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Greetings,

I have one question on expected credit loss

Are entities required to perform assessment for expected credit losses on receivables that are not trade in nature. I mean they have no contractual terms of repayment when cash was advanced to the debtor.

Like informal intercompany loan? I believe the answer is not technically as there are no contractual cash flows so there are none to miss but in practice it makes sense to, plus the question of what the substance of the balance is, eg is it in substance capital.

Thank you for the reply. So unless there is no contractual cash flows of the repayment, there is no need to assess the expected credit loss?

No, if it's a financial asset and it's debt - you need to recognise ECL

PS.
https://www.pwc.com/gx/en/audit-service ... -depth.pdf

Thank you. Very helpful.

Hi,

Just a quick question, what's the meaning of this, anyway it will be eliminated at the group level?

THanks

But in separate financial statements?