Home / My courses / FAC621S / General / Week 11 - 14 / IFRS 7 & 9, IAS 32 Financial instruments

Financial Accounting 202_S2_2023

 Back to course

IFRS 7 & 9, IAS 32 Financial instruments

The book holds content for weeks 7 - 9

 

Topic title: IAS 32, IFRS 7 & 9 Sub-topic title: Financial assets impairment
Financial instruments


Competence/Attributes Impairment of financial assets

1.      Account for financial instruments ·        Expected credit loss (ECL) model as per IFRS 9 require the recognition of for financial ass
that are classified @ AC and FVOCI-debt.
 
·        A loss allowance is;
Learning Outcomes:
-        allowance for expected credit loss on financial assets measured at AC, lease receivable an
2.      Account for financial assets
contract assets;

-        accumulated impairment amount for financial assets measured @ FVOCI; and

-        the provision for expected credit losses on loan commitments and guarantee contracts
Content Prerequisites
Impairment of financial assets: amortised cost
-        Impairment of -       
·        the loss allowance is an asset measurement account - with credit balance that effectively
financial assets Conceptual
reduces the carrying amount of financial assets.
framework
-        Impairment of
·        when recognising the loss allowance account, the contra-entry is an impairment loss
financial assets: -        Double
adjustment (an expense), recognises in P/L. Journal as below;
@amortised cost entry principles
Impairment loss (P/L: E)                              xxx
-        Impairment of  
financial assets: FVOI- FA: loss allowance (-A)                                                                xxx
debt Remark
Recognition the loss allowance on a FA at AC
-        Attempt
-        Impairment of
financial assets: illustrations on Impairment of financial assets: FVOCI-debt
expected credit losses the
measurement of ·        loss allowance in this case is recognised in OCI and not in asset, and the impairment loss
  financial assets (expense) recognised in P/L

Prescribed text:   ·        Journal as below;

-        Service C. L Impairment loss (P/L: E)                                               xxx

(Latest) Gripping
FA:  loss allowance (OCI)                                                               xxx
GAAP: Your Guide to
International Financial Recognition the loss allowance on a FA at FVOCI
Reporting Standards,
LexisNexis Impairment of financial assets: expected credit losses ECL)

·        ECL is the weighted average of credit losses with the respective risks of a default occurrin
its weight

·        it is computed as the PV of all cash shortfall – probability- weighted estimates of credit loss
over the expected life of the financial instrument.

·        a credit impaired asset is a FA whose estimated future cash flows have been detrimentally
an event that has already occur.

·        Illustration: refer to example 13, pg 1010, Gripping GAAP 2019/2020

 

 Back to course
 eLearning implementation for the service of students, academic staff, researchers and administrators.

Quick Links

Need assistance to migrate your online courses? If so, click here and fill in the requested information. Fill in the information even though
you are planning to migrate your own courses.

Follow Us

 

Contact
13 Jackson Kaujeua Street, Windhoek, Namibia

 Phone: +264-61-207-2580

 E-mail: tlu@nust.na

Deployed by TLU and Theme developed by LMSACE.com. Hosted by DICT

Data retention summary

Get the mobile app Namibia University of Science and Technology (NUST) - This VLE is hosted by DICT - (C) 2022.