3-Stage Impairment Model – Intercompany Loans

IFRS 9 Financial Instruments became effective for periods beginning on or after 1 January 2018. IFRS 9 introduced the application of the “expected credit loss” model which differs from the incurred loss model applied in terms of the previous standard, IAS 39 Financial Instruments. The expected credit loss model is applicable to all financial assets subsequently measured at amortised cost or fair value through other comprehensive income. This applies to intercompany loans included in the separate financial statements.View PDF