IFRS 9: ECL on intercompany loans repayable on demand

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 predecessor standard IAS 39 Financial Instruments. The expected credit loss model is applicable to all financial assets which are subsequently measured at amortised cost or fair value through other comprehensive income. This includes inter-company loans.View PDF