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Accounting Of The Credit Losses According To The Ifrs 9

Author

Listed:
  • Nadya Velinova-Sokolova

    (Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski)

Abstract

In July 2014, the International Accounting Standard Board (IASB) issued IFRS 9's impairment requirements, containing detailed guidance on the recognition of expected credit losses. The requirements affect all entities that hold debt-type financial assets or issue commitments to extend credit that are not accounted for at future value. In publishing these requirements, the IASB aims to rectify what was perceived to be a major weakness in accounting during the financial crisis of 2007/8, namely the recognition of credit losses at too late a stage. IFRS 9 does not retain the practical expedient available in IAS 39 to measure impairment on the basis of an instrument's fair value using an observable market prices. In the current research the new model for the measurement of expected credit losses have been analyzed. The basic principles of disclosures the effects of the measurements have been presented.

Suggested Citation

  • Nadya Velinova-Sokolova, 2018. "Accounting Of The Credit Losses According To The Ifrs 9," Yearbook of the Faculty of Economics and Business Administration, Sofia University, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria, vol. 15(1), pages 243-254, June.
    • Handle: RePEc:sko:yrbook:v:15:y:2018:i:1:p:243-254
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    More about this item

    Keywords

    credit losses; measurement; financial instruments; International Financial Reporting Standards; fair value; credit risk.;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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