IFRS9 ECL

IFRS9, the new credit impairment model replaces IAS39

• False

• True

IAS 39 was replaced because it ( choose 3 statements that are true)

• recognized losses too late

• it was forward looking

• it was based on the incurred loss model

• there is no recognition of future probable losses

IFRS9 Impairment model is based on

• Incurred loss model

• expected loss model

IFRS9, The Expected Credit loss model recognizes credit losses based on ( choose 3)

• Past events

• Current conditions

• Unlikely events

• forecast information

IFRS9 impairment model has ( choose one)

• Four stages

• Two stages

• Three stages

Stage 1 of IFRS9 model , no loss is recognized

• True

• False

At Stage 1 , interest is recognized

• on a gross basis

• on Net basis

At stage 2, losses are recognized on

• 12 month Expected Credit loss

• Lifetime expected credit loss

A loan is placed in stage 2, because of

• Significant Increase in credit risk

• Impairment

• regulators want it

At stage3 of IFRS 9 model, the loan is

• Performing

• High risk

• Non-performing