Credit Worthiness 1

Which is not part of the 5 C's of Credit?

• Capital

• Commodities

• Collateral

• Character

• Conditions

Which established framework deals with accounting for credit risk?

• IFRS9

• IAS38

• IFRS16

• IAS2

• IAS7

You are allowed to use either IAS39 or IFRS9 when accounting for credit risk.

• True

• False

Probabilities of Default can be measured by:

• Point in Time measure

• Through the cycle

• Both A and B

• None of the above

Why did they change from IAS39 to IFRS9?

• The rules of IAS 39 were outdated and needed to be updated

• IFRS 9 was lobbied as it would benefit large companies

• To introduce a new expected loss impairment model

• IAS had to be replaced as it made illegal activities possible