Global Standards for the world economy

Saturday 29 April 2017

Banner graphic

IFRS 9: Financial Instruments

IASB meeting summaries and observer notes

 IASB / FASB November 2010


Financial instruments: impairment (education session) - 17 November

The boards continued their discussion of credit impairment. Representatives from the US Office of the Comptroller of the Currency began the meeting by presenting information on loss data for loan portfolios and on other loan performance statistics.

The boards then discussed seven alternative methods that had been briefly discussed at the 10-12 November joint meeting. The boards narrowed the seven alternatives down to the following three, which will be discussed in more detail at a future meeting:

  1. Alternative 2: immediate recognition of losses expected to occur in an emergence period shorter than the expected life of the loan (for example the foreseeable future);
  2. Alternative 4: recognition of lifetime expected credit losses using a time-proportionate approach combined with a good book and bad book; and
  3. Alternative 5: same as alternative 4 but with expected losses allocated using notional sub-portfolios to accommodate 'front loaded' expected loss recognition patterns.


Date: 11/17/2010