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Tuesday 22 July 2014

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New material regarding the exposure draft Amortised Cost and Impairment

 30 December 1899


29 April 2010

To assist people in understanding why the IASB has proposed that the effect of changes in credit loss estimates are recognised in P&L at the time that the change in estimate occurs (as a �catch-up adjustment�) in the exposure draft (ED) Amortised Cost and Impairment , IASB staff have prepared a short document, example and audio recording to discuss the rationale for this decision.

This is to respond to the common question about why the ED proposes that initial credit loss estimates are included in the effective interest rate calculation, and thus considered over the life of a financial asset, while the effect of changes in those initial credit loss estimates are recognised as a catch-up adjustment.

Click here  to access the document, example and Q&A audio recording.