IFRS Project InsightsFinancial Instruments: Impairment |
The objective of the Impairment phase is to improve transparency of provisions for credit losses and the credit quality of financial assets, recognise credit losses more timely and eliminate the front-loading of interest income. In November 2009, the Board issued ED/2009/12 Amortised Cost and Impairment (ED) for public comment proposing an expected cash flow model for measuring financial instruments at amortised cost, including recognition of credit losses through a reduction of interest revenue by using an integrated effective interest rate.
IFRS Project Insights
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