IFRS 9 in the context of COVID-19 pandemic
Following the uncertainty arising from the current economic shock, prudential and securities regulators have published guidelines for the application of IFRS 9 in the context of the COVID-19 pandemic.
Significant Institutions are expected to follow these guidelines for the estimation of Expected Credit Loss (ECL) and the assessment of Significant Increase in Credit Risk (SICR) in accordance to IFRS 9 accounting for the implications emerging from the COVID-19 outbreak. Understanding the potential issues in the identification, classification and measurement of credit risk is vital for the timely mitigation of potential challenges.
Our aim as a team is to provide detailed, actionable insight that incorporates industry best practice and standards to enable you to strengthen your procedures for forecasting credit risk in the context of COVID-19.