Documents against acceptance and Expected credit loss: Difference between pages

Revision as of 09:21, 28 May 2017

Financial reporting - impairment of financial assets - IFRS 9

(ECL).

Expected credit loss is a calculation of the present value of the amount expected to be lost on a financial asset, for financial reporting purposes.

It is calculated as:

ECL = PD x EAD x LGD x Discount Factor

Where:

ECL = expected credit loss

PD = probability of default

EAD = exposure at default

LGD = loss given default

Discount Factor is based on the expected date of default

@@ Line 1: / Line 1: @@
-''International trade''.
+''Financial reporting - impairment of financial assets - IFRS 9''
-Documentary collection instructions requesting the presenting bank to deliver documents only upon acceptance of the draft from the importer.
-== See also ==
+(ECL).
-* [[Documentary collection]]
-* [[Documents against payment]]
+Expected credit loss is a calculation of the present value of the amount expected to be lost on a financial asset, for financial reporting purposes.
+It is calculated as:
+ECL = PD x EAD x LGD x Discount Factor
+Where:
+ECL = expected credit loss
+PD = probability of default
+EAD = exposure at default
+LGD = loss given default
+Discount Factor is based on the expected date of default
+==See also==
+*[[Default]]
+*[[Discount factor]]
+*[[Exposure At Default]]
+*[[Financial asset]]
+*[[IFRS 9]]
+*[[Impairment]]
+*[[Loss Given Default]]
+*[[Probability of Default]]