Domicile 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: @@
-.  ''Company and commercial law - tax.''
+''Financial reporting - impairment of financial assets - IFRS 9''
-The place or country in which a company is incorporated, or a business is registered.
+(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.
-.  ''Individuals - tax.''
+It is calculated as:
-The country that an individual treats as their home, and with which they have the closest legal attachment.
+ECL = PD x EAD x LGD x Discount Factor
-.  ''Investment funds.''
+Where:
-The country of a fund’s creation.
+ECL = expected credit loss
+PD = probability of default
-.  ''Bills of exchange.''
+EAD = exposure at default
-The place where a bill of exchange is payable.
+LGD = loss given default
+Discount Factor is based on the expected date of default
-== See also ==
-* [[Bill of exchange]]
-* [[Company]]
-* [[Fund]]
-* [[Incorporation]]
-* [[Residence]]
-[[Category:Accounting,_tax_and_regulation]]
+==See also==
-[[Category:The_business_context]]
+*[[Default]]
-[[Category:Identify_and_assess_risks]]
+*[[Discount factor]]
-[[Category:Manage_risks]]
+*[[Exposure At Default]]
-[[Category:Risk_frameworks]]
+*[[Financial asset]]
-[[Category:Risk_reporting]]
+*[[IFRS 9]]
+*[[Impairment]]
+*[[Loss Given Default]]
+*[[Probability of Default]]