Dubai International Financial Centre 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: @@
-(DIFC).
+''Financial reporting - impairment of financial assets - IFRS 9''
-The Dubai International Financial Centre is an independent jurisdiction within the United Arab Emirates (UAE), established in 2004 to diversify Dubai's economic resources and attract capital and investments to the region.
+(ECL).
-The DIFC enhances the UAE as a location for corporate regional pooling and treasury activities.
+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:
-The DIFC is empowered to create its own legal and regulatory framework for civil and commercial matters.
+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==
-*[[DIEDC]]
+*[[Default]]
-*[[DMCC]]
+*[[Discount factor]]
-*[[United Arab Emirates]]
+*[[Exposure At Default]]
+*[[Financial asset]]
-[[Category:Accounting,_tax_and_regulation]]
+*[[IFRS 9]]
-[[Category:The_business_context]]
+*[[Impairment]]
-[[Category:Financial_products_and_markets]]
+*[[Loss Given Default]]
+*[[Probability of Default]]