Expected Credit Loss

Under previous accounting standard, provisions for credit losses are measured in accordance with an incurred loss model. This results in credit losses being recognised only once there has been an incurred loss event. IFRS 9 replaces the existing incurred loss model with a forward-looking ECL model. Entities will now be required to consider historic, current and forward-looking information (including macro-economic data). Our services assist our client to estimate the expected credit loss of the following asset classes:

• Account Receivables
• Other Receivables
• Loan Receivables
• Deposits and Prepayments