Under IFRS 9, the probability of occurrence of risks of all types must be recognized over the entire term. The new rule applies not only to banks, but also to impairments of any financial instruments carried at cost, regardless of the industry. This forces the prompt recognition of risk provisions, because the expected cash flow (ECF) is also a key factor. Similarly, interest income (interest receivable) of any kind is no longer to be recognized in the contractually agreed amount, but on the basis of the expected payments. – See information sheets for financial instruments, loss, incurred.
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