Comprehensive summary on approaches of Expected Credit Loss (ECL) under Ind AS 109 Financial Instruments
COVID-19 has already disrupted most of the business. As it has been said by many professional colleagues it will have a great impact on financial statements as well in terms of assumptions, disclosures, etc.
One of the areas which will have numerous impact is the Impairment of Financial Instruments especially for Banks, NBFCs and Financial Institutions. Impairment requirement under Ind AS 109 Financial Instruments required to compute Expected Credit Loss (“ECL”). I have prepared a comprehensive summary of approaches of ECL for all of your references.
Given the pandemic being faced by countries all across the world, a deficit ballooning seems to be the least of our worries here. Even in times like this, Government can afford an overdraw here and there. The ancient proverb “cut our losses” seems like an apt term right about now.
~Sanjeev Nanda