Expected Credit Loss for PCD or POCI Instruments

Once the EIR for PCD or POCI instruments is computed the Expected Credit Loss will be computed using any one of the available methodologies including the Cash Flow approach, where the expected Cash Flows are the same as the recovery Cash Flows provided as a download.

If other methodologies are followed, then the corresponding data requirements are applicable. For more details about Expected Credit Loss, see Expected Credit Loss (Allowance and Provision) Calculation in IFRS 9 section.

Note:

While the computation of EIR requires Recovery Cash Flows as a mandatory input, ECL computation does not require the same.