Impairment Gain or Loss Calculation

The final ECL is computed from Allowance and Provision values as mentioned in the previous section. The Impairment Gain or Loss for the current period is computed by comparing the current reporting date's Allowance and Provision values with the previous reporting dates' Allowance and Provision values.

Impairment Gain or Loss = (Current Allowance + Current Provision) - (Previous Allowance + Previous Provision) + Current Write-off - Current Recovery

Dedicated transaction-based tables are introduced for Write-offs and Recovery. As a result, the incremental values between individual periods are calculated, instead of calculating the cumulative values from the start date to the end date.