Overview of the IFRS 9 Guidelines

The methodologies to calculate the Expected Credit Loss for different instruments under various Credit Risk scenarios are provided by the IFRS 9 guidelines. Following are those instruments that fall under the scope of IFRS 9 Impairment standards:

The methodologies to calculate the Expected Credit Loss for different instruments under various Credit Risk scenarios are provided by the IFRS 9 guidelines. Following are those instruments that fall under the scope of IFRS 9 Impairment standards:

• Lease Receivables and Trade Receivables
• Contract Assets, Loan Commitments, and Financial Guarantees

The following are the different methodologies highlighted by the standards:

• General Approach
• Simplified Approach
• Approach for Purchased or Originated Credit Impaired (POCI) Accounts
• Determining the Significance of Increase in Credit Risk