4/10/2024 0 Comments Implications of credit memo![]() ![]() Because of the short-term nature of trade receivables, many companies may not have needed to consider updating ECL estimates for changes in future economic conditions relative to historic experience. This includes information about past events, current conditions and forecasts of future economic conditions. Reflecting information available at the reporting dateĮCLs are measured at an unbiased, probability-weighted amount, using reasonable and supportable information that is available without undue cost or effort at the reporting date. ![]() about segmentation of a portfolio or the effective interest rate used to discount expected future cash flows – may no longer be appropriate in the changing economic conditions and so may need revising. In addition, certain assumptions used in the ECL estimate – e.g. This may include considering the need for additional scenarios and the impact of any government support schemes. Those matrices are adjusted to incorporate reasonable and supportable information that is available at the reporting date, including economic uncertainty resulting from events such as geopolitical unrest, natural disasters, climate effects or inflationary pressures.
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