Presenting cured credit-impaired financial assets
Keywords: Mazars, Thailand, IFRS, IFRS IC, IFRS 9
21 May 2019
The IFRS IC received a request to clarify the correct presentation in the statement of profit or loss when the assets are either paid in full or reclassified from Stage 3 of the impairment model following an improvement in their credit risk level.
The Committee concluded that IFRS 9 was sufficiently clear and that any adjustment should be presented as a reversal of expected credit losses, including any amount relating to unrecognised interest that was not recorded as impairment. Thus, the reversal of impairment losses may exceed the total amount of impairment losses recorded previously.