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Is impairment based on actual ECL or on the increase (decrese) of ECL from inception?

If based on ECL aren’t we double counting loss (fair value and impairment)?

Consider the investment on a bond with a fair value of 97 (based on a “default risk free” value of 102 and -5 of loss; of which 1,5 for the first 12 month).
When accounting for the position you will have 97 and an impairment of 1,5 then 95,5.
95,5 comes then from 102 – 3,5 (loss after the first 12 months) – 2 * 1,5 (loss of the first 12 months and impairment) .


asked Jun 7, 2017 in IFRS 9 - Financial Instruments by barta

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