Deloitte issues comment letter on the supplement to exposure draft on amortised cost and impairment
Apr 01, 2011
Deloitte's IFRS Global Office has submitted a letter of comment on Supplement to Exposure Draft ED/2009/12 'Amortised Cost and Impairment'.
The comment letter expresses Deloitte's views on the IASB and FASB's development of a more operational expected loss model. The following is an excerpt from the letter:
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We are generally supportive of an approach that recognises lifetime expected credit losses for performing assets ('the good book') on a time proportional basis with a minimum floor and recognises immediately lifetime expected credit losses for assets that are identified as non-performing ('the bad book') in full…However, we are not supportive of the inclusion of a ‘higher of' test based on an assessment of credit losses expected in the ‘foreseeable future' for assets in the good book. |
Click to Download our Comment Letter (PDF 115k). All of our past comment letters are here.
