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Expert Advisory Panel on impairment will meet

  • Working group meeting (mid blue) Image

29 Mar 2010

The Expert Advisory Panel on the impairment of financial assets will meet at the IASB's offices in London on Monday and Tuesday 26 and 27 April 2010. In November 2009, the IASB issued an Exposure Draft on Impairment of Financial Instruments Measured at Amortised Cost.

The ED proposes to move from an 'incurred loss model' to an 'expected loss model'. An incurred loss model assumes that all loans will be repaid until evidence to the contrary (known as a loss or trigger event) is identified. Only at that point is the impaired loan (or portfolio of loans) written down to a lower value. Under the proposed expected loss model, expected losses are recognised throughout the life of a loan or other financial asset measured at amortised cost, not just after a loss event has been identified. When the ED was issued, the IASB announced that because of significant practical challenges in moving to an expected loss model, the IASB will establish an Expert Advisory Panel comprising experts in credit risk management to advise the board. Click for list of Advisory Panel Members (PDF 18k).

 

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