The impact of IFRS 9 on loan impairments in Croatian banks (CROSBI ID 667848)
Prilog sa skupa u zborniku | izvorni znanstveni rad | međunarodna recenzija
Podaci o odgovornosti
Broz Tominac, Sanja ; Vašiček, Vesna
engleski
The impact of IFRS 9 on loan impairments in Croatian banks
This paper explores the impact of application of new International financial reporting standard 9 Financial Instruments on loan impairments in Croatian banks. The impairment requirements in the new standard are based on expected credit loss model and replace the International accounting standard 39 Financial instruments: Recognition and measurement incurred loss model. The change in regard to the IAS 39 is the new classification and measurement model based on the business model of the entity (at the portfolio level) and the characteristics of the contracted cash flow by individual financial asset. Credit loss represents the difference between all discounted contracted inflows payable to entities under the contract, and all discounted cash inflows that the entity is expecting. A new model relies on entities being able to make robust estimates of expected credit losses at the point at which there is a significant increase in credit risk. For this purpose, banks will need to decide how ‘’significant increase’’ and ‘’default’’ will be defined in the context of the instruments (loans) they hold. The paper explores what are the main challenges in the field of data availability, impairment model, criteria for the allocation and macroeconomic factors when implementing the new standard in banks. The new model of impairment is likely to have a significant impact on the systems and processes of banks due to its extensive new requirements for data and calculations.
banks, IFRS 9, impairment, loans, loss model
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Podaci o prilogu
233-239.
2018.
objavljeno
Podaci o matičnoj publikaciji
Book o f Proceedings of 34th International Scientific Conference on Economic and Social Development - XVIII International Social Congress (ISC - 2018)
Maloletko, Aleksander ; Rupcic, Natasa ; Baracskai, Zoltan
Moskva: VADEA, Varazdin, Croatia / Russian State Social University, Moscow, Russia / Faculty of Management University of Warsaw, Warsaw, Poland / University North, Koprivnica, Croatia / Faculty of Law, Economics and Social Sciences Sale - Mohammed V University i
1849-7535
Podaci o skupu
34th International Scientific Conference on Economic and Social Development ; 18th International Social Congress (ISC - 2018)
predavanje
18.10.2018-19.10.2018
Moskva, Ruska Federacija