For intercompany loans, you need to applygeneral 3-stage model, not simplified model.It means you have to assess atwhich stage the loan isfirst and then perform calculations.I wrote anarticle about it hereand also,my premium course the IFRS Kitcontains really nice explanations and illustrations ...
I have described the mechanics of accounting forbelow-market interest rates in this article, so please check that out if interested. Unfortunately, there is no specific IFRS guidance on how to treat intercompany loans, so we need to use what we have. I have tried to help a bit in this a...
I have described the mechanics of accounting forbelow-market interest rates in this article, so please check that out if interested. Unfortunately, there is no specific IFRS guidance on how to treat intercompany loans, so we need to use what we have. I have tried to help a bit in this a...
Probability of default (PD)= likelihood of a default event that would send your loan to stage 3 (credit impaired). You need either to calculate the probability that default happens within 12 months for stage 1 loans or within the full loan’s life for stage 2 and stage 3 loans. How? A...