ISO 9001 Certified in Valuation Advisory

ISO 9001 Certified in Valuation Advisory

forward-looking factors

Common Problems and Deficiency in Expected Credit Loss Evaluation (ECL) ASC 326 IFRS 9

2023-06-15T04:09:06+00:00June 15th, 2023|Categories: Business Valuation, Financial Reporting IFRS HKFRS, IPO / Pre-IPO Case|Tags: , , , , |

One common error in expected credit loss (ECL) evaluation is the failure to adequately consider forward-looking information. ECL estimation requires assessing not only historical data but also future expectations and economic conditions. Failing to incorporate forward-looking information can lead to an underestimation or overestimation of credit losses.

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