IFRS 9 ECL Staging: A Step-by-Step Guide to 12-Month and Lifetime ECL
Understand IFRS 9’s three-stage general approach, assess significant increases in credit risk, and calculate 12-month versus lifetime ECL with a synthetic term-structure example.
Credit risk topic
IFRS 9 expected credit loss
Understand impairment stages, scenarios, and discounted expected losses.
Guides and worked examples
IFRS 9 stages and ECL horizons
Connect impairment stage to 12-month or lifetime expected credit loss measurement.
Significant increase in credit risk
Assess the change in default risk since initial recognition, not merely the change in allowance.
Scenario-weighted, discounted ECL
Combine probability-weighted paths for PD, LGD, exposure, and cash shortfalls transparently.
Modifications, POCI assets, and ECL disclosures
Recognize special accounting paths where a standard model diagram is not enough.