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Digital
Library of the European Council for Modelling and Simulation |
Title: |
Modelling Of Provision Under Under
New International Financial And Reporting Standard (IFRS 9) |
Authors: |
Csaba Kadar |
Published in: |
(2017).ECMS 2017 Proceedings
Edited by: Zita Zoltay
Paprika, Péter Horák, Kata Váradi, Péter Tamás Zwierczyk, Ágnes Vidovics-Dancs, János Péter Rádics European Council for Modeling and Simulation. doi:10.7148/2017 ISBN:
978-0-9932440-4-9/ ISBN:
978-0-9932440-5-6 (CD) 31st European Conference on Modelling and Simulation, Budapest, Hungary, May 23rd
– May 26th, 2017 |
Citation
format: |
Csaba Kadar (2017). Modelling Of
Provision Under Under New International Financial
And Reporting Standard (IFRS 9), ECMS 2017 Proceedings Edited by: Zita Zoltay Paprika, Péter Horák, Kata Váradi, Péter Tamás Zwierczyk, Ágnes Vidovics-Dancs, János Péter Rádics European Council
for Modeling and Simulation. doi:
10.7148/2017-0153 |
DOI: |
https://doi.org/10.7148/2017-0153 |
Abstract: |
The
impairment recognition in International Financial and Reporting Standard will
change significantly in 2018 with IFRS 9. The reason of the update of the
current IAS 39 standard is related to the global financial crisis. In this
paper I am modelling the possible effect of the new
standard to the allowance calculation compared with the previous standard. I
set the focus on the two main dimensions of impairment recognition, namely
time and amount. These characteristics of the introduced model in IFRS 9 are
closely related to the economic cycle. During the analysis, I include the
effect of macro environment to the allowance and highlight the expected
changes and possible upcoming uncertainty of impairment estimation. |
Full
text: |