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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.

 

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