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Expected Credit Losses (ECL) provides a more forward-looking impairment model. Under the impairment approach in IFRS 9, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for expected credit losses, and changes in those expected credit losses. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition and, consequently, more timely information is provided about expected credit losses.

Eagle’s accounting solutions allows you to process expected credit losses when you use an accounting basis of IFRS or US GAAP. You can process ECL for a group of assets (collective level) or at the individual lot level (asset level).