An entity shall assess at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. If there is objective evidence that an impairment loss on loans and receivables or held-to-maturity investments carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred). The amount of the loss shall be recognized in profit or loss. Debt security classified at available-for-sale. When a decline in fair value has previously been recognized in other comprehensive income (OCI) and there is objective evidence that the asset is impaired, the cumulative loss previously recognized in OCI is reclassified from OCI to profit and loss as a reclassification adjustment. The amount reclassified is the difference between the amortized cost and the current fair value.
Two core income accounts, 4004000303 and 4004000304, are available for IFRS Impairments and IFRS Impairment Reversals, respectively. The postings vary depending on the regulatory of the entity/basis you select for the impairment. There is no distinction between credit and non-credit losses under IFRS requirements.
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