Questions & Answers
Should we apply ECL model under IFRS 9 if we have only trade receivables?
Question: We do not have any financial assets, except for trade receivables. Do we have to apply Expected Credit Loss rules under IFRS 9? Answer Yes, of course, because the trade receivables are in fact financial assets at amortized cost under IFRS 9. However,…
Measurement of trade receivables under IFRS 9
Question IFRS 9 classifies financial assets into several categories: at amortized cost, at fair value through profit or loss or at fair value through other comprehensive income. How do you classify trade receivables and how do you measure them initially, especially when they are not…
