Banking
ECL Stage 1 — 12-Month Expected Credit Loss Provision
Provisioning for performing loans (Stage 1) using a 12-month probability of default.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Charge (ECL Stage 1) | Expense (+) | 150,000.00 | - |
| Allowance for ECL (Stage 1) | Contra-Asset (+) | - | 150,000.00 |
💡 Accountant's Note
Under IFRS 9, all performing loans require a 12-month ECL provision from day one. The provision = Loan balance × PD (12-month) × LGD × EAD. This replaced the IAS 39 'incurred loss' model.
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