Banking
Watch List — Stage 2 SICR Trigger
Moving a borrower to the watch list following a Significant Increase in Credit Risk.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Charge (Stage 1 to Stage 2 Uplift) | Expense (+) | 45,000.00 | - |
| Allowance for ECL — Stage 2 (Increased) | Contra-Asset (+) | - | 45,000.00 |
💡 Accountant's Note
When SICR is identified (30+ days overdue, industry stress, financial ratio deterioration), the loan moves to Stage 2 and the provision jumps from 12-month to lifetime ECL. This is a significant and often sudden P&L impact.
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