Construction
Expected Credit Loss — Construction Receivables
Provisioning for potential non-collection of certified progress invoices from a financially stressed client.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Loss (ECL) | Expense (+) | 30,000.00 | - |
| Allowance for Impairment (Receivables) | Contra-Asset (+) | - | 30,000.00 |
💡 Accountant's Note
Under IFRS 9, contractors must assess and provision for expected credit losses on their progress receivables. Client financial difficulties, disputes, or country risk can all trigger an ECL provision.
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