ESMA issues guidance on accounting implications of COVID-19 specific to ECL
26 March 2020
ESMA has issued a public statement on the audit implications of the COVID-19 outbreak on the calculation of expected credit losses (‘ECL’) under IFRS 9. The document includes ESMA’s views on a number of areas, including:
- Accounting for the modifications resulting from the introduction of support measures by governments;
- Assessment of whether a significant increase in credit risk has occurred;
- ECL estimation;
- Public guarantees on issuers’ exposures; and
The public statement may be accessed here.