IFRS 9 Impairment | Current Expected Credit Loss Model | General Model | ACCA Exam | IFRS Lectures

In this video, I explain the current expected credit loss model. Current Expected Credit Losses (CECL) is a credit loss accounting standard (model) that was issued by the Financial Accounting Standards Board (FASB) on June 16, 2016. Under the new current expected credit loss model, financial institutions will be required to use historical information, current conditions and reasonable forecasts. Farhat Accounting Lectures can help you understand current expected credit loss model.


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The new IFRS 9 impairment model requires impairment allowances for all exposures from the time a loan is originated, based on the deterioration of credit risk since initial recognition. If the credit risk has not increased significantly (Stage 1), IFRS 9 requires allowances based on 12 month expected losses.