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  • ESMA issues guidance on accounting implications of COVID-19 specific to ECL

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
  • Disclosures.

The public statement may be accessed here.