LOAN IMPAIRmEnT OLD MODEL

-
incurred model

impairment an
e-stage stage

orimmomentmorm
Loan Receivable Stage

trikonmena
-

financial asset from a loan granted by bank

increased significantly increased significant a
notincreased ,
Credit
7
,
for
loss
paa,
Allowance Lifetime
> recognition of
measurement :
RISR a
pas

Initial Subsequent
for expected credit
losses
· now low credit risk moreMan30 days
ayments

Fr TC
-
Amortized cost
put 2 impairment loss
Lifetime expre i s

Lifetimeexpected
+
case
Recognize
<
an 12-month expected
principal repayments
shortfalls loss
-

credit loss credit

aa

ExpandcreditLos
I amortization Of o

measurement :
as objective
a evidence
premium/ discount
noobjectiveendence
a
Objective
-

impairment >
PERS a no prescribed measurement
N/A Of impairment
Evidence

recognize impairment fromthetima

·

Origination Fees > CA vs PV of estimated future cashflows e Clmp

.)

fees charged by bank against borrower ↓

reduced
2 credit loss Interest net carrying amount
for carrying amount/
expect unflows
creation of loan based on gross
is directly
2) allowance account
contractual ( Income
face amount
(face amount -
AFLT)
:
treatment
2 expected credit

are
untamedinterest homeamorizeda
-

weighted ge of credit losses

a #
-

over a Pendability
Direct origination costs bronde amoring as
:

default ( %) 12/21/25
* of C : 5 1 225 , m
-
offset to unearned origination fees
In Income : G27 , m

↑
.

OF 7 DOC :
UIl :
Amortization + interest income old/ncured model

DOC Amortization Interest income

(DOC : -
:
OF
Contractual (F
: p + 1 =
8 400
, 000
,

OF received PV

P (51225s
in
* included loan receivable modified CF :
-
=

1/ 1/24 7 ,500 , to -

Impairment loss 7 , 175 , un

12/71/24 "1 128, 400 , cro
.

4451

#nearment
800 , u
1) /24 Loan receivable 7 , 500 , 00

cash 7 ,500 i n

7, 500 , mo

12/21124 Cash 900 , 008

interest Income 900 , N

-mo ascomp
. Los na

estructuring
Des Allowance for Loan Imp .
m , 175 , 0

900K

Int .
Income
900K

Allowance for loan Imp . 900K

Three-stage/EC mode Interest Receivab le 900K

12milac case 500R

500K

& amonise itunda

Loan Receivable
9
Stage 1 Stager 1 :
1 /24 Loan Receivable 5 , cro , mo
5 un · un AFLI 427 000
expected cashflow " un Cash R/1/22 ,

0 42 Ind Ind
. 427 , 000
PV
.

Factor .

~ 12131/24 500 , uro

toe
To ot cashton cash

Stage 2 CA interestI ncome 500

expected creclos zizio

loss 221 ,
Impairment
AFLI 221 , un

T
expected
month credit loss o

stage 3

-ine
Loan Receivable

AFLI

CA 12/31/24
221 ,
M
False ,

Stage 2 1211/25 cash 500 , u

~
Interest Income 500 , u
Expected cashflow

# Factor no m e Impairment loss 667, mo

-
AFLI celeziur
DV of cashflows 2 , 040 , No

-sim
CA wo ,

Expected credit loss 2 , 960 , u

30 %
Prob ability
-

Lifetime expected 888 , un

=
Loan

AFLI
Receivable

500 , u
stage 3 12/31/ar Cash
Interest Income 500 , u

expected cashflow 2 , 00
, up
loss 2 , 412 , un
Imp airment
PV Factor 0 75
2 claiur
.

AFLI
- a
DV of cashflou
ro 1 , 500
AFLI 3 ,500 , u

(simo mos
elgilace
,
Loan Receivable 3 ,500 lun

3 , 500 , u 100%
Lifetime expected reg Nige
-

Credit los) kaimnas

-naustaaowan)
12/21/27 cash 150 ,
Loan 1150

m
Receivable m
Interest Income ,

AFLI

#
lemilar
 INVENTORY

a
Terms :

top ing
point
·

7
Fob shipped 1/1/15

aid

a
num
ferms
- Bill & hold : owner is buyer
> For SP prepaid
BUYER >
,

(200
> FOR SP , collect
(not included in physical count) + 8000 , m
FOBD ,
prepaid Seller none
SELLER
<
FOB D collect
,
Buyer -

WHO IS THE OwnER ?

BUY ER SELLER

<
FOR JP/ROB Seller :FOB Destination / For Buyer
>
7 FAS , GF Lay away
I
millI hold
"
sale on Approval

1
Installment sales

Purchase Discount net method

S
Gross method

Gross method net method

VI/24 Purchases 4 , it Purchases 11 aro , no

Initially Purchase
purchases :
Gross &
: Net
Ap 2 ,920 , no
AP
AP 4 uro ,
mo
AP

.
P
Discount when taken recognized Purchases Simo , o Purchases 1 , 900 , 00
recognized whether

5 , wo , us Ap 1 900
, , cro
=
paid w/in discount taken or not AP

period

11/24 Ap mm Ap 3,900 , wo

Cash 3 ,900 , on

%Doa
1. p, , 0

cash

4 900 , 00
Ap AP ,

1/n1/24 5 , 20 , u
Loss on p .
Disc 100 , Go

I
cash sicr , mo
Cash Sicro , i

purchases :
azo , u 02a , u
-
Purchases :

finance cost

Lother expenses)

If entity used GM
t win discount period
1) check if as of 12/31

Discount 100
-
contra-acounts a set
pa

+ 735 , 008
AllowanceonDurchase 15 , 006
account

Purchases : 795 , 000

no adjustment

①
12/31/20
100 , 0 0
AJE :
Loss 100 ,000

no adjustments
1/15/25
alr transferred risk & ownership
Receivable 00 , mo

100, m
Recovery

* ②
Ap 150 1 000

Purchase return 150 , ur

③ AJE :

Advances to suppliers Zoom

1 500 , un
Inventory cost-Fow & LCRU

FitO approach

purhaprablaso
Initial measurement : cost -

mare
El615 , 000

-
Overhead

225
C
CJ6 , un sold units
el

Inventory cost Flow

2 "1000 TAS
Specific Identification
& 000)
>
-
,
units
are

Inventon paintin gara for

w/ matching of cost & revenue

- be #if is at most recent prices

FIFO

2I G most recent prices

UNCOGSGod pr
a

can beusedforbothpenodi e I
produces same an as

AYE BEE

weighted average

inventoa imme
uor
perio cost 1
-

> moving Item]

·
average
Individual (Item by

used erpetual inventory system

costisrecomputedeveryina return
-

unit -

CCURV

MRV =
Gst SP-Est cost of completion
. .
-
Est .
Cost of Disposal

> Hemby Item Basis

↑
cost 7 nRV =
Diff - included in CoGs computation

to
subsequent ↑ in hRU -
recognize gain only limited

cumulative losses previously recognized

n w
cost
deduction to LOGS

Allowance method
-
Direct menod 5 200m o ne a a
Gain

Inventory -

writedown 'Buned in Loss

maintained in valuation acct

Loss/gain
gain notreponda
<
reported
-

was
Pre
separately but part of was in cobs

Beg . Inv.

·
Purchases

Purchase commitment
27 ,8 00 wo
Fixed Price G Fixed Certain Future Date
Quantity
LChRV application

market loss one

a

ce Fixed
> price

Loss on

XX
Est ,
viability

< market Price * recognize gain limited only to prevloss

=

X- market price .
us Fixed price :
Lower
~
Purchase
XX

Qian
XY
-
Fixed price a is

300 m
5 1 300, mo

a
Trans
wass

12/1/24 memo entry

commitment 500 , 0
12/21/24 Loss on Purchase
(100 , 00 x (55-50))
ast .
Liability on PC 500 u

/1/25 Purchases 51 00100

- - (55 vs 53) + 100 , 000 :
Lower

Est. PC 500 , u
Liability -

A/D 5150 m
Gain on PC 300 , no
 BIOLOGICAL ASSET
Biological Assets
- Living animals or plant

Applies to :

*
plants

i
bearer consumables bearer
1) Biological assets except BIOASSET Simo , Un

2) Agricultural produce at the point of harvest cash Sir , un

intervention auced
with human

Agricultural
activity Bio Asset

Cash
2. wo , mo

ziro , un
entity of the biological
-

management by an
-

transformation and harvest of biological assets

Al

↑ Loss
conversion into agricultural produce ,
20
forsale or or

250 , un
into biological assets

BioAsset too , mo
Biological Transformation
Gain 400 , u
-growth-proauction

degeneraton procreation
- -

#
# arrest Inventory 850 , i

-attachmentofproduce from biologica

as
a Gain 850 , mo

Recognition Principle

asset a
as o r

Entity controlsthe
1)

2) probable inflow of economic benefits

fairvame/ costof
3) the asset e
an

Initial cost

Subseq
:
:airment-aca
cost-imp

a
Inventory

↑ & 200m
Initial s Subsequent Measurement

·
-
> Fair value less costs to sul-puntil disposal 800
-

* Iv not available use cost =

cost mo del to the und
if , -

Fair value pricethatwould bemind talanat be determined a

subsequent

can
-

participants at the measurement date

transition Ev- CTS
-

S 7 , 000 , u
-

costs to
sel-mementacostdirayattributeoa
e g
. .

#Nanportmana
fair value sell
masse

changes in Friss CJS : to Ph

i diff .
age
- so
m
u

-
400 , u

i
5)
G

Produc
Agricultural

- Harvested of the biological asset/bearer plant

a

# arrest

tom biologica
as
a

Initial
mentowave
FV-CTS at the point of harvest

gain from agricultural prod

are

Recognizedas
a

of a
nas Dates

Point
Diff

At
same age

willend Wh
* PAS 41 ,
.

·
AFV-CS Price change

2 YO 100
Initial
a
2 5 Y8
.
10

NB 18 7 ,un

subsamMeasurement since will be accone at

Gau
PAS I6 : PPE 2 . 540-1

/ living plants that are :

Bearer plants

of agricultural are
pac
production or supply

~used
in the

hasa beaucormorThan
Don

~
one 292 , cro
I.

3 110 xcro lineiro

o

Initial

m DUAL PURPOSE
:
at cost

PLANTS
subsequent :

- *
cost

BIOLOGICAL
model/Revaluation model

Asset
-yo
12/71 10x00000e
~ cultivated for bearing agricultural produce

↓ be sold as a living plant or agricultural produce

inset
can

insi m

cash I No , cro

7/1 BIOASSCt 108, u

n
cash

Gain

Gain

12/27
I Gain APh
#
55 , wo

1671