WEEK 4 Discussion

School: York University - Course: ACCOUNTING CSAC4510 - Subject: Accounting

REQ-C Yes, Chloe's approach to determining its allowance for expected credit losses should be conside Lifetime expected credit losses are an expected present value measure of losses that arise if a b The percentage of sales approach that would not be approriate for determining the allowance f The allowances should be made on the best estimation based on considering all the information Reference-1 FSI Executive Summaries, (2017, Dec 13), "IFRS 9 and expected loss provisioning- Executive sum https://www.bis.org/fsi/fsisummaries/ifrs9.htm#:~:text=Lifetime%20ECLs%20are%20an%20exp

WN-1ACCOUNT RECEIVEABL ALLOWANCE 6150 (WN-1) 6150GIVEN ALLOWANCE FO 7758 (WN-2)WN-2GIVEN BALANCES 775836000 48000 12200 8800 GIVEN ALLOWANCE FO 2250 (WN-3)WN-3ACCOUNT RECEIVEABL 2250ALLOWANCE GIVEN ALLOWANCE FO 3858 (WN-2)WN-4FROM WN-2 3858GIVEN ALLOWANCE FO lance of allowance for doubtful accounts at the year end shows that may be Chloe has overestimated the t regular levels, errors in calculations. An a reviewer, one should review all the information and check if there " lifetime expected credit losses" under IFRS 9. borrower defaults on its obligation throughout the life of the loan. (Reference-1) for expected credit losses under IFRS 9 because it will not take in account the credit risk and other impact n and sitution at that present time.