This article first appeared on Focus Malaysia
KPMG Malaysia head of audit Foong Mun Kong says that financial institutions aside, the IFRS 9 is a big challenge poser for companies that do not have sufficient historical data or modelling experts to assist them to estimate a reliable impairment loss.
“For example, non-financial institutions may find it difficult to quantify the impairment loss using the expected loss model for trade receivables, other receivables, inter-company loans or financial guarantees provided to banks to secure loans of related companies or subsidiaries,” he asserts.
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