Results 221 to 230 of about 51,563 (265)

The Decision Usefulness of Current Expected Credit Losses: Users’ Views about the Current Expected Credit Losses Model

Behavioral Research in Accounting
ABSTRACT In 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments—Credit Losses,” requiring firms to switch to a current expected credit losses (CECL) model. To assess the impact of this new standard, we performed semistructured interviews with analysts, trade group members, and financial ...
Jordan M. Bable, Christopher I. L. Wong, Michael J. Wynes   +2 more
openaire   +1 more source

Expected credit losses in international banking business

Scientific notes
The late and insufficient formation of provisions for credit losses became one of the causes of the global financial crisis of 2008-2009. In response to the challenges posed to the international community by this crisis, the Basel Committee on Banking Supervision developed Basel III requirements for financial institutions, which include including ...
Tetianа Musiiets, Iryna Olshevska, Valeriia Mozhna   +2 more
openaire   +1 more source

Estimating Lifetime Expected Credit Losses Under IFRS 9

SSRN Electronic Journal, 2016
We present an estimation framework of lifetime expected credit losses in accordance with IFRS 9. Rooted in the literature of estimating multi-period default probability, the framework rests on a rigorous definition of "term structure of default probability" and conditional expectation given forward-looking economic dynamics. It is easy to implement and
openaire   +1 more source

Accounting for expected credit losses

2016
This paper discusses the results of the research problem of accounting for expected credit losses. Accounting for expected credit losses should provide users of financial statements useful information about an entity’s expected credit losses on its financial assets and commitments to extend credit.
Mrša, Josipa, Čičak, Josip, Ljubić, Dara   +2 more
openaire   +1 more source

Expected loss and fair value over the credit cycle

The Journal of Credit Risk, 2005
We present an easily applied method of risk-adjusting reduced-form models for changes in systematic risk over the credit cycle. Using an empirical approach, we model the probable changes in systematic risk over time, showing that investment-grade portfolios that are naive to changes in levels of systematic risk can significantly underestimate expected ...
Daniel Philps, Solomon Peters
openaire   +1 more source

Current Expected Credit Losses and consumer loans

Journal of Accounting and Economics, 2023
Joao Granja, Fabian Nagel
openaire   +1 more source

Estimating Unbiassed Expected Loss, with Application to Consumer Credit

SSRN Electronic Journal, 2017
The credit risk measure, Expected Loss (EL) is defined as the product of the three risk parameters: probability of default (PD), loss given default (LGD) and exposure at default (EAD). EL is central to risk management, profit estimation, calculating regulatory capital requirements and the standard accounting rules for credit (IFRS 9).
openaire   +1 more source

A transitions-based framework for estimating expected credit losses [PDF]

, 2014
This paper presents a framework for estimating losses for residential mortgage loans.At the core is a transitions-based probability of default model which yields directly observ- able cash-fl ows at the loan level. The estimated model includes coefficients on unemployment, Loan to Value ratio and interest rates, all of which allow a macroeconomic ...
Gaffney, Edward, Kelly, Robert, McCann, Fergal   +2 more
openaire  

Could corporate credit losses turn out higher than expected?

2021
While corporate credit losses have been low since the start of the Covid-19 pandemic, their future evolution is quite uncertain. Using a forecasting model with a solid track record, we find that the baseline scenario ("expected losses") is benign up to 2024. This is due to policy support measures that have kept debt service costs low.
Juselius, Mikael, Tarashev, Nikola A.
openaire   +1 more source

Implications of the Current Expected Credit Loss accounting model

Journal of Banking Regulation, 2017
The Financial Accounting Standards Board approved a controversial accounting change in 2016 that impacts how and when US banks account for loan losses. The accounting modification will require the allowance for loan losses to be sufficient to cover all losses projected over the life of loans and leases originated or purchased.
openaire   +1 more source