IFRS 9 Stages
Definition
Stages and Staging of credit assets denotes the assignment / classification (at the reporting date) of all credit assets accounted under amortized cost in one of three available stages. The system resembles a Credit Rating System (with a limited number of rating categories).
Notation
In the context of a Credit Network model, separately and distinct from the Credit Rating Scale , for IFRS 9 reporting purposes each name is also classified into one of three IFRS 9 accounting stages taking values in .
In line with IFRS 9 at each time point we segment the portfolio into three distinct sets of assets belonging in the different IFRS 9 stages.
See Also
Issues and Challenges
It is more tractable to assume that the Stage classification of each asset is a dependent variable (computable by rating states and other risk drivers)