Definition
Stage 3 Assets, in the context of IFRS 9 are financial instruments that offer objective evidence of a credit loss event.
The term Stage 3 is not formally defined in the standard[1] but has become part of the common description of the IFRS 9 methodology.
In broad terms Stage 3 Assets are the ones for which the older IAS 39 standard considered impairment allowances
Accounting Implications
Under IFRS 9, Stage 3 Assets
- Must recognise Lifetime Expected Credit Losses
- Interest revenue is accrued on the basis of the Net Carrying Amount
See Also
References
- ↑ IFRS Standard 9, Financial Instruments
