Division 11.2 Movements in allowances and provisions for credit losses under IFRS (12.1)F1

where the modification results in the partial or total derecognition of an asset due to a write-off as defined in paragraph 74, the impact on expected losses due to this derecognition shall be reported in ‘ Decrease in allowance account due to write-offs ’ , and any other impact from modification on expected credit losses in other appropriate columns;

where the modification results in the complete derecognition of an asset for reasons other than a write-off as defined in paragraph 74 and its substitution by a new asset, the impact of modification on expected credit losses shall be reported in ‘ Changes due to derecognition ’ for the changes due to the asset derecognised, and in ‘ Increases due to origination and acquisition ’ for the changes due to the newly recognised modified asset. Derecognition for reasons other than write-offs shall include derecognition where the terms of the modified assets have been subject to substantial changes;

where the modification does not result in derecognition of all or part of the modified asset, its impact on expected losses shall be reported in ‘ Changes due to modifications without derecognition ’ .

where the debt instrument is partially or totally derecognised because there is no reasonable expectation of recovery, the decrease in the loss allowance reported due to the amounts written off shall be reported in: ‘ Decrease in allowance account due to write-offs ’ ;

‘ Amounts written-off directly to the statement of profit or loss ’ shall be the amounts of financial assets written-off during the reporting reference period that exceed any allowance account of the respective financial assets at the derecognition date. They shall include all amounts written-off during the reporting reference period and not only those which are still subject to enforcement activity.