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Forensic Accounting

How do you determine the debtors' impairment?


I know that IAS 39 does not allow general provisions on debtors' age analysis but we need to test for impairment. But how do you determine the debtors' impairment? What is the technique that can be used?

asked Mar 8, 2013 in IAS 39 - Financial Instruments: Recognition and Measurement by anonymous
retagged Apr 23, 2013 by Mysio

2 Answers

+1 vote
 
Best answer
This is already answered here:
http://www.ifrsanswer.com/1/general-provision-for-doubtful-debts

In short,you can use techniques like Net flow rate method, Vintage loss curve method & Score distribution method. Net flow rate method seems more popular.
answered Oct 11, 2013 by anonymous
selected Oct 11, 2013 by Mysio
0 votes
Example debtor impairment computation on net flow rate available here:
http://www.ifrsanswer.com/member-uploads/debtors-impairment-example.xlsx
answered Oct 11, 2013 by anonymous



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