IAS39 differentiates between two stages:
- Incurred but not reported losses (IBNR)
- Objective evidence of impairment
For IBNR, it covers the calculation of risk provision based on portfoliosprovisions on the basis of portfolios. For each portfolio, the specific Probability of Default and Loss Given Default can be
- calculated based on historic using historical default information or it can be
- delivered from any source.
It covers the calculation of risk provision based provisions on the basis of portfolios. For each portfolio, the specific Probability of Default and Loss Given Default can be calculated based on historic using historic default information or it can be delivered from any source. The combination of both, the loss-rate, will be applied to the Gross Carrying Amount.
...
- imported from any source or
- captured in the Customer Impairment Workbench.
For the customer-specific consideration of objective evidence also to two options are also provided: Recovery Cash flows can be imported from any source or captured in the Customer Impairment Workbench.