For the Individual Recovery Cash Flow Approach, the Customer Impairment Workbench provides a framework to capture and maintain expected recovery cash flows for stage 3 impaired deals.

Depending on the significance of a customer or the significance of an individual deal, the estimated recovery cash flow plan is 

• captured cash flow by cash flow in the Customer Impairment Workbench or
• derived on the basis of the estimated future cash flow plan, applying a recovery rate for each individual cash flow. 

These recovery cash flows are then used to calculate the recoverable amount.

The recoverable amount is calculated using the Effective Interest Rate as the discount factor.   

The threshold used to identify the signifcance can be configured at portfolio level, taking definable criteria for the portfolio assignment into account.