This study explores the literature about definitions and concepts when a significant increase in credit risk is achieved. In response to the financial crisis the IASB has introduced a new standard (IFRS 9) on impairment, which requires a three-step approach, which in general replaces the current...

Shortly before the COVID-19 crisis emerged worldwide accounting standard boards reformed the accounting requirements for the modeling and the accounting of credit loss allowances. The Financial Standards Board (FASB) issues new requirements effective 2020 and the International Accounting...