Kund, Arndt-Gerrit; Rugilo, Daniel - 2023
IFRS 9 substantially affects the financial sector by changing the impairment methodology for credit losses. This paper …. First, the "cliff-effect", which refers to sudden increases in impairments. It occurred under IAS 39, as credit losses were … approach, which gradually recognizes expected credit losses (ECL). These anticipated impairments, however, constitute a …