The scope of the impairment requirements under the new standard are now much broader, says accounting and business advisory firm Baker Tilly Monteiro Heng in Malaysia.  

The ECL model requires impairment loss to be recognized based on ECL even if a loss event has not occurred. “Entities are required to book in day-one credit losses under the ECL model and update the loss allowance for change in the ECL at each reporting date to reflect changes in credit risk since initial recognition,” says