Accounting Standards
IFRS 9 and FRS 102 Financial Instruments Explained: How to Book Expected Credit Losses on Trade Receivables
Trade receivables can look healthy on paper right up until a customer collapses and takes a chunk of your profit with them. This guide explains how IFRS 9's expected credit loss model differs from FRS 102's incurred loss approach, and walks through a real provision matrix calculation, journal entries, and the accounting policy choice under paragraph 11.2 that lets FRS 102 preparers apply IFRS 9 instead.