The Impact of the Corona Pandemic on The Application of IFRS 9 In the Management of Financial Assets in Egyptian Banks

Abstract

Shortly before the COVID 19 crisis, the Financial Accounting Standards Board reformed the accounting requirements for modeling and accounting for provisions in lending operations. The Financial Accounting Standards Board (FASB) put these amendments into effect in January 2020, and the International Accounting Standards Board (IASB) issued IFRS 9, which went into effect in The crisis that could develop from COVID19 will be the first test of the new credit loss models that have arisen Originally from another global financial crisis in 2009. This paper provides an overview of these new ECL & CECL models. This is done by explaining the main differences between loan models. As a result of conducting the study, the expected credit loss model – even if it reflects the management method – should be implemented once, necessary and unchanged once implemented. All available information must be incorporated into the form. As a result, companies cannot be wary of increasing creditworthiness, but changing the macroeconomic outlook is an important driving force for the credit model