AASB 1 First-time Adoption of Australian Accounting Standards B8D-B8G: Apply the AASB 9 impairment rules retrospectively using information available without undue cost or effort at the transition date; where the initial credit risk cannot be reconstructed, recognise lifetime losses until derecognition

What does B8D-B8G require?

Expected credit losses are applied retrospectively, subject to specific reliefs. At the transition date the entity uses reasonable and supportable information, obtainable without undue cost or effort, to approximate the credit risk at initial recognition and compare it with the credit risk at transition; it need not search exhaustively. The low credit risk simplification and the more-than-30-days rebuttable presumption may be used. Where reconstructing the initial credit risk would involve undue cost or effort, a loss allowance equal to lifetime expected losses is recognised at every reporting date until the instrument is derecognised, unless at a reporting date its credit risk is low.