ECL Staging Tool
IFRS 9's expected credit loss (ECL) model requires financial instruments to be allocated to one of three stages based on changes in credit quality since initial recognition.
This tool applies the staging criteria in IFRS 9 paragraphs 5.5.3–5.5.11 to help you determine whether instruments should be measured using 12-month ECL (Stage 1) or lifetime ECL (Stage 2 — significant increase in credit risk; Stage 3 — credit-impaired).
Has there been a significant increase in credit risk (SICR) since initial recognition?
SICR is assessed by comparing the risk of default at the reporting date to the risk at initial recognition. Consider all reasonable and supportable forward-looking information available without undue cost or effort.
- –More than 30 days past due (rebuttable presumption per IFRS 9 §5.5.11; application guidance in §B5.5.19–24)
- –Significant decline in external or internal credit rating
- –Borrower experiencing significant financial difficulty
- –Breach of financial covenants
- –Significant adverse change in expected performance of collateral
- –Actual or expected forbearance or restructuring
How it works
You describe the instrument's credit history since origination — changes in internal or external credit ratings, days past due, forbearance, watch-list status, and any other qualitative indicators of significant credit deterioration.
The tool applies the rebuttable presumption (30 days past due, §5.5.11, with application guidance in §B5.5.19–24) and assesses SICR and credit-impairment indicators to determine the appropriate stage. The low credit risk simplification (§5.5.10) is not automated in this tool — consult the standard if your instrument may qualify.