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Business, 15.11.2019 19:31 struckedblazing

The salamander company has evaluated its receivables, and has identified the following possible impairments:

note #1 has recently deteriorated in credit quality. for note #1, salamander estimates the present value of credit losses occurring in the next twelve months is $50,000, and the present value of credit losses occurring after twelve months is $20,000.

note #2 has not deteriorated in credit quality. for note #2, salamander estimates the present value of credit losses occurring in the next twelve months is $5,000, and the present value of credit losses occurring after twelve months is $10,000.

if salamander is reporting under ifrs and therefore uses the ecl model, it would recognize an impairment loss of:

$50,000 $55,000 $75,000 $85,000

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