The IAASB issues New Illustrative Examples for ISA 540 (Revised) Implementation: Expected Credit Losses

The examples illustrate how an auditor could address certain requirements of ISA 540 (Revised).

The examples were developed to assist the auditor in understanding how ISA 540 (Revised) may be applied to:

1) International Financial Reporting Standard (IFRS) 9 Impairment (ECL) – Credit Card

2) IFRS 9 Impairment (ECL) – Significant Increase in Credit Risk

3) IFRS 9 Impairment (ECL) – Macroeconomic Inputs and Data