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Under Ind AS 109, the 30-DAY PAST-DUE rebuttable presumption is:
AApplicable only to retail loans and credit cards, not corporate exposures
BAn absolute test — once 30 days past due, the asset must be moved to Stage 2
CA presumption that credit risk has SIGNIFICANTLY INCREASED since initial recognition when contractual payments are more than 30 days past due — rebuttable with reasonable and supportable evidence to the contrary
DA non-rebuttable rule that an entity must apply uniformly across the portfolio
Answer & Solution
Correct answer: C. A presumption that credit risk has SIGNIFICANTLY INCREASED since initial recognition when contractual payments are more than 30 days past due — rebuttable with reasonable and supportable evidence to the contrary
Para 5.5.11 — the 30-day past-due is a REBUTTABLE presumption of SICR (and thus Stage 2 / lifetime ECL). The entity can rebut it if reasonable and supportable evidence demonstrates that the credit risk has NOT significantly increased despite the past-due status (e.g., one-off operational error on the borrower's side). It is universal across asset classes — applies to retail and corporate alike.
Related questions
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