alleryStart learning →How does the day-one loss under IFRS 9 compare with FASB's?
ASmaller under IFRS 9, 12-month cap
BLarger under IFRS 9, lifetime basis
CIdentical under both models
DNil under the FASB model
Answer & Solution
Correct answer: A. Smaller under IFRS 9, 12-month cap
The 12-month cap in IFRS 9 means a smaller initial allowance than the full lifetime CECL charge.
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