経済学および管理科学の国際ジャーナル

This study explores the literature about definitions and concepts when a significant increase in credit risk is

achieved. In response to the financial crisis the IASB has introduced a new standard (IFRS 9) on impairment, which requires a three-step approach, which in general replaces the current incurred impairment model with a new expected loss model. This research paper summarizes alternative impairment models and particuarly focus on the significant detreortaion criteria, which is a corner stone of the new IFRS 9 impiamrnet model. The expected loss model is not completely new within the accounting literature. The study provides early insights into implemention of IFRS 9 on impairment, as IFRS 9 will become applicable 2018. It is also relevant for regulators, as it becomes obvious due to the non-existance of a dominant approach; the question arises if the regulator should provide more guidance to avoid that all companies purse completely different model resulting in decreasing comparability for investors.