Reference
IFRS 9 / CECL Impairment Calculator glossary
Terms used in IFRS 9 / CECL Impairment Calculator and its documentation.
Applies to IFRS 9 / CECL Impairment Calculator as it works today. Moraph updates the platform continuously, and this page is reviewed when it changes.
Terms used in IFRS 9 / CECL Impairment Calculator and its documentation.
| Term | Meaning |
|---|---|
| Allowance for credit losses | The amount set aside against loans and securities for expected credit losses, recorded in your financial statements after approval. |
| CECL | Current expected credit loss, the US GAAP approach in ASC 326 that estimates lifetime expected losses. |
| IFRS 9 staging | Assigning exposures to stage 1, 2 or 3 based on credit risk changes since origination, which decides whether 12-month or lifetime losses are measured. |
| Pool | A group of loans with shared risk characteristics that is estimated together. |
| Cohort | Loans grouped by origination period so their loss experience can be tracked over time. |
| Reasonable and supportable forecast period | The period over which economic forecasts are applied before the estimate reverts to historical experience. |
| Reversion | How the estimate moves from forecast-based loss rates back to historical loss rates after the forecast period. |
| Qualitative adjustment | An adjustment to the modeled estimate for conditions the model does not capture, tied to a policy factor and supported by evidence. |
| Individually assessed loan | A loan that no longer shares risk characteristics with a pool and is estimated on its own. |
| Period lock | Freezing a period's data, settings and results once approved so it can be reproduced later. |
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