Task 2 – Discuss the following concept in detail and find out the value of Expected...

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Accounting

Task 2 – Discuss the following concept in detail andfind out the value of Expected Loss using appropriatemodel.                                                      (3+4 = 7 Marks)

Discuss the Three- Bucket Approach of AssetClassification as per IFRS 9.
                                                                                                                               (3marks)

Alex borrowed OMR 30 million from the Bank Dhofar inthe year 2018. He repaid OMR 8 million excluding interest by 2019.Since 2020 beginning he is suffering losses in his business andmaking irregular repayment on the loan. The bank assumes hisprobability of default to be 0.85. He has given his property as apledge against the loan to the bank. The current market value ofthe property is estimated to be OMR 7.5 million. Calculate Exposureat default and expected loss for the given situation.

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Loan taken amount 30 millions and paid 8 millions amount without interest in 2020 ee company suffering losses and probability of the default is 085 off the balance amount so company pledge his property which has OMR 75 millions Loan amount 30 millions Amount repaid 8 millions Balance amount 22 millions probability of default 085 then amount of default is 187 million See Answer

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