When financial assets are impaired due to credit losses and a separate account is maintained, an entity should provide a reconciliation for that separate account of the beginning and ending balance for the period for each class of financial assets.

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This is because providing a reconciliation of the beginning and ending balances for each class of financial assets in a separate account for credit losses helps in understanding the changes in the impairment amounts over the period, which is a requirement under financial reporting standards like IFRS 9 and US GAAP. This enhances transparency and provides valuable information to users of financial statements about the credit risk and impairment of financial assets.

When Financial Assets Are Impaired Due to Credit Losses and a Separate