Under IFRS, an allowance account must be created reflecting expected lifetime credit losses on all financial instruments.

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Under IFRS 9, an allowance for credit losses must be recognized, but the requirement varies: for some financial instruments, it reflects expected credit losses over the next 12 months, while for others, it reflects lifetime expected credit losses, depending on the credit risk of the instrument.

Under IFRS, an Allowance Account Must Be Created Reflecting Expected