No, it is not allowed as per IFRS 9.As per IFRS 9 financial instruments that have not had a significant increase in credit
risk since initial recognition or that have low credit risk at the reporting date. For these
assets, 12-month expected credit losses (‘ECL’) are recognised and interest revenue is
calculated on the gross carrying amount of the asset (that is, without deduction for credit
allowance). 12-month ECL are the expected credit losses that result from default events
that are possible within 12 months after the reporting date. It is not the expected cash
Regards shortfalls over the 12-month period but the entire credit loss on an asset weighted by the
probability that the loss will occur in the next 12 months.