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Provision for bad debt is made under local gap, now that the each debtor should be tested for impairment, what happens to the bad debt earlier provided for before the adoption of ifrs.

Thank you
in IAS 36 - Impairment of Assets by
edited by

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You need to reverse the provisions made under local GAAP. If the provision had been made in the previous year, then adjust it from the retained earnings.
Entries if the provision had been made in a previous year
DR Provision for impairment (B/S)
CR Retained Earnings (B/S)

If the provision is made in the current year
DR Provision for impairment (B/S)
CR Impairment expenses (P&L)

Hope this answers your issue.
by Level 2 Member (2.8k points)