How do you determine the debtors' impairment?

Question

I know that IAS 39 does not allow general provisions on debtors' age analysis but we need to test for impairment. But how do you determine the debtors' impairment? What is the technique that can be used?

Answer 1

This is already answered here:
http://***.ifrsanswer.***/1/general-provision-for-doubtful-debts

In short,you can use techniques like *** flow rate method, Vintage loss curve method & Score distribution method. *** flow rate method seems more popular.

Answer 2

Example debtor impairment computation on *** flow rate available here:
http://***.ifrsanswer.***/member-uploads/debtors-impairment-example.xlsx