Stress Test Data Framework Dictionary 2021: Version 02

IFRS9stage

Enumeration Definition
No stage classification For some exposures such as for acceptances and operational leases and structured finance exposures that are held at fair value through profit or loss and for trading these should be reported with no stage classification.
Stage 1 Financial instruments that are classified as Stage 1 (performing) under IFRS 9. At this point 12 month expected credit losses are recognised and interest revenue is calculated on the gross carrying amount of the asset.
Stage 2 Financial instruments that are classified as Stage 2 (under performing) under IFRS 9. At this point lifetime expected credit losses are recognised and interest revenue is calculated on the gross carrying amount of the asset.
Stage 3 Financial instruments that are classified as Stage 3 (non performing) under IFRS 9. At this point lifetime expected credit losses are recognised and interest revenue is calculated on the net carrying amount of the asset.