1. What is meant by business model and why is it necessary/essential for the auditor to determine the audit client’s business model for managing its debt investments?

2. What are the reasons for reclassification of debt investments? Discuss the accounting treatment.

3. What is meant by ECL impairment and which of the debt investment classifications are subject to it?

Answer rating: 100% (QA)

1The business model is essentially the clients strategy for managing its debt investments This inclu... View the full answer