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      Question

      Under the Expected Credit Loss (ECL) model, how are

      trade receivables without a significant financing component measured for impairment?
      A Lifetime ECL always. Correct Answer Incorrect Answer
      B 12-month ECL only. Correct Answer Incorrect Answer
      C No impairment required. Correct Answer Incorrect Answer
      D Only when default occurs. Correct Answer Incorrect Answer
      E Based on historical cost. Correct Answer Incorrect Answer

      Solution

      For trade receivables without significant financing, Ind AS 109 requires a lifetime ECL measurement, not just 12-month.

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