According to IFRS 9, reserves for credit losses shall be made directly when a credit is issued, instead of as previously, when there is an indication of increased credit risk. This results in earlier and higher recognition of reserves for credit losses than before, but it will not affect cash flow or underlying credit risk.
The Qliro Financial Services balance sheet year-end 2017 included accumulated reserves of SEK 31 million for future credit losses. In the opening balance of 2018, the reserves will increase by SEK 24 million due to the transition to IFRS 9. Most of the additional reserves stems from credits where at year-end there was no indication of impaired payment ability, and for which no provision had been made in accordance with previous accounting rules.
From 1 January, reserves for projected credit losses will be made directly when credit is issued.