Close the allowance

Check the allowance you calculated against the signed accounts before it goes into a note. A difference stays on screen until someone explains it.

Awaiting figures

The signed numbers

Use the same reporting currency and sign convention throughout.

Import trial balance or schedule

Opening allowancePrior signed closing balanceCredit loss charge / (release)Positive is a chargeP&L-only credit itemsIn P&L, not the allowanceWrite-offsNegative reduces the allowanceRecoveriesPositive restores the allowanceFX and classified otherNever use this as a plugWorking closing allowanceYour roll-forward totalBalance-sheet allowanceSigned statement amountCredit loss charge / (release) in the income statementAs the accounts show itGross carrying amountStatement disclosure population

Close verdict

What to know first.

No close has been checked.

Import the signed schedule or enter the figures, then check the close. A blank tie is not evidence that it agrees.

By stage, for the IFRS 9 note

Stages 1, 2 and 3, and assets bought or made already credit-impaired (POCI), must add back to the total in the accounts.

Stage	Gross carrying amount	Allowance
STAGE 1
STAGE 2
STAGE 3
POCI

A proper close has three ties

These three are the minimum. The by-stage schedule above is the next thing to tie.

1. Roll-forward

Opening allowance + charge/release + write-offs + recoveries + FX = closing allowance.

2. Financial statements

The closing allowance agrees to the balance sheet, and the credit loss charge to the income statement.

3. Model population

The selected model run agrees to the signed allowance and gross carrying amount.