Acquired or granted financial assets impaired due to credit risk (POCI) is assets with impairment losses determined at the time of
the initial recognition. The POCI classification does not change over the life of the instrument until derecognition.
POCI assets arise from:
Aktywa POCI powstają w wyniku:
- acquisition of a contract satisfying the definition of POCI (e.g. on combination with another entity or purchase of a portfolio);
- conclusion of a POCI contract on the initial granting (e.g. granting of a loan to a client in a poor financial condition);
- modification of a contract (e.g. in the course of restructuring) resulting in excluding an asset from the statement of financial position and recognizing a new asset satisfying the definition of POCI.
As at the initial recognition, POCI assets are recognized at the fair value, without recognizing allowances for expected credit losses