Artículo B5.5.43. IFRS 9 Paragraph B5.5.43

For lifetime expected credit losses , an entity shall estimate the risk of a default occurring on the financial instrument during its expected life. 12‑month expected credit losses are a portion of the lifetime expected credit losses and represent the lifetime cash shortfalls that will result if a default occurs in the 12 months after the reporting date (or a shorter period if the expected life of a financial instrument is less than 12 months), weighted by the probability of that default occurring. Thus, 12‑month expected credit losses are neither the lifetime expected credit losses that an entity will incur on financial instruments that it predicts will default in the next 12 months nor the cash shortfalls that are predicted over the next 12 months. [ Refer: paragraph 5.5.5 and Basis for Conclusions paragraphs BC5.195⁠–⁠BC5.199 ]