Expected Credit Losses and Risk Disclosure in Financial Asset Reporting by Non-Financial Companies

An integrated framework is developed for classifying and measuring financial assets, recognising expected credit losses (ECL), and disclosing financial risk in non-financial entities. Its design is based on the requirements of International Financial Reporting Standard 9 Financial Instruments (IFRS 9) and International Financial Reporting Standard 7 Financial Instruments: Disclosures (IFRS 7). The framework links contractual cash-flow characteristics, business models, measurement categories, impairment approaches, and risk disclosures in a single sequential procedure. Its applicability is examined using publicly available 2024 annual reports of ten large non-financial corporations from multiple sectors. A ten-indicator index is constructed to assess public traceability between accounting policies, loss allowances, trade-receivable information, forward-looking assumptions, and credit-risk disclosures. The application yields an average integration score of 94.00%, with stronger reporting for financial-asset categories, accounting policies, trade receivables, and the general or simplified ECL approach. More limited traceability is observed for the methods used to incorporate forward-looking information and for detailed provision-matrix disclosures. The framework is intended as a structured procedure for analysing public financial statements when internal credit-risk databases and model inputs are unavailable. Its contribution lies in integrating classification, subsequent measurement, impairment, and disclosure rather than treating them as separate compliance tasks. The proposed sequence can support accounting policy design, audit documentation, and comparative disclosure analysis. The index should be interpreted as a measure of reporting traceability rather than the economic accuracy of entities’ internal credit-risk estimates.