An event or occurrence that gives rise to impairment of an asset or a collection of assets (e.g., financial assets). At reporting dates, an entity assesses whether there is objective evidence on the impairment of a financial asset or a group of financial assets. The financial asset or the group of financial assets is considered impaired and impairment losses are recognized when there is objective evidence on the impairment as a consequence of an event or more events (loss event/s) that occurred after the initial recognition of the asset and such event affects the reliability of the estimated future cash flow of the financial asset or the group of financial assets.

A loss event is triggered by various indicators determining the existence of objective evidence on impairment losses, including significant financial difficulties that the borrower/ debtor runs into, breach of the terms of a loan facility, such as ceased repayments, expectation the borrower would go bankrupt, the impairment of the collateral‘s value, and the deterioration of the credit situation and positions.