Ann: Process Update and Request for Suspension Extension, page-94

There has been a tendency for some other posters to think that the figures used by PNC may have been plucked out of nowhere or were created to simply give increased profit by using the FVTPL method to increase the future value of discounted cash flows. Yes they were bringing future cash flows forward using historic modelling allowed under the AASB9 changes. The details of how this was achieved are briefly alluded to on Page 82 of the FY2018 Annual report containing the auditors report. They were even using external experts to assist in setting up a suitable model. So it was based on historic collection figures and other data reflecting possible external influences (ie increased unemployment rates, economy downturns etc).

I repeat that I am not in favour of this form of accounting but modern regulations are more sophisticated and allow for more accuracy in accounting for profit - IMO for P&I type loans only but that is just my take on it. So I agree with you - changes do need to be made on one side of the fence or the other.