Athena Limited owns a portfolio of debt securities that are measured at amortised cost . In evaluating how it will account for the impairment of these assets , the following information is collected :

$ 2.5 million of the portfolio is invested in high - grade government bonds .

$ 1.5 million of the portfolio is invested in lower grade corporate debt securitiess. Of the $ 1.5 million , 10 % have recently suffered a significant increase in credit risk .

When applying the impairment provisions of IFRS 9 Financial Instruments , which of the following statements is correct ?

A Athena may adopt low credit risk simplification for the $ 4 million portfolio provided there has not been a significant increase in credit risk since initial recognition .

B . Athena should calculate lifetime expected credit losses on the $ 1.5 million portion of the portfolio invested in lower grade corporate debt securities as they have a higher credit risk than the high - grade government bonds .

C . Athena will be required to recognise lifetime expected credit losses on $ 150,000 of the corporate debt securities portfolio and 12 - month expected credit losses for the remainder of this corporate debt securities portfolio .

D . Athena will be required to calculate interest revenue for the $ 1.35 million portion of the portfolio invested in lower grade corporate debt securities based on its net carrying amount.