TWO-PHASE PAIR CORONA MODEL FOR AGN: PHYSICAL MODELLING AND DIAGNOSTICS by Juri Poutanen, Roland Svensson, and Boris Stern The predictions of the two-phase accretion disc-corona models for active galactic nuclei are compared with observations. We discuss the possibility to use X-ray spectral slopes, equivalent widths of the iron line, and the observed flux-spectral index correlation as diagnostics of the X-$\gamma$-ray source compactness and geometry as well as of the cold disc temperature. As an example of the application of the modelling tools, we use XSPEC to fit the broad-band data of Seyfert 1 galaxy, IC4329A, with a theoretical spectrum from a hemisphere-corona.