Expected Credit Loss (ECL) Valuations | IndAS 109 | IFRS 9
IFRS 9 / IndAS 109 introduces new requirements for impairments of financial assets using an expected credit loss (ECL) model instead of the incurred loss model required under IAS 39. Under IFRS 9, entities must allow for future losses, even if no loss event has yet occurred. It's important to note that the calculation of ECL involves the use of historical information, current conditions, and reasonable and supportable forecasts. The process may require complex modeling and statistical techniques. A simplified approach is used for certain assets including trade receivables where there is no significant financing component.
ECL on Trade Receivables
We also offer solution for calculating expected credit losses (ECL) on Trade Receivables for corporates. This is a quick and painless and professional way for non-financial companies to take care of the burden of impairment calculations for IFRS 9, by professionals who are trained to understand risk and uncertainty.
By submitting your historic sales and receipts data or aging reports into our valuation model, combined with suitable macroeconomic data, we generate a report ready for use by your auditors for preparing your financial statements.
Here's how we can help you:
Expert insights: We have a deep understanding of IFRS 9 and its nuances, ensuring your ECL calculations are compliant and accurate.
Streamlined processes: We leverage specialized tools and methodologies to make the process efficient and cost-effective for you.
Improved financial transparency: Transparent and accurate ECLs enhance your financial disclosures and stakeholder confidence.
Reduced risk of penalties: Avoid potential regulatory penalties by having your ECLs calculated by qualified professionals.
What sets us apart?
Tailored approach: We don't believe in one-size-fits-all solutions. We tailor our approach to your specific industry, business model, and credit risk profile.
Collaborative teamwork: We work closely with you throughout the process, ensuring your understanding and providing expert guidance every step of the way.
Commitment to excellence: We are dedicated to exceeding your expectations and delivering exceptional service.