The tool is used to estimate the lifetime Expected Credit Loss (ECL) of instruments within the scope of IFRS 9 Simplified Approach, including:

  • Trade and other short-term receivables
  • Assets driven by contracts with customers under IFRS 15 with no material financial component
  • Leasing receivables.

The analysis is performed by constructing a form of the so-called "provisioning matrix, which in our tool is estimated in detail on a daily basis, taking into account statistical analyses (survival analyses, logit models and fractional response models) on invoices, payments and default rates for a sample of historical data. The necessary information is entered automatically based on data exports from the accounting systems.

The tool generates an (illustrative) Expected Credit Loss Curve, as an illustration of the ECL rates for a given portfolio of clients over time. These expected loss rates are adjusted for macroeconomic factors and applied to the receivable balances to determine the total credit loss.

The following graph illustrates the results of an ECL assessment through a credit loss curve based on our tool.

The methodology and the approach of the tool have been consulted with IFRS 9 experts at AFA, a leading audit and consulting company.


  • Historical data based ECL
  • Detail of the analysis
  • Automated data entry
  • Macro-factor and forecast correction options
  • Opportunities to perform analyses on a portfolio basis, by product / service, geographical scope, etc.
  • Speed of work
  • Efficiency
  • The results of the analysis can also be used in the day-to-day work of the CFO, for example to track and control collection, decision-making, and more.