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Expected Credit Loss Tool - IFRS 9, Simplified Approach

Our ECL Tool for exposures under IFRS 9 – Simplified Approach is designed to help financial institutions and businesses accurately calculate expected credit losses with ease and compliance. Built with flexibility and transparency in mind, the tool supports automatic expected ECL curve calculation based on historical data for invoices and payments. It calculates automatically the expected credit loss (ECL) of the exposures using ECL models models of historical loss, which are applied on the balances as of the end of reporting period. It allows for macroeconomic adjustment on the historical ECL curve to reflect the expected future developments.

The tool relies on a detailed approach for ECL calculations with a number of automations, designed to simplify the process. In brief:

The tool can be applied to trade and other short-term receivables, assets driven by contracts with customers under IFRS 15 with no material financial component and lease receivables.
The tool uses historical customer data (invoices and payments) to construct custom ECL models, based extended provision matrix calculatios, that automatically essess the historical loss rates for the relevant portfolios of assets.
The calculated historical models are then applied to the portfolio balances as of the end of reporting period to assess the lifetime ECL.
The tool supports adjusting the ECL curve for expected macroeconomic effects to reflect expected future macroeconomic developments.
All needed inputs (invoices, payments, balances) can be easily importend or exported.from CFO.tools. All calculations (ECL curve, ECL calculations) can be easily exposred from the system.
The tool can work with large volumes of data (over 1m records).

The methodology and the approach of the tool have been consulted with IFRS experts from a leading audit firm.

Advantages:

Fast and easy-to-use
Automated ECL curve calculation
Allows for forward-looking macroeconomic adjustment on ECL
Detailed exposurs of ECL curve and balances with calculated ECLs.

Automated data input for key ECL components (invoices, payments, balances)
Supports easy processing of large volumes of data (over 1m records)
Support and help available thought the process

Are you ready to harness the power of this tool and streamline your financial processes, ensuring compliance and driving better, more informed business decisions?

Expected Credit Loss Tool - IFRS 9, Simplified Approach

The tool relies on a detailed approach for ECL calculations with a number of automations, designed to simplify the process. In brief:

Advantages:

Are you ready to harness the power of this tool and streamline your financial processes, ensuring compliance and driving better, more informed business decisions?

Streamline Your Finance

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