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Simulated

Increasing Analytics Scophistication

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  • IFRS 9

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SELECT CLIENTS SERVED - ANALYTICS

  • IFRS 9 Expected Credit Loss calculations
  •  IFRS 9 Valuations
  • IFRS 9 Compliance Software
  •  IFRS 9 Audit Resources
  • IFRS 9 Compliance Consultants
  • IFRS 9 Calculation Tool
  • IFRS 9 Software in Pakistan
  • IFRS 9 Financial
  • IFRS 9 Compliance Software
  • IFRS 9 Expected Credit Losses
  • Financial Softwares in Pakistan
  • IFRS 9 ECL
  • IFRS 9 mini
  • ECL Accounting
  • IFRS 9 Estimation Methodology
  • IFRS9-Estimator
  • IFRS Structural Architecture
  • ECL Estimation Methodology
  • IFRS 9 financial liability
  • IFRS 9
  • estimator-structure
  • estimator-9
  • IFRS 9 Standards

Selected clients SERVED - IFRS 9

  • IFRS 9
  • IFRS 9 Software
  • IFRS 9 Compliance Consultants
  • IFRS 9 Valuations
  • IFRS 9 Audit Resources
  • IFRS 9 Software in Pakistan
  • Financial Softwares in Pakistan
  • IFRS 9 Expected Credit Lossese
  • IFRS 9 Calculation Tool
  • IFRS 9 methodologies
  • IFRS 9 Audit Resources
  • IFRS 9 Valuations
  • IFRS 9 financial liability

IFRS 9 – BACKGROUND & METHODOLOGY

Post 2008 financial crisis, regulators around the world realized that history based accounting standards can be extremely misleading and a paradigm shift in accounting methodologies is needed.

In July 2014, IASB issued IFRS 9 standard which replaced existing IAS 39 provisioning method. The IASB stated that the IAS 39 incurred cost method leads to delayed recognition of credit losses, thus a forward looking approach is being introduced.

IFRS 9 became effective worldwide on Jan 2018 and has since then posed huge challenges for accounting firms, auditors and corporations who were neither used to deal with such predictive analytics nor qualified to do so.

ecl estimation methodology

Incurred Loss Provisioning Method under IAS 39 has been replaced by Expected Loss Provisioning Approach of IFRS 9 where provisions are taken upfront and Expected Credit Loss (ECL) is estimated as a product of EAD, PD and LGD.

Definition of EAD is different for each of 3 buckets, term structure of applicable point in time PD is also different for each of 3 buckets of EAD, and LGD is estimated differently for collateralized and non collateralized exposures.

ifrs 9 standards

ecl estimation methodology

PORTFOLIO SEGMENTATION

Segmentation & pooling of portfolio on the basis of discriminant analysis and statistical mass.

MEVS IDENTIFICATION

Identification of statistically significant macro-economic variables for each segment’s default rates.

MES SIMULATIONS

Projections of macro-economic scenarios and assignment of probabilistic weight to each scenario.

BUCKET-WISE EAD ESTIMATION

Distribution of current exposure under each segment into three days past due (DPD) buckets as defined by IFRS 9.

PIT PD ESTIMATION

Estimation of point in time probability of default term structure for each segment of portfolio exposure.

LGD ESTIMATION

Estimation of point in time loss given default distribution for each segment of portfolio exposure.

ESTIMATOR 9 – product features

estimator 9

Provides a comprehensive end to end solution for the estimation of ECL provisions under current IFRS 9 requirements.

Supports all major IT platforms and browsers.

Easy to use & requires minimum data input from its users.

Equally capable of estimating ECL for large input data stream; as well as for a minimum of single quarter’s input data.

Comes with free on-site users training and very strong 4 tier technical support point forward which is available on 24/7 basis.

Provides free software updates as and when IFRS amends or refines its methodology.

Available in 3 versions to cater to varying needs of corporate clients.

ESTIMATOR 9 – product PROFILE

Software Package Features

  • Installation

  • Customization

  • Integration

  • Data Calibration

  • Test Runs

  • Stress Tests

  • Validation

  • User Training

Complete IFRS 9 estimations and disclosures in accordance with Simplified Modeling Method prescribed by Global Public Policy Committee (GPPC) of the representatives of the 6 largest accounting firm in their joint document issued in June 2016.

Comprehensive estimations of EAD, PIT PDs, and LGDs for counter party receivables including Banking and Sovereign receivables.

Strong technical support system with assistance from dedicated helpdesk.

Suitable for financial sector companies including banks, leasing companies, investment banks, mortgage finance houses, insurance companies, investment companies etc.

Customized to comply with reporting requirements under SPB circular 4 of 2019.

Consolidated solution including the software installation, country specific customization, full integration with bank’s internal database systems, and strong on-ground technical support with annual validation services.

Available in 3 versions to cater to varying needs of corporate clients.

estimator 9 - structural architecture

ifrs 9 risk management

In compliance with modeling methodologies agreed in GPPC document jointly published by 6 largest accounting firms.

Extensively tested by the Chartered Accountants worldwide.

Validated by globally renowned quants and verified by clients’ external auditors.

Excel versions of software already in use in over 56 companies across 17 countries.

Comes with free on-site users training and very strong 4 tier technical support point forward which is available on 24/7 basis.

estimator 9 - structural architecture

Technical Assessment

Data assessment
Input & Output assessment

System Analysis

Operational feasibility
Data flow designing

Architecture Design

Process mapping
Schematic designing

System Integration Design

Operational feasibility
Data flow designing

Implementation

System verification
Operational testing

Maintenance

Logistic sanctity checks
Estimation accuracy checks

ifrs 9 meanings

estimator 9 - structural architecture

ifrs 9 structure

LOCAL TEAM

National Client Coordinator
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ESTIMATION SUPPORT

Data Verification
Parametric Validation
Output Interpretation
Disclosure Assistance

TECHINCAL SUPPORT

Trouble Shooting
Anomaly Management
Report Customization
Software Updates