IFRS 9 Approach
IFRS 9 imparts a forward-looking approach, the main rationale being, provisions must increase in accordance with the actual risk profile of an entity. IASB tackled classification and measurement of financial assets, impairment and hedging separately while other aspects of IAS 39, such as scope, recognition and derecognition of financial assets survived with some minor changes.
IFRS 9 standard, effective from 1 January 2018, affects more than just banks and NBFCs. Any entity can see a significant change in financial reporting because of this standard. Along with cost savings IFRS 9 offers a great opportunity for balance sheet optimization and efficient reporting process.
We have developed a suite of proprietary tools and accelerators to meet the IFRS 9 impairment requirements in each of the above specified areas. Our approach involves diagnostic study as a first step which culminates into designing a customised plan for our clients, and execution of the same to achieve the IFRS 9 compliance in cost-effective & time-bound manner.
A well-defined framework has been created to make the entity capable of an independent audit of IFRS 9 initiatives to provide ‘Quality Assurance’ to the decision-makers and BOD.