IFRS 9 Implementation

Illustration representing Shasat's Global IFRS Desk, highlighting expertise in IFRS, US GAAP, IPSAS, and UK GAAP

 

IFRS 9 Implementations | Classification | Measurement | Derecognition | ECL Modelling | Python-Based Modelling | Data Calibration | Reporting

Shasat Consulting leads the industry in IFRS 9 implementation, delivering unmatched expertise to financial and non-financial institutions globally. We specialize in guiding clients through the complexities of IFRS 9, ensuring seamless transitions and full compliance with global financial reporting standards. Moreover, our deep industry knowledge allows us to simplify complex regulatory requirements while optimizing financial reporting.

With a client-centric approach, Shasat Consulting tailors solutions to meet unique business needs. We focus on minimizing compliance risks and enhancing operational efficiency. Additionally, our team provides end-to-end support, from initial gap analysis to full-scale IFRS 9 implementation and post-implementation reviews.

Furthermore, we leverage advanced methodologies and industry best practices to ensure accurate Expected Credit Loss (ECL) modeling and compliance. Our commitment to precision and strategic insight makes Shasat the ideal partner for mastering IFRS 9 complexities.

 

IFRS 9 – Classifications & Measurement

At the core of IFRS 9 lies the Classification and Measurement of financial instruments—a critical area where Shasat’s expertise is essential. We assist in navigating these complexities by providing strategic insights into classifying and measuring financial assets and liabilities. This ensures full alignment with the standard’s requirements. Moreover, our approach not only ensures compliance but also optimizes the financial statement impact, balancing precision with practicality.

For IFRS 9 implementation, Shasat Consulting adopts a meticulous and structured approach to meet the Classification & Measurement standards effectively. We begin by evaluating your current financial instruments against IFRS 9 criteria. This process ensures proper alignment with the standard. Additionally, our methodical process involves assessing the strategic intent and current classification of your portfolio. We also identify and analyze discrepancies while developing new product classifications if necessary.

Through comprehensive analysis, including business model tests and cash flow characteristics, we ensure accurate categorization of financial assets. These are classified under IFRS 9’s categories: Amortized Cost, Fair Value through Profit or Loss, and Fair Value through Other Comprehensive Income.

Furthermore, we refine valuation methodologies and review related policies to ensure full compliance and integration with your business model. This ensures a seamless transition that incorporates strategic planning, performance management, and operational adjustments. This phase is crucial for laying the groundwork for successful IFRS 9 adoption. Ultimately, we focus on optimizing financial reporting and enhancing strategic decision-making.

 

IFRS 9 Impairment – Expected Credit Loss Modelling

Shasat Consulting streamlines Expected Credit Loss (ECL) model implementation under IFRS 9, transforming credit risk management for financial institutions. We develop robust ECL models using advanced mathematical techniques such as matrices, Monte Carlo simulations, stochastic processes, regression analysis, and time series modeling. Moreover, we integrate these methodologies with cutting-edge technology and deep expertise in building and testing Python-based ECL models. This approach ensures seamless alignment with IFRS 9 standards, enhancing credit loss prediction accuracy and cost-efficiency.

Our services encompass complete ECL implementation, post-implementation reviews, and model optimization. These steps address discrepancies and adapt the model to current and future risks. In addition, with extensive expertise in ECL model development, Python-based modelling, system reviews, scenario planning, and ongoing calibration, Shasat Consulting empowers institutions to strengthen financial frameworks. This process also helps mitigate foreseeable risks.

 

Expected Credit Loss Implementation Approach

From initial assessments to model refinement, Shasat Consulting offers end-to-end support. Partner with Shasat Consulting to simplify IFRS 9 ECL implementation and strengthen your institution’s financial resilience.  Our IFRS 9 ECL implementation focuses on:

  • Data Quality Assessment: We evaluate data accuracy, completeness, and consistency, focusing on rating and credit risk methodologies.
  • Multiple Quantitative Models: We use diverse ECL models tailored to portfolio products, capturing unique risk factors effectively.
  • Impairment Methodology Review: We assess Expected Default (ED), Probability of Default (PD), and Loss Given Default (LGD), ensuring compliance with credit risk policies.
  • Model Development & Validation: We design and validate robust ECL/CECL models aligned with the latest regulations and best practices.
  • Scenario Development: We create economic scenarios, estimating PDs and LGDs to assess impacts under varying market conditions.
  • Testing & Calibration: We run test scenarios and continuously calibrate models to maintain accuracy and relevance.
  • Disclosure & Compliance: We define disclosure requirements for transparent reporting, ensuring compliance with IFRS 9.

Through rigorous analysis and continuous refinement, Shasat ensures your ECL models stay accurate, compliant, and aligned with evolving market conditions.

 

Hedge Accounting

Moreover, Shasat Consulting further extends its prowess into Hedge Accounting, simplifying the adoption of hedge accounting practices under IFRS 9. Our tailored solutions enhance how financial institutions manage and report on hedging activities, ensuring strategies are not only compliant but also effective in mitigating financial risks. We demystify the criteria for hedge accounting, assisting clients in achieving operational efficiencies and strategic objectives.

Shasat Consulting simplifies hedge accounting, making it accessible for organizations to manage market and credit risks, thereby enhancing their risk management strategies to prevent cash losses and financial statement volatility. Recognizing the complexities of hedging, we offer expert assistance in evaluating risk exposures and crafting customized risk management strategies. Our service encompasses setting precise hedge objectives, aligning strategies with your organization’s policies, selecting optimal hedging instruments, and establishing documentation and relationships.

With regular risk assessments and a keen eye on areas needing hedging solutions under IFRS 9, our aim is to minimize income statement fluctuations and ensure regulatory compliance, laying a solid foundation for your financial risk management.

 

Why Shasat Consulting?

Opting for Shasat Consulting equates to aligning with a premier financial consultancy, distinguished by:

  • Profound Expertise: Our team, rich in experience, excels in both qualitative and quantitative modeling for IFRS 9 implementation, showcasing unmatched proficiency.
  • Tailored Solutions: We craft bespoke strategies, finely tuned to each client’s specific requirements, ensuring not only compliance but also a competitive edge.
  • Pre & Post ECL implementation Support: Shasat provides end-to-end support, from initial analysis to post-implementation, ensuring a smooth transition to IFRS 9 standards.

In today’s fast-changing financial landscape, institutions need a partner who masters IFRS 9 and applies it effectively. Shasat Consulting is that partner. We combine deep technical expertise with practical solutions, ensuring seamless IFRS 9 implementation and strategic advantages for your institution.

Moreover, our commitment to excellence, paired with in-depth knowledge of financial instruments, credit loss models, and hedge accounting, sets us apart. We don’t just ensure compliance—we create opportunities for enhanced financial reporting and strategic growth.

Shasat Consulting’s IFRS 9 implementation services blend technical precision, strategic insight, and real-world application. Additionally, we empower financial and non-financial institutions to navigate IFRS 9 complexities confidently. Our approach guarantees compliance, strengthens financial reporting, and supports long-term growth.

Let Shasat be your guide through the intricate journey of IFRS 9 implementation. With our expertise, your institution gains a competitive edge in the evolving world of finance.

 

Contact Us

For questions, support, or information about our IFRS 9, ECL, and CECL Modelling services, please visit our Contact Us page. Our dedicated consulting team is ready to assist with your needs. We ensure you receive all the information required to move forward.  We look forward to hearing from you and are eager to assist in any way we can.