Background and Solution
IFRS 9 requires impairments for Trade Receivables to be calculated on an expected credit loss basis (ECL). The calculation of ECL must have the following attributes :
For most companies this will require a significantly different approach to impairment calculation and may require some new skills to apply competently.
The ECL computation is delivered to you in a report which includes the information an entity is required to provide in its financial statements.The report will also include appendices that will include information which your auditor will require to audit the outcome such as a summary of:
Prices are per portfolio report for each year end.
Note that you can revise your portfolio but can only produce one final report per fee.
International Clients: $399 / report
South African Clients: R5,950 (Excl VAT)
Payments are done by secure credit card or EFT (SA Clients only).
The ECL.Calculator assists companies in calculating their IFRS 9 impairment model where they are required or have elected to use the simplified matrix approach for their trade receivables, contract assets and lease receivables. The calculator does not use the 3 stage general model approach.
Yes. The model incorporates forward-looking information such as your countries Gross Domestic Product, inflation, unemployment rates and interest rates to calculate the provision.
The calculator works in numerous counties that are listed in the sign up page. If you country is not listed, contact us and we will update the database to include your country’s relevant economic data.
The calculator produces a detailed report companies can use for their year end IFRS financial reporting. To view an example report, Click Here.
Companies need to use a matrix approach to calculating their impairments. To view the ECL.Calculator process, click on ‘How it works’ tab.
The above can be complex and time consuming for many entities who don’t have in-house experts. In addition, auditors cannot complete these calculations for their clients due to independence restrictions.
We are a multidisciplinary team of JSE-Accredited IFRS specialists with broad experience in assisting listed companies, multinationals and large, state-owned enterprises with their financial reporting.
The depth of our experience and expertise is reflected in the varied industries and numerous markets that we service from South Africa across the African continent to the United Kingdom, Europe, the Middle East and Australia.
Given the complexity of financial reporting standards and the strict independence requirements placed on auditors, we are ideally positioned to directly assist companies with their corporate reporting prerequisites.
Our corporate financiers and valuation experts provide end-to-end transaction support services for mergers and acquisitions. We deliver robust business valuations, probing due diligence services, astute deal structuring advice and other related support services right through to financial reporting support.
Our valuation experts provide a full array of IFRS compliant valuation services covering valuation of financial instruments, long-term environmental and rehabilitation provisions, employee share schemes, as well as purchase price allocation (PPA) valuations of intangible assets such as customers relationships, brands, licenses, etc.
Our team of facilitators are subject matter experts who deliver extensive training programmes on specific areas. We deliver training in South Africa across the rest of the Continent, the United Kingdom and Europe, the Middle East and Australia.
We have the ability to customise our training solutions to suit clients ranging from large multinationals to small businesses. Furthermore, clients are able to access training in different ways by tailoring it to suit their specific needs.
We provide integrated software across various platforms and industries, offering dynamic leading edge solutions which are tailored made to suit your industry.
Our experienced team creates dynamic IT applications that combine learning and technology onto one platform. This integrated solution delivers improved efficiency in the rapid delivery of key information and knowledge.