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: $150 / report
South African Clients: R2200 (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.
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