With the mandated adoption and implementation timeline of 2018, the expectation from enterprises is to manage a smooth transition, preferably with a buffer for parallel run, skill-set development and testing of any new or modified solutions which shall be adopted in the transition process.
We have developed our structured approach to address the three main focus areas, namely: Classification & Measurement, Impairment Models and Hedge Accounting. Our structured framework consists of the following two phases:
- Gap and Impact Assessment
- Implementation Roadmap
As a starting point, Gap and Impact assessment phase will focus on the following areas:
- Review of existing policies and procedures related to accounting, model landscape, credit policy, hedging strategies and disclosures;
- Classification of instruments on the basis of the business model and cash flow characteristics;
- Review of provisioning framework and models;
- Review of data systems and IT architecture;
- Assessment of the existing practices and crystallization of the new requirements.
The phase will conclude with an implementation roadmap to document the process, procedures, impairment model framework and other related changes envisaged to ensure compliance with Hedge accounting and Classification and the related requirements in terms of people, system, skill-set and time.
We aim to simplify the entire journey of IFRS 9 implementation with Aptivaa’s LEO suite of proprietary tools & frameworks for Loss Estimation. These are designed to accelerate IFRS-9 implementation in areas such as classification, stage evaluation, PIT-PD Calibration, Lifetime-PD, LGD, EAD and Lifetime ECL.