The IFRS 9 tool is a tool designed to help financial institutions and other organisations calculate the expected credit losses for their financial assets, in accordance with the requirements of the International Financial Reporting Standard (IFRS) 9 Financial Instruments.

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IFRS 9 requires organisations to measure and recognise an ECL for all financial assets that are subject to credit risk, including loans, trade receivables and other debt securities. Using a pre-defined upload template and financial data from the client, the tool can efficiently run large quantities of ECL’s in a short period of time. For corporate models, the tool uses the PD and LGD inputs determined by the Risk Calculator, Global Corporate or our offline credit risk models. For retail portfolios, the ECL is calculated using a best practice approach for determining PD, LGD and EAD, using client data, along with an actuarial process (e.g., Hazard rate).  The hazard rate approach is streamlined within the platform, creating efficiencies for the user through use of technology. The results can be exported to excel for ease of inclusion in working paper documentation.

The IFRS 16 Tool provides an innovative automated solution to help businesses manage and comply with the IFRS 16 lease accounting framework. The IFRS 16 Tool has been developed to provide the following functionality:

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• Calculates the incremental borrowing rate (IBR) using our 3-step high-level calculation whilst leveraging off the Risk Calculator
• Calculates the key lease disclosure inputs (Lease Liability, Right of Use Asset, Interest & Depreciation),
• Allows the user to account for payment holidays, residual guarantees, exit clauses, purchase options and extension options,
• Allows the user to cut the data up for different financial periods and (5) Allows for all runs to be stored in history and accessed.