IFRS Alerts covering the latest International Financial Reporting Standards (IFRS), Interpretations of Standards (IFRIC) or amendments to existing IFRS Standards published by the International Accounting Standards Board (IASB).
The client is one of the largest non-banking financial services companies in India, with a focus on loans to the power sector.
We implemented the ECL model and converted their financials to the Indian Accounting Standards (Ind AS), which is a converged IFRS.
The following activities were performed in ECL implementation:
- Setting up ECL policy and advised on decisions such as default definition, SICR criteria etc
- Prepared the methodology documents for ECL and its risk components i.e. PD, LGD and EAD.
- Computation of historical PD and converting it into forward looking PD using macroeconomic forecasts and scenario analysis.
- Computation of LGD as per the methodology
- Computation of EAD and applied the staging criteria on the portfolio
- Created the ECL model and set up the process for independent use by the management
- Prepared the ECL and credit risk disclosures in the financial statements
About our team
Chetan has more than 16 years of experience in servicing large national and multinational clients in the areas of Assurance, Indian GAAP, US GAAP and IFRS technical accounting advisory, specifically in the areas of financial instruments, leases, consolidation, revenue recognition, business combinations, and cryptoassets/ cryptocurrencies.
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Get Ready for IFRS 18: Enhancing Financial Statement Clarity
The International Accounting Standards Board (IASB) has introduced IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1, aiming to improve communication and comparability in financial statements. Effective for reporting periods beginning on or after 1 January 2027, IFRS 18 introduces substantial changes, particularly in the statement of profit or loss, to address the lack of detailed guidance in the previous standard.
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2 min read
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03 Dec 2024
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