IFRS 9 Implementation


Shasat Consulting stands as the vanguard of financial consultancy, offering unparalleled IFRS 9 implementation services to both financial and non-financial institutions worldwide. Our esteemed consultancy is dedicated to guiding clients through the complexities of IFRS 9, ensuring a seamless transition and compliance with global financial reporting standards.

IFRS 9 – Classifications & Measurement

At the core of IFRS 9 lies the Classification and Measurement of financial instruments—a critical aspect where Shasat’s expertise is required. We assist in navigating these waters by providing strategic insights into how financial assets and liabilities should be classified and measured, ensuring alignment with the standard’s requirements. Our approach not only adheres to compliance but also optimizes financial statement impact, balancing precision with practicality.

Our IFRS 9 implementation strategy, Shasat Consulting adopts a meticulous and structured approach to meet the Classification & Measurement standards effectively. We begin by evaluating your current financial instruments against IFRS 9 criteria to ensure proper alignment. Our methodical process involves assessing the strategic intent and current classification of your portfolio, identifying and analyzing any discrepancies, and developing new product classifications if necessary. Through a comprehensive analysis, including business model tests and cash flow characteristics, we ensure that financial assets are accurately categorized according to IFRS 9’s Amortized Cost, Fair Value through Profit or Loss, and Fair Value through Other Comprehensive Income categories.

We also refine valuation methodologies and review related policies to ensure full compliance and integration with your business model, aiming for a seamless transition that incorporates strategic planning, performance management, and operations adjustments. This phase is critical for laying the groundwork for successful IFRS 9 adoption, focusing on optimizing financial reporting and enhancing strategic decision-making.


IFRS 9 Impairment – Expected Credit Loss Modelling

Shasat Consulting’s approach to implementing the Expected Credit Loss (ECL) model under IFRS 9 is designed to revolutionize credit risk management for financial institutions. By integrating sophisticated methodologies and leveraging cutting-edge technology, we ensure a seamless alignment with IFRS 9 standards, enhancing the accuracy of credit loss predictions and ensuring cost-effectiveness. Our service extends beyond implementation to include post-implementation review and modifications, addressing any discrepancies and optimizing the model to reflect current and future risks accurately.

Through our comprehensive ECL model development and meticulous system reviews, Shasat Consulting empowers institutions to build a robust financial framework, mitigating foreseeable risks while establishing a safety buffer. Our dedicated team offers unparalleled support and expertise, guiding clients through each step of the ECL process, from initial assessment and gap analysis to model development, scenario planning, and ongoing calibration.   Choose Shasat Consulting for a strategic partner in navigating the complexities of ECL implementation and enhancing your institution’s financial resilience.

Shasat Consulting’s strategic approach to Expected Credit Loss (ECL) model implementation under IFRS 9 emphasizes:

Assess Data Quality: The quality of data is paramount to the success of our impairment model. We will conduct a comprehensive assessment of our data, focusing on factors such as data accuracy, completeness, and consistency, with special attention to the rating and credit risk methodology in place.

Multiple quantitative Models: In refining our approach to Expected Credit Loss (ECL) modeling, Shasat Consulting employs a multifaceted strategy, integrating a suite of quantitative ECL models customized for diverse portfolio products. This method ensures a precise grasp of each product’s unique risk factors.

Our evaluation encompasses a detailed review of existing impairment methodologies, scrutinizing Expected Default (ED), Probability of Default (PD), Loss Given Default (LGD), and aligning with our robust Credit Risk policy. This foundational analysis paves the way for targeted improvements, enhancing our ECL modeling’s precision and effectiveness.

Develop and Validate New Models: Developing and validating new impairment models (ECL or CECL) is a critical step. Our team will work on creating robust models that align with the latest regulatory requirements and best practices, ensuring accuracy and reliability.

Develop Probable Scenarios: We will develop probable scenarios, Probability of Default (PDs), and Loss Given Default (LGDs) to assess the potential impact on our portfolio under various economic conditions and scenarios.

Conduct Test Runs: Test runs will be conducted to evaluate the effectiveness of our new impairment models and scenarios. This phase allows us to fine-tune and validate our models further.

Consider Dependencies and Impacts: We will assess the dependencies of this project with other ongoing group projects and evaluate the potential impacts on our capital and budgets to ensure alignment and seamless integration.

Determine Disclosure Requirements: Identifying the disclosure requirements is crucial for transparent reporting. We will determine what information needs to be disclosed to stakeholders and regulatory bodies.

Plan Communications: Effective communication with users, stakeholders, and relevant parties is essential. We will plan a communication strategy to ensure that everyone is informed and prepared for the changes.

Training and Knowledge Transfer: Providing training to our team members and ensuring knowledge transfer is essential to the successful implementation of the new impairment models. This step will empower our staff to effectively use and maintain these models.

Undertake Model Calibration: Model calibration is an ongoing process that may span multiple quarters. It involves aligning our models with real-life impairment experiences and continuously adjusting them to ensure accuracy and relevance.

Post Implementation Review: Shasat Consulting’s post-implementation review and adjustment process for ECL models is vital for ensuring continuous accuracy and compliance with IFRS 9. This approach includes annual validation and revisions, focusing on model back-testing, reviewing assumptions, assessing macroeconomic model parameters, and making necessary adjustments based on new data or changing economic conditions.

Through rigorous analysis and ongoing revisions, Shasat ensures the ECL models remain effective, reflecting the latest market conditions and regulatory standards, thus supporting your organization’s financial integrity and compliance.


Hedge Accounting

Shasat Consulting further extends its prowess into Hedge Accounting, simplifying the adoption of hedge accounting practices under IFRS 9. Our tailored solutions enhance how financial institutions manage and report on hedging activities, ensuring strategies are not only compliant but also effective in mitigating financial risks. We demystify the criteria for hedge accounting, assisting clients in achieving operational efficiencies and strategic objectives.

Shasat Consulting simplifies hedge accounting, making it accessible for organizations to manage market and credit risks, thereby enhancing their risk management strategies to prevent cash losses and financial statement volatility. Recognizing the complexities of hedging, we offer expert assistance in evaluating risk exposures and crafting customized risk management strategies. Our service encompasses setting precise hedge objectives, aligning strategies with your organization’s policies, selecting optimal hedging instruments, and establishing documentation and relationships.

With regular risk assessments and a keen eye on areas needing hedging solutions under IFRS 9, our aim is to minimize income statement fluctuations and ensure regulatory compliance, laying a solid foundation for your financial risk management.


Why Shasat Consulting?

Opting for Shasat Consulting equates to aligning with a premier financial consultancy, distinguished by:

Profound Expertise: Our team, rich in experience, excels in both qualitative and quantitative modeling for IFRS 9 implementation, showcasing unmatched proficiency.

Tailored Solutions: We craft bespoke strategies, finely tuned to each client’s specific requirements, ensuring not only compliance but also a competitive edge.

Pre & Post ECL implementations Support: Shasat’s commitment spans from the preliminary analysis to post-implementation, offering comprehensive assistance to facilitate a seamless transition to IFRS 9 standards.

In today’s rapidly evolving financial landscape, institutions require a partner that not only understands the technicalities of IFRS 9 but can also apply this knowledge practically and effectively. Shasat Consulting is that partner. Our commitment to excellence, combined with a deep understanding of financial instruments, credit loss models, and hedge accounting, positions us to offer services that are not just compliant, but also strategically advantageous.

Shasat Consulting‘s IFRS 9 implementation services embody a blend of strong technical excellence, strategic insight, and practical application. We empower financial and non-financial institutions to navigate the complexities of IFRS 9 with confidence, ensuring compliance, enhancing financial reporting, and fostering strategic growth. Let Shasat be your guide in the intricate journey of IFRS 9 implementation, where our expertise becomes your advantage in the competitive world of finance.


Contact Us

For questions, support, or to learn more about our IFRS 9 and ECL & CECL Modelling services, please reach out to us. Connect with us through our Contact Us page, where you can find various ways to get in touch, including email, phone, or a convenient contact form. Our dedicated consulting team is ready to support you with your needs and ensure you have all the information required to move forward. We look forward to hearing from you and are eager to assist in any way we can.