IFRS 9
Application supporting the implementation and compliance with IFRS 9
Meet the requirements of IFRS9
The myIFRS9 application allows you to quickly, using a proven/verified methodology, analyze the classification of financial instruments (SPPI test), estimate the expected credit loss write-offs (both using the individual and portfolio method), or measure the fair value of selected instruments.
What is IFRS 9 about?
International Financial Reporting Standard 9 "Financial Instruments" ("IFRS 9") is a standard whose implementation has been one of the biggest challenges in the area of financial reporting for many companies in recent years.
This is because it primarily concerns common asset items on the balance sheet, such as accounts receivable, cash or loans granted, rather than complex financial instruments.
Additionally, IFRS 9 introduces fundamental changes to the classification and measurement of these assets.
We created the myIFRS9 application because we have extensive experience in using this standard and we can significantly facilitate and automate the process of its application.
Functionalities
SPPI Tests
A structured questionnaire that, when answered "Yes" or "No", allows to assess whether a given financial instrument meets the condition of "pay only principal and interest" relevant to its classification under IFRS 9.
Impairment of individual assets – receivables
Based on the invoice repayment data, the tool estimates the expected credit loss for the trade receivables portfolio.
Impairment of individual assets – loans
Based on the financial data of the counterparty, the tool estimates the expected credit loss for individual financial instruments (e.g. loans granted, significant receivables).
Fair value of loans
Based on the financial data about the borrower, the tool estimates the fair value of the loans granted.
Valuation of minority shares
Based on the financial data of the valued company, the tool estimates the significance of the potential difference between the valuation of minority shares using the historical cost method and the fair value method.
Write-offs due to guarantee granted
Based on the financial data of the entity that was granted the guarantee, the tool estimates the expected credit loss on this exposure.
Discount rates
Based on the information provided by the user, the tool estimates the discount rates that can be used, for example, to measure balances resulting from lease payments in accordance with the IFRS16 Leases standard.
WACC
Based on the information provided by the user, the tool estimates the level of the weighted average cost of capital (WACC).
Quick and simple implementation process
The implementation is a very fast process. It requires installation of the tool on users' computers and then activation, which takes no more than a day. After installation, we conduct a workshop for users, which lasts several hours, depending on the range of modules they will use.
Benefits
01
Intuitive handling
The application for IFRS9, based on MS Excel spreadsheets, is easy to use and intuitive for the user.
02
Does not engage IT Team
It does not require installation of any other software or interference by the IT department.
03
Support in use
At the application implementation stage, we provide introductory workshops on the application of the IFRS9 standard, and then additional ongoing consulting.
04
Automatization of calculations
The tool allows you to streamline/improve the calculation process and save time.
05
Documentation
We provide customers with detailed instructions for individual modules, explaining comprehensively the calculation process and functionality of a given module.
06
Proven methodology
The tool was prepared based on the requirements of IFRS 9 and the practical experience of PwC experts.
IFRS 9 introduces a number of changes and new requirements in the field of financial instruments, which apply not only to banks, but also companies from the non-financial industry, because each of them recognizes receivables from sales, and some also other assets covered by IFRS 9.