Valtech has prepared an exclusive tool to assist HKFRS 9 preparers to measure their expected credit loss rates based on empirical data and prevailing industry insights across various industries. Let’s take the following three industries as examples, being a typical auto component manufacturer, a consumer product distributor and a power supply company as follows:
ECL Highlights:
1、Quick credit loss insights consolidated from public disclosures of thousands listed companies across
Asian markets to support management’s ECL analysis and auditor’s reference.
2、Instant access to empirical loss distributions on trade receivables from various sectors and industries.
3、Benchmarking analysis on your historical default rates against the industry average
4、Forward-looking adjustments implied from the latest marco-economic and industry specific moves.
5、Tailored professional services to map the market insights to your HKFRS 9 ECL matrix and risk policies.
We map the supportable market insights onto your ECL Assessment!
Our professional team helps you to with the following time-consuming HKFRS 9 workflow:
1、Segment your various types of financial assets into explainable risk baskets.
2、Analyse the risk nature, historical default frequency and magnitude of each of the risk baskets.
3、Map the industry insights and forward-looking adjustments onto your historical records.
4、Estimate the 12-month ECLs and life-time ECLs for various risk baskets.
5、Summarise the ECLs in a provision matrix (under the simplified approach) and/or a 3-stage risk
allowance matrix (under the general approach).
6、Benchmark the overall ECL result against empirical market data and researches.
7、Communicate the result to management and the company’s auditors.
8、Summarise the risk findings in tables and infographics for potential areas of improvements.
9、Assist management to compile a comprehensive ECL policy for ongoing ECL monitoring.
About Valtech Valuation
Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The firm is renowned for its expertise in advanced valuation techniques, customized valuation models, data-driven insights, and adherence to compliance and reporting standards. The firm has a solid track record in valuation advisory for listed companies, private equity, fund managers, and financial institutions. Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.
