Valtech is highly experienced in ECL advisory sector. We have developed comprehensive assessment model, workflow and data solutions to provide advice on handling the estimation and disclosures in accordance with HKFRS 9 / IFRS 9. Our scope of services is listed below:
1. Full expected credit loss assessment
In order to fulfill the standard’s requirements, we will provide assistance on staging handling, classification of significant increase in credit risk (SICR), assessment of historical information such as loss rates across past due status and sampling etc.
2. Forward-looking factors assessment
The standard requires the use forward-looking information without undue cost or effort. Subject to clients’ auditor view and clients’ accounting policy, we provide different kind of methods to incorporate forward-looking factors in ECL assessment. Regression on multiple factors and non-linear regression are commonly used to provide better estimation.
3. Collective assessment for loan receivables
4. Establishing expected credit loss management policies for IPO
5. Credit assessment for estimation of default and loss given defaults
6. Establishing internal rating models
7. Data analytics of industry specific benchmarks
8. Financial guarantees assessment
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