The importance of proper ECL estimation should not be underestimated.
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 under the new HKFRS 9 on Expected Credit Loss: Most Financial Instruments are subject to Expected Credit Loss Assessments under HKFRS 9. ECL typically covers trade receivable, contract assets, loan and other receivables .A Simplified Approach for trade receivable based on a Provision Matrix of Lifetime ECL. A 3-Stage General Approach for loan and other receivables, and as a policy choice for trade and lease receivables with significant financing component. Forward looking economic scenarios and their impacts on a weighted average ECL.
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: Highlights: 1、Quick credit loss insights consolidated from