NeoXam IFRS 9

IFRS 9 is much more than an upgrade from IAS 39, it’s a major shift in international accounting practices

Overview

Challenges of IFRS9 go beyond a change of accounting principles and require significant changes in accounting and financial information system and process

Key Benefits

Anticipate and get ready for IFRS9 with NeoXamNeoXam Manager will guarantee future flexibility

Multi-accounting

Readily handle multi-accounting standards at the same time with single trade processing

Increase capabilities

Fully manage at trade level IFRS9 context (business model, financial asset classification, SPPI, rating from agencies, bucket) to increase accounting and audit trail capability

Flexibility

Be highly flexible in portfolios organizational structures while managing multi business model and multi asset-classification portfolios and sub-portfolios

Key Features

Support debt investment

Perfectly and natively support debt investment having tax lots in different buckets for impairment processing while accounting needs to be processed globally

Simplify reporting

Largely simplifies your processing on reporting date by relying on a fully embedded Expected Credit Loss impairment solution

Increase financial and accounting analysis

Easily increase financial and accounting analysis and controls with trial balances segregating figures per bucket, per accounting classification and per financial asset (analytical accounting)

Business Challenge

The new classification of financial assets could result in an increase of the income statement volatility

New procedures are required to monitor an increased volume of impairments on all debts that are not measured at fair value through profit and loss

The impairment since initial recognition based on probability of default (ex-ante model) requires changes in accounting and financial information system

Much more historical and risk data is required to measure changes in credit-risk assessment and to review impairments at each reporting date

Complex calculations have to be done within short timescales and using a large amount of data

Market Challenges

Financial institutions will be greatly impacted:

The classification and measurement of financial assets

The introduction of a new Expected Credit Loss impairment framework

The overhaul of hedge accounting models to better align the accounting treatment with risk management

News 13th Jan 2020