IFRS 18 is the new financial statements presentation and disclosure standard and this will replace the existing IAS 1 'Presentation of Financial Statements' standard that has been in use for many years.
The client is one of the largest non-banking financial services companies in India, with a focus on loans to the power sector.
We implemented the ECL model and converted their financials to the Indian Accounting Standards (Ind AS), which is a converged IFRS.
The following activities were performed in ECL implementation:
- Setting up ECL policy and advised on decisions such as default definition, SICR criteria etc
- Prepared the methodology documents for ECL and its risk components i.e. PD, LGD and EAD.
- Computation of historical PD and converting it into forward looking PD using macroeconomic forecasts and scenario analysis.
- Computation of LGD as per the methodology
- Computation of EAD and applied the staging criteria on the portfolio
- Created the ECL model and set up the process for independent use by the management
- Prepared the ECL and credit risk disclosures in the financial statements
About our team
Chetan has more than 16 years of experience in servicing large national and multinational clients in the areas of Assurance, Indian GAAP, US GAAP and IFRS technical accounting advisory, specifically in the areas of financial instruments, leases, consolidation, revenue recognition, business combinations, and cryptoassets/ cryptocurrencies.
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