U.S. Securities and Exchange Commission’s Post

🚀 introRisk's Dual-Standard ECL Calculation 🚀 In the realm of accounting and financial reporting, two titans stand tall: IFRS 9 and US GAAP. Each framework has its own approach to calculating Expected Credit Loss (ECL), presenting unique challenges and nuances for financial institutions worldwide. 🌐 IFRS 9 emphasizes a forward-looking model, recognizing credit losses earlier and reflecting a more dynamic credit risk perspective. Its ECL calculations require a staged approach and incorporate a broader spectrum of information, including macroeconomic forecasts. 🇺🇸 US GAAP, under the Current Expected Credit Loss (CECL) model, takes a different path, demanding lifetime expected credit losses to be recorded upon financial instruments' recognition, providing a more conservative view on credit risk. The differences can seem daunting, but our state-of-the-art system at introRisk elegantly bridges this gap. Designed to seamlessly conform to both IFRS 9 and US GAAP standards, our system ensures your ECL calculations are compliant, precise, and perfectly aligned with global financial reporting requirements. 💡 Whether you operate under the principles-based approach of IFRS or the detailed guidance of US GAAP, introRisk has got you covered. Our adaptive technology is built for compatibility, ensuring you're equipped for accuracy in ECL computation regardless of the standard you follow. 🤝 Discover a unified solution for a diversified financial world with introRisk. #ECLCalculation #IFRS9 #USGAAP #FinancialReporting #CreditRisk #FintechInnovation #Compliance #introRisk www.introrisk.com

Completed refresher course on IFRS 9 including ECL Modelling from LEXICON covering in detail the technical aspects relating to initial recognition and subsequent classification / measurement of Financial assets & liabilities, recording impairment of Financial assets through Expected Credit Losses (ECL) model using Probability of default approach discussing in detail the Exposure at Default (EAD), Probability of Default (PD) and Loss given Default (LGD) with the help of practical examples / case studies.

FASB staff issues proposed Taxonomy Implementation Guides for 2024 U.S. GAAP Financial Reporting Taxonomy https://buff.ly/3uciw0j #XBRL #FASB #USGAAP #leaseaccounting

International Financial Reporting Standard (IFRS) Prospects and Challenges #AccountingStandards #IFRS #GAAP #FinancialReporting

Manual IFRS 9 compliance got you down? Ditch the spreadsheets and automate with Estimator9! Accurate ECL calculations, automated impairment testing, and comprehensive reporting. Say goodbye to manual errors and hello to efficient financial reporting! sales@fineit.io info@fineit.io #IFRS9 #FinancialInstitutions #ComplianceSolutions #AutomateWithEstimator9 #FinancialReporting #RiskManagement

Interesting thing about conducting first year's (financial reporting) application studies, is that it tells us something about organizational behavior. Contrary to IFRS 15, DAS 221/270R gave companies a wide variety of transition options: prospective, partial retrospective and retrospective. And it appears that large majority choose for the least burdening option: the prospective one. Only contracts entered after 1 Jan 2022 will then fall under the new guidance and therefore no impact on equity at all. A poll under the participants of the NBA webinar showed that the majority was not in favor of this variety. Effect of the new requirements will appear over time when grandfathered contracts will be completed and new ones will start. This makes it more difficult to compare companies. The revised presentation requirements (not allowed anymore to net the balances of the projects in the balance sheet) are well met. That has led to a significant change in solvency ratio's. Other interesting results, recommendations to the Raad voor de Jaarverslaggeving and best practices* in this relevant area, can be found in the full text of the article that Roy van Duuren and I wrote. (* special compliments for Bouwbedrijf M.J. de Nijs en Zonen B.V. for providing several best practices). Free accessible as per the following link:

The IASB has published an exposure draft, which proposes amendments for how entities determine whether financial instruments are classified as equity or financial liabilities, along with changes to presentation and disclosures. This exposure draft could significantly affect entities, particularly those that obtain finance from more complex financial instruments. Read BDO’s web article for further information: https://lnkd.in/d4W_9RDi

Let's Explore Viable U.S. #financialreporting #options! Here’s some great news for #accountants and #auditors of small-to-medium-sized privately-held #businesses in the #usa: #usgaap is not the final word of financial reporting and #disclosure! Over the last two decades, #financialstatement #preparers and #users have sought practical #solutions to provide #highquality financial reporting results without the complications of U.S. GAAP. With the issuance of ASC Topic 606 - #revenuerecognition, ASC Topic 842 - #leases (became effective last year) and ASC Topic 326 - #expected #credit #losses (will be effective this year), #usgaap will be more challenging and disclosures will increase dramatically! Fortunately, #alternative financial reporting #frameworks do exist. It’s just a matter of performing adequate #duediligence to decipher which alternative framework works best for your clients. Take a read of our Industry Guide to learn more - https://bit.ly/3PVIYlI

IFRS 7 Financial Instruments: Disclosures- IFRS 7 requires entities to disclose information about their financial instruments. The aim is to give users of financial statements meaningful information about the valuations and methodologies companies use to help them understand the uncertainty associated with fair value measurement and liquidity risk. The core disclosure requirements under this standard can be split into two sections: 1)   Information about the significance of financial instruments; and 2)   Information about the nature and extent of risks arising from financial instruments. 

IFRS 9 Financial Instruments has been in force since 2018 but it can still be challenging to decide how to classify non-equity financial assets. The article included in the link below summarises in a simple table the different options. I hope everyone finds it helpful.