aiestes case studies

IFRS 9 - Classification (EN)

Challenge

According to IFRS 9, financial instruments are measured at amortised cost (AC), fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVPL). The decisive factor for this classification is the allocation to the business models Hold (AC), Hold and Sell (FVOCI) or Trade (FVPL). For the categories AC and FVOCI, it must also be determined whether the contractual cash flows represent interest and repayment only ("SPPI"). In addition, numerous options and exceptions must be taken into account. The new classification therefore requires detailed individual contract analyses, definitions of the business models, clarification of questions of interpretation and determination of threshold values, which are to be implemented via suitable processes and IT solutions.

Procedure

  • Contract analysis and technical conception
  • Implementation of operational classification features for (process- and IT-supported) further processing
  • Adaptation of charts of accounts and posting logic
  • Test of the implementation

Result

  • Audit-proof implementation
  • Application of permissible simplifications in contract analysis
  • Consideration of balance sheet and income statement effects in design decisions
  • Consideration of interfaces (e.g. IFRS 9 Impairment)

Skills aietes

  • Systematic contract analysis and practical technical conception
  • Business analysis / interface between business and IT departments
  • Accounting logic IFRS 9
  • Test Management

Your contact

Markus Wittenberg
Markus WittenbergSenior Manager

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+41 78 670 68 19

Reference projects

  • Preparation of technical concept and accounting logic IFRS 9 classification (German credit institution)
  • Test management solely payments of principal and interest / SPPI (Swiss asset manager)