When people hear about IFRS 9, their first thought is often, “That’s something banks deal with.” But in reality, IFRS 9 — the standard that governs how financial instruments are measured and reported — impacts almost every kind of business.
Whether you’re running a retail chain, a manufacturing company, or a growing start-up, chances are you deal with trade receivables, lease receivables, contract assets, or even investments and loans. And under IFRS 9, these financial instruments come with specific reporting requirements, including the need to calculate Expected Credit Losses (ECL).
This is where SHMA comes in.
Making IFRS 9 Compliance Simpler for You
At SHMA, we help businesses of all sizes implement IFRS 9 in a way that’s practical, accurate, and compliant. Our actuarial experts work closely with finance teams to calculate ECLs, design appropriate models, and document every step — so you’re fully prepared for audits and confident in your reporting.
What We Help With
If your business holds trade receivables, contract assets, or lease receivables, we use the simplified approach prescribed by IFRS 9. This includes:
- Calculating lifetime ECLs using provision matrices
- Segmenting receivables based on risk
- Analysing historical default patterns
- Incorporating forward-looking economic data
- Providing full documentation of methodology and assumptions
For companies with loans, debt securities, or other financial instruments, we apply the general approach:
- Estimating 12-month and lifetime ECLs based on exposure stage
- Developing PD, LGD, and EAD models
- Assessing Significant Increases in Credit Risk (SICR)
- Using a three-stage impairment model
- Factoring in macroeconomic scenarios
Why Choose SHMA?
We go beyond the numbers. Our actuaries bring statistical precision, deep regulatory knowledge, and a forward-looking approach. We:
- Build models tailored to your business and portfolio
- Reduce the operational burden on your finance team
- Offer clear, audit-ready documentation
- Provide ongoing support — from implementation to review
IFRS 9 doesn’t have to be overwhelming. Whether you need help designing your first ECL model or reviewing your current process, we’re here to make it manageable and meaningful.
Let’s simplify compliance, together.