ECL for Trade Receivables
As per the requirements of Ind AS 109 / IFRS 9 every company having trade receivables should compute the expected credit loss using the Simplified Approach mentioned in the Accounting Standard.
Become compliant with the requirements of Ind AS 109 / IFRS 9 using the cloud-based software tool used by several corporate entities
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Why choose RVSBELL Analytics for ECL for Trade Receivables?
Computation:
1. Computation of ECL as per the requirements of the Accounting Standard
1. Computation of ECL as per the requirements of the Accounting Standard
2. Simplified Approach for receivables ECL – recognizes lifetime expected credit loss
3. Determine appropriate groupings of receivables by creating segments based on two dimensions in customer master e.g., Divisions could be Paper, Infotech, Hotel, FMCG and Agri. Departments could be Wholesale, Retail, Institutional and Exports – based on these there the user can have up to 20 segments, if warranted
4. Select the sample period to determine the historical loss percentage
5. Ability to create multiple scenarios for the segments created
6. Apply macro-economic data to get multipliers for different scenarios
7. Determine the probability weights for each scenario to arrive at the probability-weighted expected credit loss
Processing:
1. Processing on the flight- very fast
2. Back-end processing with the load balancing features
3. Downloads provided in excel format
Processing:
1. Processing on the flight- very fast
2. Back-end processing with the load balancing features
3. Downloads provided in excel format
Expected Credit Loss for Trade Receivables is hosted on the world's most trusted cloud-computing service provider
Save time, money, and headaches with our cloud based software tool that needs just a web browser to compute the results
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A: Create segments based on customer master with combinations of Divisions and Departments
B: Determine the sample period that represents the historical loss most accurately
C: Compute the historical loss rate for each segment defined by the user
D: Apply the effect of macro-economic data by setting multipliers for the other two scenarios
E: Determine the probability of each scenario and compute the probability weighted ECL
B: Determine the sample period that represents the historical loss most accurately
C: Compute the historical loss rate for each segment defined by the user
D: Apply the effect of macro-economic data by setting multipliers for the other two scenarios
E: Determine the probability of each scenario and compute the probability weighted ECL
Benefits of cloud-based software
Cloud-based application with full security
Three User Profiles provided in the Customer Portal: Accountant role – Multiple accountants can enter the data.
Each accountant can view or edit the data uploaded by him/her
Manager role – One person responsible for the processed output, who can view and edit all data entered by any accountant.
He/she can process the data and generate all reports Auditor role – One auditor login to view all the input data and reports available in the system.
Can view the entire audit trail for all transactions and processes Dashboard providing details of historical loss percentage, ECL based on multiple scenarios for defined segments
Three User Profiles provided in the Customer Portal: Accountant role – Multiple accountants can enter the data.
Each accountant can view or edit the data uploaded by him/her
Manager role – One person responsible for the processed output, who can view and edit all data entered by any accountant.
He/she can process the data and generate all reports Auditor role – One auditor login to view all the input data and reports available in the system.
Can view the entire audit trail for all transactions and processes Dashboard providing details of historical loss percentage, ECL based on multiple scenarios for defined segments
Upload the data using simple input formats
Upload the raw data covering the customer master, invoices, collections, credit notes and write offs for the last several years
Upload the opening unpaid invoices as the starting point
Define the segments based on the data in customer master
Input the multipliers for various segments
Why RVSBELL Analytics?
Your Ultimate ECL Solution! Streamline your financial processes with our cutting-edge software designed specifically for businesses like yours.
Effortlessly compute Expected Credit Loss (ECL) for trade receivables using the simplified approach. Say goodbye to manual calculations and embrace accurate, automated, and forward-looking credit risk assessments. Stay compliant, make informed decisions, and ensure your financial statements are always on point. Dive into the future of financial analysis with RVSBELL Analytics today!
Effortlessly compute Expected Credit Loss (ECL) for trade receivables using the simplified approach. Say goodbye to manual calculations and embrace accurate, automated, and forward-looking credit risk assessments. Stay compliant, make informed decisions, and ensure your financial statements are always on point. Dive into the future of financial analysis with RVSBELL Analytics today!