A flexible solution for an efficient transition to this new standard
Year 2018 will be remarkable for European financial sector industry as a first reporting date to present financial statement according to International Financial Reporting Standard 9 “Financial instruments” (Replacement of IAS 39). This change brings many challenges to all members of financial market.
Time constrains created need for a tactical IFRS 9 solution: rapid to implement, agile for modifications and ongoing adjustments, and supporting controlled calculation process.
fLITE@ is the tactical IFRS9 solution, developed by Deloitte, incorporating experience of Deloitte IFRS 9 experts group and Finevare@ – the IFRS9/IAS39 Deloitte tool, being implemented on dozens of clients, and present on the market for over a decade. Expectations to a tactical solution that are fully represented in fLITE@ include : (1) flexibility of the calculation engine adjustable to your specificities; (2) easiness of implementation and short implementation timeline of 1 to 2 months until the moment of first calculation; (3) auditability of calculations
Implementation of a first calculation in fLITE@ requires less than 1 month, which allows meeting Jan 2018 deadline and gives time for a parallel run in 2018. fLITE@ can stay as the solution for smaller institutions, or be replaced by a tactical software in 1-2 years. Transition path to Finevare@ Enterprise version is supported as well.
fLITE@ key facilitators
- fLITE@ supports basic IFRS 9 calculations: ECL (segmentation in 3 stages and multi-scenario approach for both collective and individual assessment), C&M (basic classification, SPPI questionnaire, automated bonds classification, Amortized Cost measurement, EIR), and multiple add-ons to facilitate implementation process (e.g. repayment schedule generator).
- fLITE@ can swiftly absorb changing methodology and modelling results, as the configuration and models can be adapted promptly. If required, it may be used to support the modelling exercise, also.
- fLITE@ includes configurable rules for data quality checks that help to identify errors and to work on imperfect data inputs, which may significantly speed up implementation process.
- fLITE@ supports repeatable, auditable process of reporting, simulation, or ad-hoc calculations.
- fLITE@ is embedding visualization capabilities for discussions with governance.
fLITE@ is a member of Finevare@ family – a comprehensive industry-strength software solution dedicated to support banks in their transition to IFRS 9. Throughout the last decade, the Finevare@ platform has developed a significant footprint in EMEA and serves over 80 entities in more than 40 countries. Deloitte owned Finevare@ software is present on the market for over a decade.