Ernst&Young and Slovenian Insurance Association, representing insurers active on the capital markets, held an IFRS9 workshop in Ljubljana, concerning the business impact of the upcoming new international accounting standard. Our Invest2 team was the key presenter and successfully demonstrated an entirely in-house developed business/mathematical model.
But let’s start from the beginning. For the majority of the participants in the regional capital markets, the application of IFRS9 regulation begins on January 1st 2018. In addition to reporting and accounting, the new standard directly affects financial asset valuation – in effect generating extremely high sensitivity to implementation quality. Regulatory documentation and default frameworks leave a series of open conceptual and methodological issues, resulting in significantly different interpretations.
Given the lack of consensus by the participants of the capital market, and inevitably the lack of customer specifications, along with a tight deadline for the implementation of these functional changes in INvest2 system, our team decided on the solution providing concept, took the initiative and began developing IFRS9 model in-house. After analysing available documentation and conducting a series of meetings with customers, INvest2 IFRS9 model was developed and optimized in respect to conflicting requirements for methodological and conceptual compliance, calculation precision, and ease-of-use.
Our model was presented to the existing and potential clients of INvest2 solution, and finally, confirming success of the entire initiative, we receive an invitation from a renowned audit firm Ernst&Young, mentioned in introduction, to attend a meeting of Slovenian Insurance Association and to present our model for the implementation of IFRS9 standard. After a two-hour presentation and a follow-up discussion, we can conclude that INvest2 IFRS9 model has become a reference point in the upcoming adjustments and implementations of IFRS9 standard.