MIMICS recently traveled on-site to the Eastern Caribbean Central Bank (ECCB) to assist its long-time client with implementing changes made necessary by the newly-adopted IFRS 9 regulations.
Effective January 1, 2018, IFRS 9 replaced IAS 39 as the new standard, employing an “expected loss” methodology as it pertains to entities issuing loans or other instruments of debt. It requires proper classification of clients, counterparties and transactions, as well as for the financial institutions to record data and generate reports based on the new criteria. Read more about the specific changes HERE.
The MIMICS IFRS 9 Option allows both clients and loans to be classified individually as low, medium or high risk. It allows reporting of credit scores for each client or counterparty, as well as ratings for each security from the bureau of your choice. It also allows for re-classification into one of the three buckets mandated by IFRS 9, and, optionally, the module can be configured to perform the provision calculation per your specifications.
Working together on-site allowed ECCB and MIMICS to most efficiently properly identify the bank’s specific needs for IFRS 9 reporting, and to get them fully compliant in a timely manner. We thank them for their hospitality and diligence in this successful endeavor.
If you are interested in setting up an on-site visit for IFRS 9 or other needs, or if you would like to see a demonstration of the MIMICS IFRS 9 Option, please CONTACT US.