top of page

Expected Credit Loss Modeling 

(ECL) / (IFRS 9 & IPSAS 41)

With the introduction of forward-looking credit loss models under IFRS 9 and IPSAS 41, financial institutions and corporates face increasing complexity in estimating and reporting expected credit losses (ECL). ECT Business Consulting provides expert support to ensure robust, compliant ECL frameworks.

Image by Jeffrey Blum

Key Deliverables:

  • Custom ECL model(s) and supporting documentation

  • Scenario and sensitivity analyses

  • Comprehensive model validation reports

  • Detailed ECL disclosures for financial reporting

Client Benefits:

  • Full compliance with IFRS 9, IPSAS 41 requirements 

  • Enhanced credit risk management and insight

  • Defensible, transparent methodologies for auditors and regulators

  • Improved decision-making through scenario-based analysis

Financial Statements Line Items (FSLI) Impacted:

  • Loss Allowance for Expected Credit Losses (Statement of Financial Position – Assets: Loans, Receivables, Trade Receivables)

  • Impairment Loss on Financial Assets (Profit & Loss Statement)

  •  Disclosures: Credit Risk & ECL Movement (Notes to the Financial Statements)

 

Why ECT?

We combine technical excellence, local regulatory expertise, and a practical understanding of client portfolios to deliver clear, actionable ECL solutions.

Image by Vadym Shashkov

Scope of Services:

  • ECL framework design, including methodology documentation and policy development

  • Model development and calibration for Stage 1, 2, and 3 financial assets

  • Data preparation, segmentation, and analysis for ECL calculation

  • Integration of forward-looking information, macroeconomic scenarios, and overlays

  • Model validation, back-testing, and regulatory compliance reviews

  • Preparation of ECL disclosures for financial statements and regulatory reports

bottom of page