27. 10. 2017.

INvest2 team was a solution provider for IFRS9 at Ernst&Young workshop

Slovenian Insurance Association, representing insurers who appear on the capital market, held an Ernst&Young workshop in October in Ljubljana, concerning the expected IFRS9 regulation, i.e. the 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 market, the application of IFRS9 regulation begins on January 1st 2018. In addition to reporting and accounting, the new standard directly affects financial assets valuation itself and, consequently, the sensitivity to implementation quality is extremely high. Regulatory documentation and default frameworks leave a series of open conceptual and methodological issues, resulting in a range of significantly different interpretations.

Given the lack of consensus by the participants of the capital market and, inevitably, the lack of customer specification, with a tight deadline for the implementation of these functional changes to the INvest2 system, our team has decided on the solution providing concept, took the initiative and developed proposal for the IFRS9 model on its own. After analyzing available documentation and having a series of meetings with customers, a model was developed that presents optimum in terms of conflicting requirements for methodological and conceptual compliance, precision of the calculations themselves, and user-friendly access.

The model was presented to the existing and potential clients of INvest2 solutions, and as a confirmation of the success of the entire initiative, we single out a call 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 the INvest2 model has become a reference point in the upcoming adjustments and implementations of IFRS9 standard.