1. User Guide
  2. Business Rules Administration
  3. IFRS 9 Rules

IFRS 9 Rules

This topic contains information on the IFRS 9 Rules:
  • Modelling Sets: The Modelling Set is a basic building block of IFRS 9 Solution Cloud Services. The Modelling set is primarily defined at the Legal Entity and Organization Unit level. Product and Customer Type are two key dimensions.
  • Rating Mapping Rules: Rating is a key dimension that is required for IFRS 9 Solution Cloud Service to compute various key measures like Stage determination and stage Curing. It is also used further in PD, LGD, CCF assignments and ECL calculations.
  • Stage Determination Rules: The IFRS 9 guidelines require each account to be classified into three different stages on every reporting date, based on the significance of an increase in Credit Risk from the initial recognition. The Out of Box service supports three IFRS 9 Stages i.e., Stage 1, Stage 2, and Stage 3.
  • Stage Curing Rules: The Stage Curing Rule feature is introduced in this service to restrict any direct movement of accounts between the higher-risk stage to the lower-risk stage. This movement is allowed only if a particular set of conditions are satisfied.
  • Account Classification Rules: Financial instruments are required to be classified into three categories and thereby accounted for as suggested in the Phase 1 section of the IFRS 9 guidelines.
  • Amortization Rules: This module discusses the procedure to create rules for Amortization.