IFRS 9 / Expected Credit Loss
ECL models built and challenged to audit-grade standard.
Expected Credit Loss sits at the intersection of accounting judgement, data and modelling. We make it robust, documented and defensible.
Overview
Specialist ECL capability — trusted by the profession.
IFRS 9 and its Egyptian equivalent, EAS 47, require entities to recognise expected — not incurred — credit losses. For many companies, this is the most judgemental number in the financial statements.
We design ECL methodologies, build models and independently validate existing ones for corporates, non-bank financial institutions and groups. International accounting networks in Egypt and Saudi Arabia also engage us as ECL specialists on their client engagements.
Every engagement ends with a clear, documented conclusion — so management, auditors and regulators can see exactly how the number was built and why it is reasonable.
What we offer
From methodology to validation opinion.
We support you at any point — building a first model, refreshing assumptions or validating an existing approach.
Methodology design
Segmentation, staging criteria, SICR and default definitions aligned with IFRS 9 / EAS 47.
Model development
Provision matrices, PD/LGD/EAD models and discounting built in transparent, auditable workbooks.
Forward-looking information
Macroeconomic variables, scenario design and weighting with documented rationale.
Independent validation
Challenge of data, assumptions, calculations and outputs, with recalculated results.
Back-testing & monitoring
Comparison of predicted and actual losses, with improvement plans.
Documentation & training
Methodology papers, disclosures and training for finance teams.
How we deliver
A structured validation framework.
Four lenses applied to every model we build or review.
Data integrity
Ageing, exposures, exclusions and reconciliation to the ledger.
Risk parameters
PD, LGD, EAD, macro overlays and scenario weights.
IFRS 9 logic
SICR, staging, 12-month vs lifetime ECL, default triggers.
Conclusion
Findings, recalculated ECL and a formal validation opinion.
Who it's for
For every entity carrying credit risk on its balance sheet.
Frequently asked questions
Insights
Related insights
Building a defensible ECL model under IFRS 9
Simplified vs general approach, PD and LGD, forward-looking information and the documentation auditors expect to see.
ECL on trade receivables: the provision matrix step by step
How to build loss rates from historical data, adjust for the future, and avoid the most common errors we see in practice.
Consolidated financial statements: common errors in group reporting
Control assessments, intercompany eliminations, non-controlling interests and foreign operations — where groups slip.
Explore more
Other services
Audit & Assurance
Independent statutory audits, reviews and agreed-upon procedures that give boards, lenders and regulators confidence in your numbers.
Learn moreTax & Transfer Pricing
Corporate tax, VAT and inspection support, double tax treaty relief and transfer pricing documentation that stands up to scrutiny.
Learn moreAccounting & Consolidation
Reliable bookkeeping, monthly reporting and consolidated financial statements — including outsourced finance support.
Learn moreLet's talk
Clear answers start with the right conversation.
Tell us about your reporting, tax or advisory needs. We aim to respond within one business day.