London April 19, 2005 – Almonde innovates again with an impairment modelling solution that is fully IAS 39 compliant and can be implemented quickly. The module - developed in conjunction with Deloitte - leverages Almonde's expertise in credit risk (Basel II) and cash flow modelling (ALM) to implement IAS impairment modelling in a practical manner.
“Almonde is making it easy for banks to comply with IAS 39 impairment modelling requirements. We have developed an IAS39 compliant model that covers both the portfolio and individual exposure approaches and leverages synergies with Basel II information when available. The obvious benefits of such synergies were facilitated by the integrated structure of the Almonde risk management platform.“ said Shawn McMorran, Almonde CEO.
The Almonde Impairment Modelling module aims to handle the impairment impact involved in producing 3 major accounting measures:
- Provisions: Determine the provision based on the potential loss estimation due to impairment.
- Balance sheet: Properly recognizing the “carrying value” of a contract on the balance sheet (amortized cost or fair value net of impairment).
- P&L: Properly recognizing in P&L the income on impaired contracts.
The Almonde Impairment Modelling module can be implemented in phases. Phase I starts with data usually already available in banks’ systems. Phase II increases modelling sophistication with richer and more granular risk characteristics data. This progressive approach allows banks to be quickly operational and compliant while controlling their project risk and learning curve.
More information is available at www.almonde.com/ias
Since 1995, Almonde’s industry experts have been building risk management software to help banks improve their overall performance in a compliant and cost-effective manner. With professionals in London, Paris and India, Almonde offers an award-winning risk management platform composed of four major modules: Basel II, Asset Liability Management (ALM), IAS 39 and Funds Transfer Pricing (FTP), leveraging a common scenario analysis engine and data model. These solutions are available either on a stand-alone basis or on an integrated global solution basis.
