Which method do you use to adequately calculate your provisions ?
The provisions for bad debt which you have sitting on your books, are often calculated using traditional techniques. They will typically be built from an aging of your invoices, combined with customer-specific items and events such as insolvency or passed to external collections,...

Whilst it may have served you right in the past, it is often a topic of debate, as the provisions hold cash and profit essential for the business. The conservative nature of the credit management has often led to a degree of over-provisioning. At the same, you also do not want to under-provision. What you really require is a truthful and sharper assessment of expected future credit losses, such that you can set the required, realistic provisions.

Under IFRS9, it is exactly these expected future losses which are in scope, on top of the incurred losses. As the scores of QuantQollect predict the future likelihood of a severe delay in payment, they form a solid basis from which to drive your IFRS9 provision calculations.

Fast, reliable and transparent, the QuantQollect scores will make your provisions more accurate and future-proof. An excellent starting point for optimising your IFRS9 modelling. Why wait any longer? Simply visit our web site, order QuantQollect, and start today!