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Sonnets LLPTax · Accounting · Advisory

🇦🇪 United Arab Emirates

ECL Calculation & IFRS 9 Valuation

Defensible expected credit loss models your auditor will sign off.

Request a fixed-fee proposal Try the free ifrs 9 ecl calculator

Particulars of engagement

Jurisdiction
UAE
Cadence
Each reporting date
Basis
IFRS 9 Financial Instruments
Fee
Fixed, agreed upfront
Review
Managing partner

IFRS 9 requires entities to recognise expected — not incurred — credit losses on receivables, contract assets and loans. Auditors increasingly challenge simple percentage provisions that are not backed by data.

We build expected credit loss models from your historical collection data, calibrate forward-looking macroeconomic overlays, and prepare the journal entries and disclosure notes for your financial statements.

Scope of work

  1. 01Historical loss rate and roll-rate analysis
  2. 02Provision matrix design under the simplified approach
  3. 03General (three-stage) approach for loans and intercompany balances
  4. 04Forward-looking macroeconomic overlays
  5. 05Significant increase in credit risk (SICR) criteria
  6. 06Journal entries and movement reconciliations
  7. 07IFRS 7 credit risk disclosures
  8. 08Auditor query support

Try the free ECL calculator for an indicative provision, then let us calibrate it to your own collection history.

How the engagement runs

  1. 01Free consultation. A 30-minute call with a managing partner to understand your business and obligations.
  2. 02Fixed-fee proposal. A clear scope and fixed fee — no hourly billing surprises.
  3. 03Onboarding. We collect documents, set up access and map every upcoming deadline.
  4. 04Delivery & review. Work is delivered on schedule, with partner review before anything is filed.

Questions clients ask

What is the simplified approach?

For trade receivables and contract assets without a significant financing component, IFRS 9 lets you recognise lifetime expected losses using a provision matrix based on ageing buckets — no staging needed.

How often should the ECL model be updated?

At every reporting date. Loss rates should be refreshed at least annually and the forward-looking overlay reviewed whenever economic conditions change.

Hand over ECL / IFRS 9.

Talk to one of our partners today and find out how much time and money you could save on tax, bookkeeping and compliance.

Request a proposal

or call 0330-685-1625 · business@sonnetsllp.com