Classification in IFRS9 IFRS 9 considers the business model and cash flow characteristics of a financial instrument.
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- Manual assignment of the accounting category in the front office and import
- Automatic assignment of the accounting category within the solution taking business model and cash flow characteristics into account. For this option two alternatives are supported depending on the available data provided by the source:
- If the source can deliver the SPPI flag and the business model for financial assets, specific components help to derive the appropriate accounting category.
- If the information cannot be delivered, Jabatix Finance FlexFinance components derive the SPPI flag and the business model by analysing the contractual deal information that was imported. In the front office, information that describes the business model and that can be used to determine if the objective of the financial asset is to collect contractual cash flows or sell financial assets, is captured. To this end, it is assumed, for the solution provided, that the business model itself is captured in the front office and delivered to the solution, or alternatively, criteria are defined that enable the identification of the business model in a separate step during the ETL process.
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