FlexFinance Core Valuation consists of various calculation kernels. Each kernel deals with the calculation of a specific figure/ratio.

On a high-granular level, a distinction can be made between two types of measurements:

• Measure based on cash flows, such as
  • FV based on the Discount Cash Flow Method (please read more in the manual: Fair Value)
  • FV with constant credit spread based the Discount Cash Flow Method (please read more in the manual: Fair Value)  
  • Amortised cost (please read more in the manual: Amortised Cost), including remaining open amortisation and amortisation portion for a specific period
  • Effective Interest Rate (please read more in the manual: EIR)
  • Initial Residual Spread (InRS)
  • Risk Provisions based on Recovery Cash flows 
    • Recoverable Amount (please read more in the manual: Specific Provision)
    • Exposure at Default 
    • Unwinding (please read more in the manual: Unwinding)
  • Interest accrual

• Statistical measures for which statistical methods are used for calculation, for example
  
  • Probability of Default based on historical performance data for customers 
  • Loss given default based on historical performance data for customers
  • Option price models