IFRS 9 / CECL Impairment Calculator

The IFRS 9 / CECL Impairment Calculator estimates expected credit losses on your loan and securities portfolios from historical cohort performance, current conditions and reasonable forecasts. It supports CECL methods under ASC 326 and IFRS 9 staging, and keeps the data, model results, qualitative adjustments and approvals for each period together. Your finance team proposes the allowance and your committee approves it, with a record auditors and examiners can follow.

The problem it solves

Many institutions calculate the allowance in spreadsheets linked to loan extracts, with loss rates, forecast assumptions and qualitative adjustments maintained by one or two people. Each quarter-end the data is rebuilt by hand, small changes ripple through formulas nobody fully reviews, and the reasoning behind an adjustment lives in a memo written after the number was chosen. When auditors or examiners ask how a figure was reached, the team reconstructs it rather than showing it.

Who it’s for

• Controllers and accounting teams who own the allowance for credit losses
• Credit risk analysts who build loss estimates and forecasts
• Allowance and audit committees who approve the period's estimate
• Model risk teams who validate the methods and assumptions
• Internal and external auditors and examiners, who need to follow each figure to its source

1. Prepare dataLoan, security and charge-off data from your core and servicing systems is loaded for the period, checked for completeness and reconciled to the general ledger before any estimate is run.
2. EstimateEach pool is estimated with the method you have chosen for it: vintage or cohort loss rates, probability of default and loss given default, discounted cash flow, or remaining-life approaches, combined with your economic forecasts.
3. Adjust and reviewQualitative adjustments are entered against the factors your policy lists, each with its rationale and supporting evidence, and reviewed by someone other than the person who proposed it.
4. Approve and reportThe proposed allowance goes to your controller and committee with the movement analysis and supporting reports. Once approved, the period is locked and the journal entry and disclosure data are exported.

Cohort and vintage analysis

Historical losses tracked by origination cohort and pool, so loss curves come from your own experience rather than a spreadsheet rebuilt each quarter.

Multiple estimation methods

Vintage loss rates, PD/LGD, discounted cash flow, remaining-life and WARM approaches, chosen per pool and documented with the reason for the choice.

IFRS 9 staging

Stage 1, 2 and 3 assignment from your significant-increase-in-credit-risk criteria, with 12-month and lifetime losses calculated and stage movements explained.

Forecast scenarios and reversion

Load your economic scenarios, weight them, set the forecast period and reversion approach, and see the effect of each on the estimate.

Qualitative adjustments with evidence

Each adjustment is tied to a policy factor and a pool, with its rationale, attachments, preparer and reviewer recorded.

General ledger reconciliation

Loan balances reconciled to GL control accounts before estimation, with differences listed and signed off.

Sensitivity analysis

Run the estimate under alternative forecasts, weightings and assumptions and keep the results with the period.

Movement analysis

The change in the allowance from the prior period broken down into volume, mix, credit quality, forecast and qualitative effects.

Individually assessed loans

Collateral-dependent and other individually assessed loans estimated separately, with appraisals and support attached.

Period lock and reproduction

Each approved period is locked with its data, settings and results, and can be rerun as of that date to produce the same figures.

Assumption library

Pools, methods, forecast periods, reversion settings and qualitative factors versioned, with who changed them and when.

Committee and disclosure packs

Committee reporting, disclosure tables and regulatory report data produced from the same approved figures.

Credit risk analyst

Builds pools, loss estimates and forecast scenarios, and runs sensitivity analysis

Allowance accountant

Loads and reconciles period data, prepares qualitative adjustments and the committee pack

Controller

Reviews the proposed allowance, approves adjustments and signs off the period

Allowance committee member

Reviews the committee pack and records the committee's approval or questions

Model validator

Reviews methods, assumptions and results and records validation findings

Auditor or examiner (read-only)

Views locked periods, calculations, adjustments and the audit trail, with no ability to change them

Core banking and loan servicing

Loan, commitment, risk rating, collateral and payment data by scheduled file transfer or API, mapped during implementation.

General ledger

Control account balances for reconciliation, and the approved allowance entry back to your ledger.

Economic forecasts

Scenarios from the forecast provider you already use, or your own internal scenarios, uploaded in a standard template.

Investment accounting

Held-to-maturity and available-for-sale securities positions, ratings and impairment inputs.

Single sign-on

Staff sign in through your identity provider (SAML or OpenID Connect).

Model risk management

Method documentation, assumption history and back-testing shared with Moraph's Model Risk Management (MRM) Validator or your own model inventory.

Regulatory reporting

Allowance figures by loan category for your Call Report or 5300 Call Report, including through Moraph's Automated Call Report Filer.

Work API

Period results, adjustments and status available to your data warehouse and reporting tools through the Moraph Work API.

Single sign-on

Staff sign in through your identity provider, so your password and multi-factor policies apply.

Role-based access

What each person can see and do follows their role and entity; preparing an adjustment is separate from approving it.

Locked periods

Approved periods cannot be changed without a recorded reopening, so reported figures stay tied to the data and settings that produced them.

Encryption and keys

Client data is encrypted, with keys Moraph staff cannot use without explicit, time-bound authorization.

Complete audit trail

Every data load, setting change, adjustment, approval and export is logged with the person and time, and cannot be edited.

Data residency

Data stays in the hosting region you choose: the United States, the United Kingdom or Australia.

Moraph cloud

Hosted and operated by Moraph in the United States region. United Kingdom and Australia regions are available for institutions reporting under IFRS 9 outside the US.

Dedicated environment

A single-tenant environment for institutions whose policies require isolation, scoped in the proposal.

With a managed service

Optionally run alongside a Moraph managed service for period-close support and platform administration.

Data mapping

We map your loan, collateral, charge-off and GL data to the Calculator's model and agree the file or API schedule. We need historical data extracts and a contact from your core-system team.

History and pools

Your historical loss experience is loaded and pools are defined with your credit and accounting teams, based on shared risk characteristics.

Methods and assumptions

Methods, forecast scenarios, reversion settings, staging criteria and qualitative factors are configured to match your allowance policy, and documented for your model risk process.

Parallel periods

The Calculator is run alongside your current process for the periods you choose, and differences are explained before you rely on it.

Workflow and roles

Close steps, review and approval rules, committee reporting and roles are configured to match your governance.

Training and go-live

Analysts, accountants, approvers and committee members are trained on their own steps, and the first live period is closed with Moraph staff available.

• The Calculator produces an estimate; the allowance recorded in your financial statements is your institution's judgment, approved by your own controller and committee.
• Estimates depend on the quality and length of the loss history and portfolio data you provide. Where your own history is limited, peer or proxy data must be sourced and justified by you.
• It does not produce economic forecasts. You supply scenarios from your chosen provider or your own economists.
• It does not post to your general ledger directly; it exports a journal entry file for your team to post.
• It does not perform fair value measurement or hedge accounting.
• Methods and assumptions are configured to your policy during implementation; choosing them, and changing them, remains your decision.
• Using the Calculator does not replace independent model validation or your auditor's testing.
• It does not file regulatory reports; it produces the data your reporting team uses.

• Load an anonymized extract of one portfolio and its loss history, and compare the estimate with your last approved figure
• Ask an accountant to reconcile a period's data to the general ledger and record the differences
• Enter a qualitative adjustment and follow it through review and approval
• Run a sensitivity analysis on an adverse scenario and review how the result is presented to committee
• Rerun a locked period and confirm it reproduces the same figures
• Confirm role separation: who can propose, review and approve adjustments and the allowance