Impairment & Provisioning Support

When the impairment question arrives, the evidence should already exist.

Impairment decisions require evidence. Evidence requires continuous maintenance. The documentation your credit committee, auditors, and LPs need when they ask about a borrower's staging or provisioning position needs to have been built over time — not assembled in the week before the meeting under the pressure of a decision that has already been made.

We maintain the impairment evidence layer continuously, so the IFRS 9 staging decisions your team makes are supported by a documented trail that existed before the conversation started, not constructed after it began.

Start with a diagnostic View Deck

What this service covers

IFRS 9 staging evidence per borrower, maintained continuously

Significant Increase in Credit Risk (SICR) signal tracking

Stage 1 / 2 / 3 migration documentation and rationale

ECL support and loss estimate documentation

Audit-ready impairment trail per borrower

Source evidence documentation and review history

Forbearance and modified loan tracking

Impairment pack preparation for CC and auditors

IFRS 9

Staging evidence built continuously — not reconstructed at audit under pressure

3-stage

Migration tracking from origination through default, with documented rationale at each point

Continuous

Evidence build — the impairment trail exists before the question is asked

Audit-ready

Documentation structured for credit committee, auditors, and LP review

The impairment challenge

Impairment is not a point-in-time decision.
It is the end of a process that should have started at disbursement.

01 — The evidence gap

Evidence assembled under pressure is incomplete by design

When the impairment question surfaces at credit committee or audit, teams assemble the evidence they need to support the staging decision. Assembled retrospectively, the evidence is always incomplete — it reflects the history that was documented, not the history that existed. Auditors see the gap. LPs see the gap. A continuous evidence build closes it before the question is asked.

02 — IFRS 9 compliance

Stage migration decisions require a documented trail of SICR signals over time

A borrower's movement from Stage 1 to Stage 2 requires documented evidence that a Significant Increase in Credit Risk occurred — tracked at the time, not reconstructed at audit. The IFRS 9 standard does not accept staging decisions that cannot be evidenced by the monitoring record. Building that record continuously is the only approach that is defensible under challenge.

03 — Auditor scrutiny

Auditors test the process, not just the conclusion

The quality of an impairment position under audit is determined by the quality of the evidence and the integrity of the process that produced it. Auditors look for continuity — that the monitoring record is consistent, that staging decisions are supported by evidence that was maintained over time, and that the ECL calculation reflects a genuine assessment rather than a point-in-time rationalisation.

"The strongest impairment position is one where the evidence was already there before the auditor asked for it. That requires a monitoring process, not a documentation exercise."

IFRS 9 staging

Evidence maintained across all three stages — from origination to default.

Each stage has its own evidence requirements and its own challenges. We maintain the documentation layer for each stage continuously, so the record is current at every point in the credit cycle.

Stage 1

Performing — 12-month ECL

Borrowers at origination credit quality, with no significant increase in credit risk since initial recognition. The evidence requirement is to demonstrate that the borrower remains in Stage 1 — and that SICR signals have been monitored and assessed each period.

Origination credit quality baseline documented

SICR signal monitoring each review cycle

12-month ECL calculation and inputs maintained

Stage 2

Underperforming — Lifetime ECL

Borrowers where a significant increase in credit risk has occurred since origination. The migration from Stage 1 to Stage 2 requires documented evidence of SICR signals tracked over time — and the lifetime ECL calculation requires a forward-looking assessment of loss across the remaining facility term.

SICR triggers and migration rationale documented

Lifetime ECL calculation and scenario inputs

Ongoing monitoring of recovery probability

Stage 3

Credit-impaired — Lifetime ECL

Borrowers where objective evidence of impairment exists — default, forbearance, breach, or significant financial difficulty. The evidence requirement is the highest: a documented history of deterioration, the point of impairment identification, and the basis for the specific provisioning position.

Impairment identification timeline and trigger

Specific provision basis and recovery assessment

Forbearance and workout plan tracking

What we maintain

The full evidence layer — continuously, per borrower.

Every element of the impairment documentation your credit team, auditors, and LPs require — maintained as an ongoing record, not assembled at the point of need.

IFRS 9 staging classification per borrower

SICR signal tracking and documentation

Stage migration evidence and rationale

12-month and lifetime ECL inputs

Probability of default assessment

Loss given default and exposure

Forward-looking macro scenario inputs

Forbearance and modified loan tracking

Objective evidence of impairment log

Workout and recovery plan tracking

Source evidence documentation per borrower

Audit-ready impairment trail

What you receive

An impairment evidence layer. Built continuously.

IFRS 9 staging register

A current staging register for all monitored borrowers — Stage 1, 2, or 3 classification, the rationale supporting each decision, and the SICR evidence that supports the current position.

Current stage per borrower with rationale

SICR evidence and signal history

Migration timeline and trigger documentation

Impairment evidence packs

Borrower-level evidence packs for Stage 2 and Stage 3 borrowers — the deterioration timeline, SICR signals, source evidence, staging rationale, and recommended provision basis.

Deterioration timeline per borrower

Source evidence and supporting data

Staging rationale and provision basis

ECL support documentation

Documentation of the ECL inputs and assumptions for each staged borrower — PD, LGD, EAD, forward-looking macro overlays, and scenario weighting — maintained as an ongoing record.

ECL inputs per borrower and stage

Scenario assumptions and weightings

Movement narrative since last period

Forbearance and workout tracker

A structured record of all forborne and modified loans — the terms of the modification, the rationale, the monitoring conditions attached, and the recovery status updated each cycle.

Forbearance terms and modification log

Monitoring conditions and compliance status

Recovery trajectory and current assessment

Audit-ready evidence trail

A complete, structured evidence trail for each borrower — designed to support auditor review, regulatory scrutiny, and LP due diligence with documentation that was maintained throughout the credit cycle, not assembled at audit.

Chronological monitoring and decision record

Source evidence linked to staging decisions

Consistent format across all borrowers

CC impairment brief

A credit-committee-ready summary of the portfolio's impairment position — staging distribution, significant movements, provision adequacy assessment, and key borrowers requiring CC attention.

Portfolio staging summary and distribution

Key movements and escalation flags

Provision adequacy and ECL commentary

How we start

We begin with your current portfolio and staging position.

We review your current IFRS 9 staging approach.

We assess your existing staging methodology, the documentation currently in place, and where the evidence gaps are most acute — particularly for Stage 2 and Stage 3 borrowers approaching audit review.

We work from your existing files and monitoring records.

Credit papers, financial reporting, covenant data, watchlist records, and any existing impairment documentation. We build the evidence layer from the information that exists rather than requiring new processes before we begin.

We deliver the first staging and evidence view.

A full IFRS 9 staging register and impairment evidence packs for the selected borrower cohort — with staging rationale, SICR evidence, ECL support documentation, and audit-ready trails per borrower.

You assess the quality before expanding.

Review the evidence packs with your credit team and auditors if appropriate. If the output strengthens your impairment position, we expand and maintain the service across the full book on an ongoing cycle.

Start with a diagnostic View Deck

Built on the monitoring foundation

Impairment evidence is most defensible when it is built from a continuous monitoring process. The SICR signals that support a Stage 2 migration need to have been tracked at the time they occurred — not identified retrospectively. We design the impairment service as an integral part of the broader credit oversight layer, not as a separate documentation exercise.

Your provisioning decisions stay with you

We maintain the evidence and documentation layer that supports your staging and provisioning decisions. The credit judgement — what stage a borrower should be in and what provision is appropriate — remains with your team. Our role is to ensure that judgement is supported by the evidence it needs to be defensible.

Standalone or integrated

Impairment and provisioning support can be taken as part of the full managed credit service, or as a standalone engagement if the primary need is strengthening the IFRS 9 evidence position ahead of an audit cycle or LP review.