System-wide Re-estimation Includes IFRS-9 Accruals

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Since 3.26.0, controllers could already run a system wide re-estimation in order to ensure that all IFRS 15 accruals for unpriced goods were based on market data from the same date. Now, this same procedure will also ensure that all IFRS 9 accruals are based on the market data from the same date. This screen can still be reached by navigating to Settings => Reporting Period Status => a period not closed for trade => a link "Re-estimate". When this link is selected, the Recalculate estimated prices screen opens.

 

Reestimation screen

 

When the re-estimation is run for a specified date, Agiblocks collects all assets. It updates the estimated price and estimated market value with an estimate based on market data of the specified date. As a result, related accruals are also updated (a reverse accrual for the old value, and a new accrual based on the new estimate). Of course, this is now also applied to priced contracts, as they also have an estimated market value.

 

When IFRS 9 accruals are not switched on, this procedure will not produce IFRS 9 accruals, but it still updates the estimations on cost sheets.