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Financial Reporting Advisory and Assurance

Ensuring improved performance through financial risk performance measurement

Corporations across different industries, in particular financial services, are exposed to financial risks arising from various aspects of their businesses. The effective management and reporting of these risks is essential to their economic success and resilience. We help clients improve financial performance through more effective quantification, risk management, and reporting of these risks.

Keeping you ahead of the financial reporting curve

We assist clients in financial and non-financial sectors to confidently navigate the complexity of existing and changing accounting standards, where financial risk and the financial services operating models are a feature of financial performance. We give clients a clear understanding of the strategic, operational and financial impacts which these standards can have on their businesses.

Our guidance starts with the adequate interpretation of IFRS principles and requirements. We develop solutions and frameworks for a successful implementation of new IFRS standards. This entails the development and validation of quantitative models and tools for the accurate measurement of financial risks and instruments to which an entity has exposure. Our areas of expertise include IFRS 9: Financial Instruments (in particular impairments), IFRS 2: Share-based Payments, IFRS 13: Fair Value Measurement and IFRS 17: Insurance Contracts.

Our team of both accounting and financial modelling experts is experienced in leading market practices across the globe with regard to sound financial risk reporting, measurement and management. This includes advising clients on sound economic hedging and hedge accounting, thereby providing more stability to the financial performance of your business.

Financial Reporting Advisory and Assurance Offerings

Credit risk is at the heart of risk management for all lending institutions. FS Advisory has extensive experience in credit risk modelling. We provide our expertise to banks and other lending institutions towards the development, validation and implementation of expected credit loss (ECL) models including the assessment of significant increase in credit risk (SICR) and the incorporation of forward-looking information (FLI) using macroeconomic forecasting models.

We also provide vendor and buy-side due diligence services where the transfer of significant loans or debtors portfolios is at stake. Our clients gain greater assurance on the credit quality, IFRS 9 reporting and the appropriate levels of capital and impairments of target portfolios.

We provide services relating to the valuations of share-based payments including, but not limited to, Long-term Incentive Plans (LTIP), Conditional Share Plans (CSP), Share-option Schemes (SOS) and Share Appreciation Rights (SAR) by carefully following the guidance outlined in IFRS 2, along with market-accepted pricing principles and valuation methodologies. Our services extend to calculating the relevant IFRS 2 expenses relating to BEE and B-BBEE transactions.

Furthermore, we perform fair valuations of financial instruments and derivatives held for investment or hedging purposes, including valuation adjustments (xVAs) to the fair values as required by IFRS 13.

Business entities are exposed to multiple economic risks such as interest rate, currency, equity and commodity risks. These risks can impact the financial state of a business entity. We consult and advise on how these risks can be neutralised or reduced through the use of financial instruments and derivatives.

Further, we provide end-to-end services assisting entities adopt and apply the hedge accounting requirements of IFRS 9. Our team of specialists supports clients in the eligibility assessment of hedge accounting adoption, meeting the pre-requisites stipulated by the relevant accounting standards and in the practical implementation of hedge accounting in the financial reporting

IFRS 17 is considered the most significant regulatory change in the history of the insurance industry. FS Advisory’s subject matter experts support clients on their journey to implement this new standard, transform their financial reporting process, and ensure that appropriate governance processes and controls are in place.

We help insurers stay ahead of governance standards with our comprehensive financial reporting solutions. We identify your inherent risks and redesign your finance function using cutting-edge technologies thereby providing a transformative advantage. By leveraging our expertise, insurers can rapidly evolve their finance capabilities, adapting strategically to the fast-paced global business landscape.