Software considers assumed changes in sales, procurement, interest rates, foreign currency and collection of receivables. For each of assumed changes, a new set of financial statements is automatically created. The software also combines changes into different scenarios and offers all possible scenarios as projected financial statements.
In the light of volatile changes in commercial and financial markets and business environment, investors can plan free cash flow available for investment, funds necessary for debt servicing and for ongoing operations. Furthermore, „Financial Risk Analyzer“ provides the assistance in terms of quantified analysis necessary to formulate the most important business policies: pricing policies, considering loans and negotiating terms with buyers and suppliers.
The software enables disclosures required by International Financial Reporting Standard 7: Financial instruments – Disclosures.
According to the IFRS 7, an entity shall disclose information that enables users of its financial statements to evaluate the nature and extent of risks arising from financial instruments to which the entity is exposed at the reporting date.
The disclosures required by IFRS 7 focus on the risks that arise from financial instruments and how they have been managed. These risks typically include, but are not limited to, credit risk, liquidity risk and market risk.
An entity shall disclose sensitivity analysis for each type of market risk (interest rate risk, exchange rate risk, price risk) to which the entity is exposed at the reporting date, showing how profit or loss and equity would have been affected by changes in the relevant risk variable that were reasonably possible at that date.
Date added 28 May 2012
Last Updated 12 Oct 2012