Training – providing specialized training’s in risk, compliance, accounting, fraud

and audit

Training – we provide specialized courses in accounting, audit, risk management, compliance and fraud. PML Advisory is a professional advisory firm in Nigeria that provides clients with specialized services in International Financial Reporting Standards, Risk Management Compliance, Internal audit and other Accounting services.

Our experienced and dedicated faculty provides theoretical and practical insight on accounting, consolidation, internal and external audit to clients in oil and gas, manufacturing, financial services, telecommunication, government agencies and parastatals etc.

We have experience working with clients in the private and public sectors and helping them to transform business operations through well-tailored courses.

PML Advisory has trained over 150 clients from different sectors of the economy within and outside Nigeria. We provide practical and hands on courses.

Training consist of concise briefings on best practice, backed up by interactive learning activities like workshops, role-plays, case study analysis, coaching, brainstorms and structured group discussions. You will not sit passively through long lectures.

On completion of each courses at PML Advisory, we issue certificates to our trainee, evidencing their enrollment and attendance for our courses.

We run both in house and open training based on which your organisation’s need. Our programs are specifically designed to ensure your staff members are effectively utilize all the tools and knowledge necessary for professionals to be successful in today’s market.

Please Contact us Abiola on +234 803 535 3068 or afajimi@pml.com.ng.

Trainings

"Not every customer who owes you today will pay you tomorrow."

This simple reality is the foundation of Expected Credit Loss (ECL) under IFRS 9 – Financial Instruments.

Unlike the old IAS 39 model, which recognised losses only after a default occurred, IFRS 9 introduced a forward-looking approach. Rather than waiting for customers to default, entities are required to estimate potential credit losses using historical data, current conditions, and reasonable forecasts of future economic events.

The Three-Stage ECL Model

IFRS 9 classifies financial assets into three stages based on changes in credit risk:

This ensures that impairment provisions reflect changes in credit quality throughout the life of a financial asset.

Why Economic Conditions Matter

Expected Credit Losses are influenced by more than historical payment patterns. IFRS 9 requires entities to consider forward-looking information, including inflation, interest rates, exchange rate movements, unemployment, and overall economic conditions.

As these factors worsen, the likelihood of customer default increases, often resulting in higher impairment provisions—even before any actual default occurs.

Illustrative Example

ABC Limited has trade receivables of ₦100 million and initially estimates an Expected Credit Loss of 2%, resulting in an impairment allowance of ₦2 million.

As inflation rises and customers experience cash flow challenges, management revises its expected loss rate to 6%. Consequently, the impairment allowance increases to ₦6 million, despite no customer having defaulted.

This demonstrates the essence of IFRS 9: recognising expected losses rather than waiting for actual losses to occur.

Why It Matters

Expected Credit Loss is more than an accounting requirement—it is a proactive risk management tool. By recognising potential losses early, organisations improve the reliability of their financial statements, strengthen credit risk management, and provide investors with a more realistic view of financial performance.

Final Thought

Economic uncertainty is inevitable, but delayed recognition of credit risk should not be.

The Expected Credit Loss model under IFRS 9 encourages entities to move from a reactive to a forward-looking approach, ensuring that financial statements reflect both today's realities and tomorrow's risks.

In an uncertain economy, the strongest financial statements are those that anticipate risk—not merely report it.

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