Jabatix Core Valuation consists of various calculation kernels. Each kernel deals with the calculation of a specific measure/ratio.
On a high-granular level, a distinction can be made between two types of measurements:
- Measure based on cash flows, such as
- FV based on the Discount Cash Flow Method
- FV with constant credit spread based the Discount Cash Flow Method
- Amortised cost, including remaining open amortisation and amortisation portion for a specific period
- Effective Interest Rate
- Initial Residual Spread (InRS)
- Risk Provisions based on Recovery Cash flows
- Recoverable Amount
- Exposure at Default
- Unwinding
- Interest accrual
- Statistical measures for which statistical methods are used for calculation, for example
- Probability of Default based on historical performance data for customers
- Loss given default based on historical performance data for customers
- Option price models
Beside the different types of measurement also different valuation approaches are supported.
For each valuation approach finally a specific figure is provided. Hence the software porivdes also detailled figures which are considered during the calculation. Doing so the software follows the philosophy of separation of valuation elements.
A list of general valuation elements can be found here.
Please note: a general valuation element covers calculations which are valid for various finance and risk requirements. Whenever a spcific finance or risk requirement requires a specific setting for calculating a general valuation element, a separate valuation element is provided. For example the valuation element "Effective Interest Rate (EIR)" contains the mathematical approach and processing to calculate the EIR in a standard way. GAAP specifc settings when to recalculate the EIR for subsequent measurement, a GAAP-specific figure is provided. For IFRS e.g. the figure "Effective Interest Rate (EIR) IFRS" is provided which considers IFRS-specific settings during applying the figure "Effective Interest Rate (EIR)".