IFRS 9 For Financial Instruments
Financial accounting under the International Financial Reporting Standards (IFRS) has a significant impact on all the industry groups. The International Accounting Standards Board (IASB) has substantially overhauled the accounting rules for financial instruments, which has deeply transformed the financial statements of financial and non-financial institutions. Leaders of internationally operating financial institutions factor these prospective changes into their plans today, recognizing the value of planning ahead and the needs to competitively position the organization for the future.
In this forward-looking training course, you will get an in-depth hands-on learning experience to understand the accounting of financial Instruments under IFRS 9 which has become effective from 1 January 2018. The IFRS 9 has replaced the IAS 39 and impact the following key areas:
- Classification and Measurement
- Impairment Methodology
- Hedge Accounting
The deepening integration of the key finance-related functions, from strategy and planning, through to Risk, Finance and Treasury mean that IFRS 9 will have a widespread impact across the business. The primary impact on your overall business model and financial reporting functions will, however, arise from the changes to the Impairment Methodology. Therefore, most organization are up against the time and have to make sure that their resources have the required knowledge and strategic understanding to deal with the implementation of IFRS 9.
The instructor will share his views and experience on the development and direction of IFRS 9, differences between the existing and modified approaches and emerging challenges for the industry. The instructor will also discuss the implementation road map to these accounting standards and the implications these standards have for your business.
Join us for this comprehensive new walk-through of IFRS 9 framework to help your organization remain current in its knowledge and practice of the latest international accounting standards.
The Program will answer questions such as
- How to achieve the amortized cost criteria for financial Instruments (FI) under IFRS 9?
- How to apply the Business Model test and SPPI (Solely Payment of Principal Interest) criteria on the existing portfolio?
- When to use the fair value through OCI category (FVOCI)?
- How to account for unquoted equity Instruments and hybrid instruments?
- How to account for Own Credit Risk and accounting mismatches?
- Can we change the classification and measurement of FIs under IFRS 9?
- Impairment: Incurred loss vs. expected credit loss model?
- How to apply the new expected credit loss model?
- What will be the impact on my impairment allowance?
- How to apply the expected credit loss model to trade receivables, financial guarantees, and revolving credit facilities?
- How can hedge engineering work to achieve better results?
- What are the hedge accounting documentation requirements?
- How is hedge effectiveness designed and tested?
- How can ‘hidden’ derivatives be identified?
- When do hybrid instruments need to be separated?
- What are the principal similarities and differences between US GAAP and IFRS in the area of derivatives and hedge accounting?
Our trainers have specialist knowledge and first-hand experience of implementing the International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), Generally Accepted Accounting Principles (USGAAP), Risk management strategies, Management practices, Compliance matters such as Basel regulations, Solvency II, Anti Money Laundering regulations and number of other evolving regulatory matters. This ensures an engaging and stimulating learning experience for professionals and senior executives, helping to ensure knowledge is retained.
They understand the accounting and regulatory requirements, risk environment, industry issues and challenges, risk management strategies, financial reporting & disclosure requirements, and compliance environment. They impart their knowledge using real-life industry examples, simple and user-friendly presentation of important concepts/approaches and case studies. Here’s your chance to get to know some of our faculty members and thought-leaders in their fields.
IFRS 9 and challenges ahead
- IASB Time Line and latest amendments/discussion
Classification of Financial Instruments
- IAS 39 Categories vs. IFRS 9 categories;
- Measurement Criteria under each category;
- FVOCI Category for equity instruments and Challenges;
- FVOCI for Debt instrument and issues
- Business Model;
- Characteristics of a Financial Asset test;
- Accounting of Hybrid instruments/Embedded Derivatives;
- Transition Challenges and impact
- Examples and Group Case Studies
- Categories for Financial liabilities;
- Hybrid instruments;
- Bifurcation of embedded derivatives;
- Accounting of Own Credit risk;
- Accounting of CVA/DVA
- Issues and Challenges;
- Examples and Case Studies
Impairment of Financial Assets – (Incurred loss model vs expected loss model)
- Financial assets measured at amortised cost
- Existing incurred loss model
- proposed expected cash flows model/three bucket model
- Application of impairment model
- Emerging issues and challenges
- Emerging issues and challenges ahead
- Road map to expected loss model
General Hedge Accounting
- Aligning hedge accounting with risk management
- fair value and Cash flow hedges
- Hedged items and Hedging instruments
- Qualitative and Quantitative effectiveness
- rebalancing the hedge relationship
- Simpler and flexible hedge accounting framework
- Examples and Group Case Studies
Questions & Answers
Why you must attend?
Why you should attend?
In July 2014, the International Accounting Standards Board (IASB) has issued the final version of IFRS 9, which combines classification and measurement, the expected credit loss impairment model and hedge accounting. The standard will eventually replace IAS 39 and all previous versions of IFRS 9. Financial assets are measured either at amortised cost or fair value through other comprehensive income based on both the entity’s business model and the financial assets’ contractual cash flow characteristics. Application is required for annual periods beginning on or after 1 January 2018.
The IASB had kept the implementation date from 2018 primarily due to the fact that the banking industry had asked for 3 years’ time to implement the IFRS 9. The implementation of IFRS 9 takes approximately two years considering the following challenges:
- Size and complexity of the necessary changes to systems and processes;
- Volume/Quality of data required;
- Adoption of new classification and impairment models;
- Impact on the capital;
- Pool of skilled resources required for the implementation;
- Interaction with the regulatory impairment and capital requirements; and
- Market expectations in relation to the accounting, regulatory and taxation impacts in advance of the final standard coming into force”.
Therefore, this course shall provide you a good insight into IFRS 9 and implementation challenges to ensure that you are in a position to take an informed decision. We have designed this course to give you all the required knowledge, skills and experience to deal with these challenges. We have one of the best and experienced faculties in the world with over 15 years of experience in implementing IFRS in the UK and also in other jurisdictions. This is an instructor led course for professionals (beginners to expert level) who want gain a complete and in-depth understanding of the new IFRS 9. This IFRS 9 course has been designed to be highly interactive and practical to provide exhaustive learning of conceptual and practical issues for those who are looking to sharpen their skills and knowledge about accounting of financial instruments.
Who should attend?
- Chief Financial Officers & Finance Directors
- Accountants / Financial Controllers
- Corporate finance function
- Finance, tax managers/executives
- Budget Officers / Forecasting Specialists
- Fund Managers and Investors
- Strategic and Financial Planners
- Private Equity and M&A Specialists
- Investment Bankers/ Merchant bankers
- Corporate Bankers
- Risk managers, Regulators, Academicians and Accountancy students
- Derivative sales executives
All delegates will receive an evaluation questionnaire upon completion of the course. The feedback from these questionnaires allows Shasat to conduct trend analysis and continuously approve the quality of its learning solutions
Venue & other info
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