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IFRS 9 [VILT]

Programme Overview

IFRS 9 is the new accounting standard for financial instruments that will have an impact on International banks and financial institutions worldwide. Numerous changes are in place, designed to make annual reports more meaningful to investors as well as simplify how auditors implement the rules and introduce safeguards to ensure that a severe credit crises cannot emerge again.

IAS 39 is to be replaced with a new standard IFRS 9, which removes the restrictions and accounting anomalies contained in IAS 39 improving the reporting standards and transparency. Many of the users of financial statements told the IASB that the requirements in IAS 39 were difficult to understand, apply and interpret.

IFRS 9 sets out the requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial assets. This course specifically focuses on the new rules and reporting standards contained in IFRS 9 which is designed for professionals who have experience operating under IAS 39.

Who Should Attend

  • Risk Managers;
  • Auditors;
  • Budget and Forecast Officers;
  • Accountants and Financial Controllers;
  • Analysts;
  • CFO and Finance Directors;
  • Investment Bankers;
  • Corporate Bankers;
  • Tax Directors;
  • Corporate Finance Function;
  • Fund Managers and Investors;
  • Derivative Sales Executives; and
  • Tax Managers / Directors.

Programme Outline

Date & Time Programme Description

Day 1: 15 February 2022

2:00 pm – 5:00 pm

  1. Objectives of IFRS 9
  • Definition of a financial asset
  • Initial recognition
  • Initial measurement
  • Interaction with IAS 32, IFRS 7 and IFRS 13
  • Challenges on IFRS 9 implementation

2. Classification and measurement of financial assets

  • The ‘Business model’ assessment
    • The level at which the business model assessment is applied
    • Hold to collect contractual cash flows and selling financial assets
    • Applying the business model test in practice
  • Amortized cost
  • Fair value through other comprehensive income (FVTOCI)
  • Contractual cash flows characteristics test
  • Fair value through profit or loss (FVTPL)
  • Reclassification – measurement at the date of reclassification

3. Measurement of financial instruments

  • Initial recognition
    • Transaction costs
    • Settlement date accounting
  • Subsequent measurement for
    • Financial assets
    • Financial liabilities
    • Foreign currency
  • The effective interest method for amortized cost

4. Scope the impairment requirements

  • Recognition of expected credit losses
  • Measurement of expected credit losses:
    • 12-month expected credit losses (stage 1)
    • Lifetime expected credit losses (stages 2 and 3)
  • Basic principles of measuring credit losses:
    • Probability-weighted outcome, not ‘worst case’ or any other biased scenario
    • Time value of money
    • Measurements need to be based on information that:
      • is reasonable and supportable;
      • is available without undue cost or effort; and
      • includes historical, current and forecast information.
    • Rebuttable presumption: ‘More than 30 days past due’
  • Disclosure
  • Case study on expected credit loss measurement

Day 2: 16 February 2022

2:00 pm – 5:00 pm

  1. Fair value measurement of financial instruments
  • Definition of fair value
  • Identifying the asset or liability
  • The price at which a transaction is assumed to occur

      2. Fair value measurement at initial recognition

  • Potential for difference between the transaction price and fair value at initial recognition
  • Indicators that the transaction price differs from fair value at initial recognition
  • Day 1 profit or loss

      3. De-recognition of financial assets

  • The IFRS 9 de-recognition decision tree
  • Transfers that qualify for de-recognition
  • Transfers that do not qualify for de-recognition
  • Continuing involvement in the transferred assets
  • Sale and repurchase agreements and stock lending
  • Securitization
  • Loan transfers
  • Write-off
  • Practical de-recognition through examples and case studies

      4. De-recognition of a financial liability

  • Exchange or modification of a financial liability
  • Exchange of a financial liability for equity

     5. Transition to IFRS 9

  • General requirements
  • Initial application of IFRS 9 in practice
    • Interim comparative information
    • Classification and designation at the date of initial application
    • Measurement exceptions
    • Transition for the expected loss impairment model
    • Hedge accounting
  • Disclosures on first time application

Your Investment

Package Stakeholder Non Stakeholder
Normal Price $500(4% SBS) $700
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