IFRS 9 - Financial Instruments (2 days)
IFRS 9 Financial Instruments is effective from 1 January 2018 and replaces IAS 39 Financial Instruments: Recognition and Measurement. It introduces a logical, more principles-based approach to classification and measurement of financial assets based on the entity’s business model and an instrument’s cash flow characteristics. The new forward-looking impairment model requires earlier recognition, and ongoing assessment of credit losses. IFRS 9’s hedge accounting requirements are more principles-based and more closely aligned with the entity’s risk management practices.
This course provides an in-depth analysis of IFRS 9 Financial Instruments. It provides numerous examples and illustrations to explain the business model and cash flow characteristics test for classification of financial assets, amortised cost and fair value measurement of financial assets and financial liabilities, de-recognition of financial assets (retained servicing, continuing involvement etc.), measurement of expected credit losses and the accounting and impact of different types of hedges on financial statements. In addition, it covers the disclosures in IFRS 7 and the principles of fair value measurement in IFRS 13.
The course is designed to help preparers and users of financial statements to evaluate the impact of IFRS 9 on the business and its financial statements.
- IASB standards applicable to financial instruments: IAS 32, IAS 39, IFRS 7, IFRS 9 and IFRS 13
- Introduction to IFRS 9
- Definition of financial assets, financial liabilities and equity instruments
- IAS 32 Financial Instruments: Presentation – financial liability versus equity instruments, compound financial instruments and offsetting
- Classification of financial assets and financial liabilities
- Re-cap of IAS 39 classification
- Solely Payments of Principal and Interest (SPPI) criteria
- Business model criteria
- Application of IFRS 9 classification model
- Amortised cost
- Fair value through profit or loss
- Fair value through other comprehensive income
- Fair value option
- Measurement of financial assets and financial liabilities
- Initial recognition including treatment of transaction costs
- Subsequent measurement (IFRS 9 and IFRS 13)
- Debt instruments
- Equity instruments
- Fair value movements due to changes in own credit risk and reporting it for financial liabilities designated at fair value through profit or loss
- Impact of reclassification of financial assets
- Overview of accounting for derivatives and embedded derivatives in IFRS 9
- CVA and DVA for credit risk on derivatives
- Amortised cost financial assets
- Recognition and measurement under IFRS 9
- Loan commitments
- Fee income and loan origination costs
- Financial guarantees
- Repossessed assets
- De-recognition principles
- De-recognition of financial assets
- Determining whether a “transfer” has occurred
- Transfer/retention of substantially all risks and rewards
- Determining whether an entity retains “control” and measurement of continuing involvement
- De-recognition of financial liabilities
- De-recognition of financial assets
- Impairment of financial assets
- Introduction to IFRS 9 expected loss model – background, scope and impact of the model
- Application of IFRS 9 expected credit loss model
- 12-month and lifetime expected credit losses
- Determination of significant increases in credit risk
- Measurement of expected credit losses
- Modified financial assets
- Simplification and practical expedients
- Purchase/origination of credit-impaired financial assets
- Individual and collective assessment of impairment
- Key estimates and judgements
- Hedge accounting
- Overview of hedging, accounting for different types of hedges and comprehensive examples to hedge interest rate risk and foreign exchange risk
- Issues with IAS 39 hedge accounting
- IFRS 9 hedge accounting model
- Hedging instruments
- Hedged items
- Qualifying criteria
- Hedge documentation
- Hedge effectiveness requirements
- Discussion paper on macro hedging (dynamic risk management)
- IFRS 9 transition requirements for classification of financial assets and financial liabilities, expected credit loss impairment and hedge accounting
- IFRS 7 Financial Instruments: Disclosures
- IFRS 1 First-time Adoption of IFRSs - relief from full retrospective application
- Group live instruction in a workshop format
- Powerpoint presentations with demonstrated examples
- Case studies and examples for participants to work through in the course
- Participant questions and group discussions on real life case studies
- All participants receive a comprehensive binder containing presentation slides for future reference
- Electronic copies of exercise and case study solutions will be available to participants
Basic understanding of accounting under IFRS or national standards. No advance preparation is required for this course.
This course is beneficial to preparers and users of IFRS financial statements. The participants will learn the principles in IFRS 9, and its application.
- Classify and measure financial assets under the three categories in IFRS 9
- Analyse the impact of IFRS 9 on the classification of financial assets, including embedded derivatives
- Classify and measure financial liabilities under the two categories in IFRS 9
- Evaluate the principles of fair value measurement in IFRS 13
- Apply the principles in relation to de-recognition of financial assets
- Calculate the impairment loss on loans and other financial assets under the expected credit loss model in IFRS 9
- Analyse the estimates and judgements in the expected credit loss impairment model
- Apply the hedge accounting model in IFRS 9 and learn how it is aligned more closely to common risk management practices compared to IAS 39
See what past participants said about this course:
[Saket Modi’s] Knowledge of subject matter, presentation skills and professionalism in delivery is second to none.
Yemi Ogunfeyimi, Head Internal Audit & Investigation, Bank of Industry Limited Nigeria
Adequate content, good material and excellent resource person.
The programme is well structured and the facilitator [Saket Modi] is quite professional and competent, a subject matter expert. The examples were appropriate.
Who should attend?
- Financial and management accountants in corporate and financial institutions
- Staff in treasury, operations, risk management, IT or compliance departments
- Internal auditors of entities reporting under IFRSs
- External auditors with clients facing the complexities and challenges in adopting and implementing IFRS 9
- Staff and management of Central Banks, Deposit Insurance Entities, and other agencies with regulatory responsibility in the financial services sector
- Financial analysts seeking to improve their understanding of the accounting and disclosures related to financial instruments and the changes introduced by IFRS 9
- Professors and other instructors with educational facilities
- First-time adopters of IFRSs, seeking to analyze the implications of applying IFRS 9 initially
CPE / CPD Accreditation
IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
Field of study: Accounting
ICAEW Partner in Learning
IASeminars is proud to have been named as an ICAEW Partner in Learning, working together to offer the ICAEW IFRS Certificate to our clients worldwide. ICAEW (The Institute of Chartered Accountants in England and Wales) is a world leading professional membership organisation that promotes, develops and supports over 145,000 chartered accountants worldwide. CPE certificates obtained from attending IASeminars courses are an ideal way for ICAEW members and others to demonstrate their continuing professional development, provided that the topic is relevant to their learning and development needs.
Texas State Board of Public Accountancy
IASeminars is registered with the Texas State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: 009689. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.
- Our New York City seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered participants by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.
- Our London seminars take place in 4 star professional conference facilities, generally in city-centre hotels like the Marriott, Sheraton or Hilton brands. Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided.
Linda Hayes (Canada) is a Chartered Accountant who teaches many courses on intermediate and advanced financial accounting topics under IFRS. Her previous experience at ATB Financial (an Alberta Financial Institution) included external reporting under IFRS, accounting for derivatives and hedging, foreign exchange and general ledger management. Linda has been teaching at both the undergraduate and MBA level for over 15 years, and has also been involved in training candidates for the Canadian Chartered Accountant designation. Her work experience also includes six years of public accounting at Deloitte and Grant Thornton, as well as other industry experience. Linda has a degree in Business Administration and a Master’s in Business Administration.
Saket Modi is an international financial trainer and consultant based out of London. He specializes in training courses on advanced accounting, financial reporting and financial analysis topics, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and financial instruments. He has facilitated courses for preparers and users of financial statements from over 50 countries in Europe, Africa, Middle East, Asia and the Caribbean. Saket has spent considerable time working, advising and training on complex matters relating to IFRS, including recognition and measurement of financial instruments and technical updates. He has designed learning materials and facilitated courses for organizations in different sectors including financial institutions, oil and gas companies, governments, professional services firms, accountancy bodies and educational institutions. He has written material on IFRS Accounting for Financial Instruments for the Institute of Chartered Accountants in England and Wales (ICAEW) and was invited by the International Auditing and Assurance Standards Board® (IAASB®) to present a paper on IFRS 9 Financial Instruments at their board meeting in New York. Saket has gained valuable experience working with FTSE listed companies and also with major accounting firms. He is a member of the Institute of Chartered Accountants of India, holds IFRS certificate from the ICAEW and IPSAS Diploma from the Chartered Institute of Public Finance and Accountancy (CIPFA). In addition to being a qualified accountant, Saket is also a CFA® charterholder.
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Select a start date for more details
27 May 2019 New York City
- Course level:
- CPE / CPD:
- 16 hours
- Start date:
- 27 May 2019
- Start time:
- Finish date:
- 28 May 2019
- Finish time:
- New York City