Essentials - A Focus on IFRS 9 Financial Instruments (Virtual Classroom)

Introduction

This online IFRS training is being delivered live in a single 4 hour session which runs from 13:00 – 17:00 London (UK).

This focus session will take a brief, topic-specific look at IFRS 9.

IFRS 9 has a logical, principles-based approach to the measurement of financial assets based on the business model and nature of cash flows. The forward-looking impairment model requires timely recognition, and ongoing assessment of credit losses. The hedge accounting requirements are principles based and aligned to common risk management practices.

This course provides an overview of the key requirements of IFRS 9 in a practical and interactive way. In addition, it covers the impact of COVID-19 on IFRS 9 application and the IASB guidance in relation to the interest rate benchmark reforms.     

The course is designed to help preparers and users of financial statements to evaluate the impact of IFRS 9 on the financial statements.

Learning Objectives

This course is beneficial to preparers and users of IFRS financial statements. The participants will analyse the principles in IFRS 9.

• Apply the principles for classification and measurement of financial assets and financial liabilities, including derivatives and embedded derivatives in IFRS 9
• Apply the expected credit loss impairment model for financial assets
• Obtain an overview of hedge accounting and analyse the requirements in IFRS 9
• Review the impact of COVID-19 on applying IFRS 9
• Update participants on the interest rate benchmark reforms

Who Should Attend

• Financial and management accountants in corporate and financial institutions
• Staff in treasury, operations, risk management, IT or compliance departments
• Internal and external auditors of entities reporting under IFRS
• 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 related to financial instruments
• Professors and other instructors with educational facilities
• First-time adopters of IFRS, seeking to analyse the implications of adopting IFRS 9 initially for accounting for their financial instruments

Topics

• Introduction
  • Overview of IFRS 9
• Classification and measurement of financial assets and financial liabilities
  • IFRS 9 Classification: amortised cost, fair value through other comprehensive income and fair value through profit or loss
    • Business Model criteria
    • Solely Payments of Principal and Interest (SPPI)
  • Fair value option
  • Fair value movements due to own credit risk in financial liabilities at fair value through profit or loss
  • Accounting for derivatives and embedded derivatives
• Impairment of financial assets
  • Introduction to IFRS 9 expected credit loss model – background, scope and impact
  • Application of IFRS 9 expected credit loss model
    • 12-month and lifetime expected credit losses
    • Staging of financial assets
    • Determing of significant increases in credit risk
    • Measuring expected credit losses
    • Modified financial assets
    • Simplification and practical expedients
    • Purchase/origination of credit-impaired financial assets
    • Loan commitments and financial guarantee contracts
• Hedge accounting
  • Overview of hedging and accounting for three types of hedges – fair value, cash flow and net investment hedge
  • IFRS 9 hedge accounting model
    • Hedged items
    • Hedging instruments
    • Qualifying criteria
    • Hedge documentation
    • Hedge effectiveness requirements
    • Rebalancing
    • Discontinuation
• Updates
  • Impact of COVID-19 on IFRS 9
  • Interest rate benchmark reform

Teaching Method

• Live group internet instruction in a virtual 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 presentation slides for future reference
• Electronic copies of exercise and case study solutions will be available to participants
• This virtual training is being delivered live and online in a session which runs from 13:00 – 17:00 London (UK).

Instructors

Venue

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

Prerequisites

Basic understanding of accounting under IFRS or any national standards. No advance preparation is required for this course.