The single most complex aspect of IFRS 9 is credit loss impairment. This is because IFRS 9 represents a very significant departure from the principles of its predecessor IAS 39. In terms of IFRS 9, entities are now required to estimate future losses. This requires very
significant modelling and data capabilities in order to forecast the future.
Over 120 countries now require or permit the use of IFRSs. Over 7,000 public companies in the European Union have complied with IFRS since 2005. Most other countries are either adopting IFRSs or have decided to converge their national standards with IFRSs. Every one of these companies will be forced to confront the complexities of applying the impairment rules of IFRS 9. Implementation of IFRS9 impairment without a detailed understanding of its likely impact my result in adverse unforeseen consequences.
This program answers questions such as:
- How are the new rules different from IAS 39?
- What did IAS 39 require?
- What does IFRS 9 require?
- Why are the provisions so difficult to apply in practice?
- What are the key functions in Excel required to model IFRS 9 impairment?
- How to apply these functions in building an appropriate model?
- How does one model expected losses?
- What journal entries are required for IFRS 9 purposes?
- What will happen to interest income recognition under IFRS 9?