Accounting for Financial Instruments under IFRS 9

Inter-company training

Who is the training for?

  • Anyone interested in developments in IFRS accounting standards for banks and current projects.
  • Statutory Auditors and their staff.

Duration

8,00 hours(s)

Language(s) of service

EN

Prerequisites

Good knowledge of IFRS

Goals

  • Understanding the challenges of IFRS 9.
  • Learn specific vocabulary.
  • Mastering IFRS 9 accounting principles.
  • It should be noted that most credit institutions continue to apply IAS 39 for hedge accounting. The IFRS 9 rules on hedge accounting will therefore be discussed only briefly.

Contents

Part 1. Introduction

  • Explain the regulatory environment.
  • Accounting issues:
    • Amortised cost.
    • Fair value.
    • Depreciation

Part 2. IFRS 9: Classification and measurement of Financial Instruments The new asset categories defined by IFRS 9:

  • The portfolio at amortised cost:
    • Business model test.
    • Basic or non-basic instrument (SPPI test on the characteristics of the financial instrument).
  • The portfolio at fair value through profit or loss.
  • The portfolio at fair value through recyclable OCI.
  • The portfolio at fair value per OCI is not recyclable.
  • Upgrades:
    • Summary of the transition from the old categories to the new ones.
  • The various portfolios on the liabilities side:
    • Liabilities measured at amortised cost.
    • Trading activities.
    • The various “fair value options”.
    • Own credit risk.
  • The format of banks' financial statements under IFRS 9 (ANC 2017-02).

Part 3. IFRS 9: Impairment of Financial Assets

  • The weaknesses of the current system.
  • The expected loss model vs. the actual loss model.
  • The concepts of expected losses (EL) 12 months and at maturity.
  • The three credit risk assessment portfolios.
  • The specific case of impairment of the portfolio at fair value by recyclable OCI.

Part 4. IFRS 9: Hedge Accounting

  • Designation of hedging instruments.
  • Definition of items covered.
  • The new conditions for qualifying hedging transactions:
    • Economic link.
    • Virtually no credit risk.
    • Coverage ratio.
  • Discussion paper on macro-hedging.

Part 5. Other Topical Issues

  • An update on accounting news based on new texts and projects.

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