Introduction to IFRS 9 for Corporates

There’s a perception that IFRS 9 only has big changes for banks, however, the impact on Corporates is also significant.

This workshop takes the perspective of the non-financial services Corporate in looking at key aspects of the new standard, including the new approaches to the classification & measurement of financial assets (business model and SPPI tests) and impairment (the new “expected credit loss” model). The workshop focusses on the practical considerations for companies operating outside the financial services area and provides a clearer understanding of the possible impact in applying the new standard.

Learning objectives 

Participants will have the opportunity to increase their knowledge of the requirements of the new standard, including new models and accounting which have been introduced.

The seminar emphasises aspects of the standard which might be more relevant to non-financial services companies. This provides preparers and auditors with an opportunity to receive a more focussed delivery of key changes which the new standard brings and consider how these might apply to them.

Course Content 

• Scope: We look at the types of asset and liability of a non-financial services Corporate entity which might be captured within the scope of the new standard.
• Financial assets – Classification & Measurement: We will provide an overview of the new classification types, explaining the business model and SPPI tests and how these might be applied from a Corporate viewpoint. We will also look at new requirements for equity instruments.
• Financial assets – Impairment: We will explain the new three-stage impairment model and key terms such as “significant increase in credit risk” and look at some of the practical expedients particularly relevant to Corporates, including the provisions matrix for trade receivables. We will also consider how intragroup loans might be affected.
• Financial liabilities: We explain the IFRS 9 requirements for accounting for modification of financial liabilities, which are relevant for Corporates renegotiating debt.
• Transition: We will look at the transition provisions within the standard, with a focus on some of the practical expedients available.
• Disclosure: We will provide an overview of the disclosure requirements, covering not only transition but also what companies might consider disclosing in the period before transition.

Who should attend

• Accountants/auditors
• Non-financial executives and directors with an active role in preparing, analyzing and presenting financial statements.