IFRS 9 Financial Instruments 

The new accounting standard for financial instruments IFRS 9 is coming into effect in 2018, and will have a significant impact on International banks and financial institutions worldwide.  IFRS replaces IAS 39 Financial Instruments: Recognition and Measurement, thus making this updated knowhow vital to todays professionals.

Numerous changes are in place, designed to make annual reports more meaningful to investors as well as simplifying how auditors implement the rules and introduce safeguards to ensure that a severe credit crisis cannot emerge again.

Course Content

Classification of Financial Instruments (IFRS 9)

• Financial Assets
• Debt Instruments
• Equity Instruments
• Fair value option
• Financial Liabilities
• Comparison with IFRS 39

Initial and Subsequent Measurement (IAS 39, IFRS 9)

Issue of ‘Entity’s Own Credit Risk’ (IFRS 9)

Impairment of Financial Assets (IAS 39 and IFRS 9)

• Objective evidence of impairment under IAS 39
• Measurement of the amount of impairment under IAS 39 and IFRS 9
• Recognition and reversal of impairment losses
• Comparison of the incurred loss model under IAS 39 and the expected loss model under IFRS 9

Effective Interest Method (IAS 39 and IFRS 9)

• Calculation of the effective interest rate
• Application of the effective interest method
• Application of the effective interest method after recognition of impairment losses

Derecognition of Financial Assets (IAS 39 and IFRS 9)

• Determining whether a ‘transfer’ has occurred
• Transfer / retention of substantially all risks and rewards
• Determining whether an entity retains control
• Measurement of the amount of ‘continuing involvement’

Derecognition of Financial Liabilities (IAS 39 and IFRS 9)

Derivatives and Embedded Derivatives (IAS 39 and IFRS 9)

• Accounting for derivatives
• Applying the ‘separation’ criteria to embedded derivatives (IAS 39)

Overview of Hedge Accounting (IAS 39 and IFRS 9)

• Accounting for cash flow, fair value, and net investment hedges under IAS 39
• Documentation and effectiveness requirements
• Discontinuation of hedge accounting
• Changes to hedge accounting in IFRS 9
• Discussion Paper on macro hedging

IAS 32 Financial Instruments: Presentation

• Distinguishing between liabilities and equity
• Compound financial instruments

Presentation and Disclosures (IFRS 7)

Who should attend

The course will be of benefit professionals as follows:

• Credit Risk Modelling
• Credit Risk Management
• Impairment modelling
• Loss impairment
• IFRS 9 Programme Manager
• Model Validation
• CRO
• Compliance Analyst
• Regulatory Analyst
• Internal Audit
• Finance Manager