This course provides an in-depth analysis, application methodology and strategy for implementing IFRS 9 on financial instruments, including hedge accounting and the treatment for expected credit loss.
Delegates will focus on implementation issues and challenges and discuss case studies on practical application of the standard. You will have an understanding on “what was” and “what will be” in the world of accounting for financial instruments.
IASB has published the new standard on financial instruments – IFRS 9. This standard replaces IAS 39. Amendments have been made in the classification and measurement of financial assets and a new model for impairment has been introduced. Hedge accounting is also challenging to implement. This course will help to clarify these issues and help you to get ready to plan your strategy for the transition to the modified standard.

TARGET COMPETENCIES

The key topics covered are:​

• ​Context of IFRSs and IPSASs​
• Financial statement presentation​
• Funding, revenue and expenditure​
• Asset and liability reporting​
• Entity consolidation and combination​
• Disclosure and other matters.​

WHO SHOULD ATTEND ?

This well-researched course will benefit executives who are responsible for the finance and accounting functions in their organisation .

• Finance Directors
• Head of Finance
• Chief Finance Officers
• Accounts Managers
• Accountants
• Auditors
• Analysts

Organisations consider this course as a great opportunity to train their young officers in the complexities of accounting in the industry.

COURSE OUTLINE

Introduction to IFRS 9

The aim of this section is to provide a background to IFRS 9, its effective date, an overview of transition requirements and to introduce the key topics covered in the standard.

·         The catalyst for change: Issues with IAS 39 and the 2008 global financial crisis

·         IFRS 9 adoption: Effective date, transition requirements

·         Key topics in IFRS 9: Recognition of financial instruments, classification and measurement, impairment, de-recognition and hedge accounting

·         Case study: Application of the principle of substance over legal form to the recognition of financial liabilities and equity instruments

·         Classification and Measurement of Financial Assets and Financial Liabilities

·         The aim of this section is to explain the classification of financial assets and financial liabilities, initial and subsequent measurement and de-recognition principles.

·         Classification and measurement of financial assets

·         Recap of IAS 39 classification and measurement: Fair value through profit or loss, held-to-maturity, loans and receivables, and available-for-sale financial assets

·         IFRS 9 classification: Amortized cost, fair value through profit or loss and fair value through other comprehensive income – different treatment for debt and equity instruments

·         Fair valuation: Credit valuation adjustment, debit valuation adjustment and fair value hierarchy

·         Embedded derivatives: Simplified approach in IFRS 9

·         De-recognition of financial assets: IAS 39/IFRS 9 complexity, IFRS 9 disclosure changes

·         Case study: Analyze the impact on the financial statements of applying the business model and cash flow characteristic tests which determine the classification of financial assets

·         Recap of IAS 39 classification: Fair value through profit or loss, amortized cost

·         Own credit risk issue: IAS 39 anomaly, IFRS 9 accounting for fair value movements due to changes in own credit risk of financial liabilities at fair value through profit or loss

Impairment of Financial Assets

·         The aim of this section is to review the principles contained in the expected credit loss impairment model and analyze its impact on loss provisioning within the financial statements.Incurred losses vs. expected losses

·         Recap of IAS 39 impairment principles: Application to financial asset categories, objective evidence and measurement

·         Introduction to IFRS 9 impairment model: Background, scope of the model, financial and non-financial impact

·         Application of IFRS 9 impairment model

·         Three-stage approach: 12-month expected credit losses, lifetime expected credit losses, calculation of interest income

·         Assessment of significant changes in credit risk

·         Individual and collective assessment of impairment

·         Default: Definition, changes in the risk of default and estimating expected credit losses

·          Purchase/origination of credit-impaired financial assets

·         Simplification and practical expedients: Trade receivables, contract assets, lease receivables and low credit risk assets

·          Implementation challenges: Data availability, estimates, judgements and assumptions

·         Case study: Measurement of IAS 39 vs. IFRS 9 impairment and its impact on loss provisioning in financial statements

Hedge Accounting

·         The aim of this section is to evaluate the issues with IAS 39 hedge accounting and how IFRS 9 adopts a more principles-based approach.

·         Introduction and background to IFRS 9 hedge accounting

·          Recap of IAS 39 hedge accounting: Types of hedges – fair value, cash flow and net investment hedge, accounting for different types of hedges

·         Background to IFRS 9: Issues with IAS 39 hedge accounting, primary areas addressed and macro hedging IFRS 9 updates

·         New hedged exposures: Risk components, synthetic positions, net positions, equity investments at fair value through other comprehensive income

·         Use of hedging instruments: Non-derivatives, accounting for time value of options, forward points and foreign currency basis spread

·         Hedging relationship: Hedge effectiveness, modifications, discontinuation

·         Disclosures: Amendments to IFRS 7 financial instruments disclosures

·         Case study: Fair value and cash flow hedge accounting and analysis

General Notes

·         All our courses can be Tailor-made to participants' needs

·         The participant must be conversant in English

·         Presentations are well-guided, practical exercises, web-based tutorials, and group work. Our facilitators are experts with more than 10 years of experience.

·         Upon completion of training the participant will be issued with a Foscore development center certificate (FDC-K)

·         Training will be done at the Foscore development center (FDC-K) centers. We also offer inhouse and online training on the client schedule

·         Course duration is flexible and the contents can be modified to fit any number of days.

·         The course fee for onsite training includes facilitation training materials, 2 coffee breaks, a buffet lunch, and a Certificate of successful completion of Training. Participants will be responsible for their own travel expenses and arrangements, airport transfers, visa application dinners, health/accident insurance, and other personal expenses.

·         Accommodation, pickup, freight booking, and Visa processing arrangement, are done on request, at discounted prices.

·         Tablet and Laptops are provided to participants on request as an add-on cost to the training fee.

·         One-year free Consultation and Coaching provided after the course.

·         Register as a group of more than two and enjoy a discount of (10% to 50%)

·         Payment should be done before commence of the training or as agreed by the parties, to the FOSCORE DEVELOPMENT CENTER account, so as to enable us to prepare better for you.

·         For any inquiries reach us at training@fdc-k.org or +254712260031

 

·         Website:www.fdc-k.org