Applying IFRSs presents significant challenges for financial institutions. Recent changes to the accounting requirements for financial instruments also affect the related disclosures. The new standard on financial instruments, IFRS 9, is mandatory for annual periods beginning on or after 1 January 2018. Utilizing a highly interactive format, this course provides a comprehensive overview of the effects that the latest requirements have on the financial statements of financial institutions.
This three-day program offers invaluable guidance on meeting the requirements of current accounting principles and disclosure requirements. Coverage includes lending and repossessed assets, accounting implications of regulatory requirements, disclosures, and IFRS 13 Fair Value Measurement. The complex requirements of IFRS 9 Financial Instruments are discussed and explained. Numerous examples and illustrations are provided, including application of the effective interest method under various scenarios, retained servicing, loan commitments and financial guarantees, loan impairment and restructurings, and derivatives and hedging. Where applicable, IFRSs are contrasted with US GAAP requirements.
The theory and application of the standards is demonstrated with illustrative examples, complemented by application of the standards in an interactive group environment utilizing case studies, model financial statements, and practical exercises.
This course answers questions such as:
- What are the current IFRS reporting requirements for financial institutions?
- When and how can financial instruments be reclassified?
- What are the accounting requirements for loan losses, repossessed assets, and fee income?
- How are effective interest rates calculated for various financial instruments?
- What principles apply to the recognition, measurement, impairment, and derecognition of financial instruments?
- How does the ‘expected loss model’ in IFRS 9 compare with the IAS 39’s ‘incurred loss model’?
- What are the recognition and measurement principles for investment property?
- What are the other significant changes that will result from applying IFRS 9’s hedge accounting?
- What are IFRS 9’s transitional provisions?
- How are the disclosure requirements of IFRS 7 applied in practice?