IFRS 9 Financial Instruments Course (London, United Kingdom - May 18, 2020) - ResearchAndMarkets.com
The "IFRS 9 Financial Instruments" training has been added to ResearchAndMarkets.com's offering.
International Financial Reporting Standard 9 (IFRS 9) is the accounting standard replacing IAS 39 Standard for financial instruments and defines the classification, measurements and impairment of financial instruments. It is designed to make annual reports more meaningful to investors as well as simplify how auditors implement the rules and introduce safeguards to limit credit losses.
In July 2014, after several years of delay, the accounting regulators published the final text of IFRS 9. This combines revised versions of previously published sections with the first publication of the final and most controversial impairment section. IFRS 9 became effective in 2018.
This practical, computer based, 1-day course conducted by an expert with over 20 years of experience from the sector will look at treatment and calculation of different financial ratios under IFRS 9. Through many case studies and practical examples, you will explore the requirements for recognition and measurement, impairment, derecognition and hedge accounting.
Due to the nature of this program participants are required to bring laptops. We can provide one for an additional fee.
What will you learn
Through a mix of lecture and case studies, the workshop will equip participants to achieve a detailed understanding of the latest IFRS 9 standard, both for financial assets, liabilities and derivatives, including:
- The classification and measurement of financial instruments
- The new impairment methodology based on expected losses
- The fair value of financial liabilities and deterioration of institutions' own credit
- The different types of hedge accounting and the recent IFRS changes
Main topics covered during this training
- Introduction to IFRS 9 - Explanation, timeline, difference with IFRS 39
- Financial Assets Classification & Measurement
- Analysing Amortised Costs, Fair value through Profit & Loss (FVTPL) and Fair value through Other Comprehensive Income (FVTOCI)
- Accounting treatment determined by (i) business model (ii) nature of cash flows
- Decision tree for classification of financial instruments
- Balance sheet and P&L calculation of a bond at FVTPL and FVTOCI
- Financial Assets Impairments
- Financial Liabilities & Own Credit
- Hedge Accounting
- Many case studies
Key Topics Covered:
Session 1 - Introduction
- What is IFRS 9? How does it differ from IAS 39?
- What are financial assets and financial liabilities?
- IFRS 9 history and implementation overview
Session 2 - Financial Assets Classification & Measurement
- Presentation of the three different categories
- Accounting treatment determined by (i) business model (ii) nature of cash flows
- Decision tree to decide on the classification of financial instruments
- Balance sheet and P&L calculation of a bond at amortized cost
- Balance sheet and P&L calculation of a bond at FVTPL and FVTOCI
- Reminder on determining fair value
Case Study 1: participants will be presented with a few financial instruments and will classify them in their relevant categories
Case Study 2: participants will compute on Excel the impact on balance and P&L for different types of debt & equity instruments
Session 3 - Financial Assets Impairments
- Applies to amortized cost and FVTOCI mandatory fixed income instruments
- Incurred losses (IAS 39) has been replaced by expected losses (IFRS 9)
- Three stages process to determine impairments
- Accounting treatment for financial instruments already impaired when acquired
Case Study 3: participants will assess the credit deterioration of a Greek bond throughout the crisis and its different stages
Session 4 - Financial Liabilities & Own Credit
- Financial liabilities at amortised cost or FVTPL
- Own credit deterioration reduces institutions' liabilities
- Liability reduction due to rating downgrade to be now classified in OCI
Case Study 4: participants will assess the impact on credit deterioration on institutions' own bonds
Session 5 - Hedge Accounting
- Qualification for hedge accounting
- Different types of hedge accounting, same as IAS 39, except for time value of money and forward points in foreign exchange forward
- Accounting treatment for the time value of money for options: a two-step process through OCI
- Accounting treatment for foreign currency forward points in OCI
- IFRS 9 hedge accounting more closely aligned to risk management policy
Case Study 5: participants will classify a few hedging transactions in their relevant categories
Case Study 6: participants will value an interest rate swap accounted for as a cash flow hedge
Case Study 7: participants will review and assess different hedge scenarios including risk component hedging, aggregate exposures and net position
Speakers
Course Director is an experienced Corporate Finance professional with over 20 years' experience in M&A and capital market transactions. He has successfully completed in excess of EUR 30 billion across multiple geographies (US, Europe, MENA).He began his career as a Credit Analyst at Banque Continentale in Luxembourg, before moving to the Investment Banking division at Citigroup (ex-Salomon Smith Barney) in London and New York where he worked on variety of M&A, LBO and debt offerings, mainly for financial services clients. He became Vice-President in the internal M&A department of Barclays Bank in London before moving on to a Directorship role at the Investment Banking division of Commercial International Bank (CIB), Egypt. Whilst there, he successfully completed several transactions including two sell-side M&A, one follow-on equity offering and a delisting. He worked extensively with leading sovereign wealth funds, private equity firms and prominent families in the Middle East.
For more information about this training visit https://www.researchandmarkets.com/r/p3yrf6
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