Introduction
IFRS 9 is a new accounting standard published by the International Accounting Standards Board covering the measurement of financial instruments, asset impairment and hedge accounting. IFRS 9 specifies how an entity should classify and measure financial assets and liabilities. This course is aimed at equipping the participants with the knowledge and skills to understand IFRS 9 and how to adopt the new international accounting practices in financial reporting.
Duration
5 Days
Who Should Attend
This course is recommended for finance managers, accountants, auditors, operations managers, information technologists, risk management managers and other professionals from financial and accounting institutions who want to build their knowledge on IFRS 9.
Course Level:
Course Objectives
By the end of this IRES course the participants will be able to:
- Analyse financial instruments to differentiate between liabilities, equity, or a combination of both
- Apply the principles for classification, initial recognition and subsequent measurement of financial assets and financial liabilities in IFRS 9
- Evaluate the principles of fair value measurement in IFRS 13
- Determine the accounting for derivatives and embedded derivatives
- Compute the effective interest rate and apply the effective interest method for measurement of financial instruments at amortised cost
- Apply the derecognition principles to financial assets and financial liabilities
- Apply the expected credit loss model and calculate impairment losses for financial assets
- Obtain an overview of hedge accounting and analyse the requirements in IFRS 9
- Comply with the extensive disclosure requirements of IFRS 7
- Analyse the impact of COVID-19 on IFRS 9 Application
Course Outline
Module 1
- Introduction
- Introduction to IFRS 9
- Recap of IAS 32 Financial Instruments
- Presentation – financial liability versus equity instruments, compound financial instruments and offsetting
- Classification of financial assets and financial liabilities
- IFRS 9 Classification: Amortized cost, Fair value through other comprehensive income and Fair value through profit or loss
- Business Models criteria
- Solely Payments of Principal and Interest (SPPI)
- Fair value option
- IFRS 9 Classification: Amortized cost, Fair value through other comprehensive income and Fair value through profit or loss
Module 2
- Measurement of financial assets and financial liabilities
- Initial recognition including treatment of transaction costs
- Subsequent measurement
- Amortised cost
- Fair value measurement (IFRS 13)
- Reclassification of financial assets
- Fair value movements due to own credit risk in financial liabilities at fair value through profit or loss
- Accounting for derivatives and embedded derivatives
Module 3
- Amortised cost financial assets
- Computing the effective interest rate
- Applying the effective interest method under various scenarios
- Plain vanilla bonds
- Variable rate instruments
- Financial assets that are pre payable
- Loan commitments
- Fee income and loan origination costs
- Financial guarantees
- Repossessed assets
- De-recognition principles
- Derecognition of financial assets
- Determining whether a transfer has occurred
- Transfer/retention of substantially all risks and rewards
- Retaining “control” and measurement of continuing involvement
- Derecognition of financial liabilities
- Derecognition of financial assets
Module 4
- Impairment of financial assets
- Introduction to IFRS 9 expected credit loss model – background, scope and impact of the model
- Application of IFRS 9 expected credit loss model
- 12-month and lifetime expected credit losses
- Staging of financial assets
- Determination of significant increases in credit risk
- Measurement of expected credit losses
- Modified financial assets
- Simplification and practical expedients
- Purchase/origination of credit-impaired financial assets
- Loan commitments and financial guarantee contracts
Module 5
- Hedge accounting
- Overview of hedging and accounting for three types of hedges – fair value, cash flow and net investment hedge
- Impact of hedge accounting for interest rate and foreign exchange risk
- IFRS 9 hedge accounting model
- Hedged items
- Hedging instruments
- Qualifying criteria
- Groups and net positions
- Hedge documentation
- Hedge effectiveness requirements
- Rebalancing
- Discontinuation
- IFRS 7 Financial instruments disclosures
- Updates
- Impact of COVID-19 on IFRS 9
- Interest rate benchmark reform
- Macro-hedging
Related Courses
Course Administration Details:
Methodology
These instructor-led training sessions are delivered using a blended learning approach and include presentations, guided practical exercises, web-based tutorials, and group work. Our facilitators are seasoned industry experts with years of experience as professionals and trainers in these fields. All facilitation and course materials are offered in English. Participants should be reasonably proficient in the language.
Accreditation
Upon successful completion of this training, participants will be issued an Indepth Research Institute (IRES) certificate certified by the National Industrial Training Authority (NITA).
Training Venue
The training will be held at IRES Training Centre. The course fee covers the course tuition, training materials, two break refreshments, and lunch. All participants will additionally cater to their travel expenses, visa application, insurance, and other personal expenses.
Accommodation and Airport Transfer
Accommodation and Airport Transfer are arranged upon request. For reservations contact the Training Officer.
- Email: [email protected]
- Phone: +254715 077 817
Tailor-Made
This training can also be customized to suit the needs of your institution upon request. You can have it delivered in our IRES Training Centre or at a convenient location. For further inquiries, please contact us on:
- Email: [email protected]
- Phone: +254715 077 817
Payment
Payment should be transferred to the IRES account through a bank on or before the start of the course. Send proof of payment to [email protected]
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