Highly technical, Market-Driven IFRS training Courses

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1 Highly technical, Market-Driven IFRS training Courses IFRS 9 - The Latest Updates Risk & Capital Management Under Basel III and IFRS 9 IFRS 9 Accounting For Financial Instruments IFRS Accounting for Transactions in Corporate Control (M&A) IFRS Accounting for Investments IFRS Accounting for Real Estate web: redliffetraining.co.uk enquiries@redcliffetraining.co.uk phone: +44 (0)

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3 IFRS 9: The Latest Updates Date: 21 Mar 2018, 18 Oct 2018 Location: London Standard Price: VAT Membership Price: VAT BOOK NOW Course Overview International Financial Reporting Standard 9 ( IFRS 9 ) is the accounting standard for financial instruments, which 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 will become effective in 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. 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 Amortised Costs; Fair value through Profit & Loss (FVTPL); Fair value through Other Comprehensive Income (FVTOCI) Accounting treatment determined by (i) business model (ii) nature of cash flows Decision tree to decide on classification of financial instruments Balance sheet and P&L calculation of a bond at amortized cost Based on the Internal Rate of Return (IRR) of future cash flows Treatment of fees in the IRR calculation Balance sheet and P&L calculation of a bond at FVTPL and FVTOCI Effective interest rate method for interests (same as amortised costs) Unrealised gain based on NPV at current yield of future cash flows Reminder on determining fair value Level 1 based on unadjusted quoted price Level 2 based on quoted price in inactive markets or observable model input Level 3 based on unobservable but significant inputs to the overall 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 Stage 1: 12-month expected credit losses with effective interest rate on gross on gross carrying amount Stage 2: life-time expected credit losses with effective interest rate on gross on gross carrying amount Stage 3: life-time expected credit losses with effective interest rate on gross on amortised costs 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 FVT- PL Own credit deterioration reduces institutions To book this course or find out more, please click the Book button

4 IFRS 9: The Latest Updates Continued... BOOK NOW 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 Cash flow hedge Fair value hedge Net investment hedge for foreign subsidiaries Accounting treatment for 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 Removal of hedge effectiveness criteria (80% to 125%) Extends eligibility of risk component to include non-financial items Permits aggregate exposure that includes a derivative to be eligible hedged item Group of items and a net position (e.g. assets & liabilities or forecast sales & purchases) hedged collectively as group 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 To book this course or find out more, please click the Book button

5 Risk & Capital Management Under Basel III and IFRS 9 Location: London Date: 4-8 Dec 2017 Standard Price: 3,250 + VAT Membership Price: 2,600 + VAT Course Overview BOOK NOW Who Should Attend? Board of Directors Senior Bank Management Members Central Bankers (Supervision Department) ALCO Managers Chief Risk Officers Treasury Executives Risk Managers Chief Finance Officers Finance Directors Comptrollers Portfolio Managers Securities Analysts Insurance Executives Pension Fund Managers Pension Fund Trustees Investment Professionals MIS and Operations Executives Budgeting & Planning Executives DAY ONE Overview and dynamics of Capital Management Concepts & Definition The role of capital and its significance Key aspects to capital management The development of capital standards for banks Overview of capital allocation in banking Perspectives on Capital; Treasurer s view, Regulators Views, Risk Manager s view & shareholders view Composition of capital- Tier 1, Tier 2 & Tier 3 Regulatory vs. Economic Capital The concepts pf Expected vs. Unexpected Losses The concept of capital efficiency Structure and dynamics of Balance Sheet Capital Allocation Models Concept & Overview Approaches to Optimization Assets volatility Approaches Regulatory Capital Approaches Risk-adjusted Models RAPM- Risk-adjusted Performance Measure RAROA- Risk-adjusted Return on Assets RAROC- Risk-adjusted Return on Capital Earnings Volatility Models EAR- Earnings-at-Risk Model Functioning of Capital Management The four As of Capital Management Adequacy Attribution Allocation Architecture Determining the optimal level & mix of capital Strategic considerations for optimum capital Bank s Insolvency probability Managing the bank s capital adequacy Determining the bank s overall capital plan CASE STUDY: Group discussion on the different variables that should be considered for determining the optimum level of capital and the various models for capital allocation. DAY TWO Liquidity Risk & Management Liquidity Concepts Bank Liquidity Risk Concept & Definition To book this course or find out more, please click the Book button

6 Risk & Capital Management Under Basel III and IFRS 9 Continued... BOOK NOW Types of Liquidity Risks The Role of Confidence Liquidity & Activity Ratios Leverage & Default Issues Contingency Planning Measuring Bank Liquidity The Cash-Flow Approach Large Liability Dependence Core Deposits To Assets Loans & Leases to Assets Loans & Leases to Core Deposits Temporary Investments to Assets Brokered Deposits to Total Deposits Market-to-Book Value Dynamics of Liquidity Management The Formation of Expectations Liquidity Planning Faces of Liability Management Minimizing Deposit Interest Costs Customer Relationships Circumventive Regulatory Restrictions Deposit Rate Ceilings Reserve Requirements Pricing & Methods of Deposit Insurance CASE STUDY: Hypothetical numerical cases on assessing & quantifying the sensitivity of the bank s financial transactions on its cash flows & NII. CASE STUDY: Group discussion on the different variables affecting the bank s liquidity position & the main contributions for illiquidity- A focus on Lehman Brothers rise & fall in 2008 DAY THREE Interest Rate Risk- Overview & Measurement Modeling interest rate risk Deterministic vs. Stochastic models Arbitrage models Equilibrium models Types of Interest Rate Risks Yield Curve Risk Basis Risk Macaulay Duration Modified Duration Core Elements of Duration Convexity Concept Duration gap of Equity Earnings versus Shareholder Value Effective Duration & Effective Convexity Hedging Duration & Convexity Concept of Negative Duration Key Rate Duration Math of Sensitivity Parameters Measuring Risk Techniques Sensitivity Parameters Simulation Methodologies Rate Shocks Simple Simulation Historical Simulation Monte Carlo Simulation Transfer Pricing as a Tool Value-at-Risk Core Elements of VAR VaR Greeks & Math Correlation & Covariance VaR Methodologies Implementation of VaR CASE STUDY: Hypothetical numerical cases on assessing & quantifying the sensitivity of bonds & other optionembedded fixed-income securities to different parallel & un-parallel changes & twists in the yield curve. Interest Rate & Credit Management Techniques Interest Rate Derivatives Interest Rate Swaps Generic versus complex structures of Swaps Interest Rate Options Interest Rate Futures Forward-Rate Agreements Credit Derivatives Types of Credit Derivatives Credit Default Swaps Total Return Swaps Credit Options; Standard and Exotic Spread Options Credit-Lined Noted (CLNs) Collateralized Bond Obligations (CBOs) Collateralized loan Obligations (CLOs) CASE STUDY: Hypothetical numerical live case on the use of a wide gamut of derivatives instruments & structured products for coping with negative as well as positive duration gaps in a bank s balance sheet. CASE STUDY: Hypothetical numerical live cases on valuing & pricing different traditional & exotic on & off balancesheet products and their implications on the bank s gap position. To book this course or find out more, please click the Book button

7 Risk & Capital Management Under Basel III and IFRS 9 Continued... BOOK NOW CASE STUDY: Hypothetical numerical case on the concept of Bootstrapping & constructing the zero-coupon yield curve. DAY FOUR From Basel II to Basel III Basel III Structure & main elements Chronology of phasing-in the new Basel 3 standards Basel III Pillars & new limits Risk-based Capital Measures Basel III new capital requirements Redefining Capital Capital Ratios Capital Buffers Components of Capital New concepts of Common Equity & Tier 1 capital Basel 3 Treatment limits for Tier 1 and Tier 2 & 3 Capital ratios Allowable Capital Deductions Basel 3 treatment for hybrid investments Basel 3 Standards for Minority interests Unconsolidated Financial Institutions Deferred Tax Assets Mortgage servicing-rights Total risk-based capital Capital Conservation ratio & Countercyclical ratio Non-risk-based measures Leverage ratio Concept of Systematic Banks Timing & Transitional Arrangements Basel III Liquidity Kit Definitions and scope Objectives of Basel 3 Liquidity package New liquidity standards Liquidity coverage ratio- LCR Appropriate Asset Levels for LCR Inclusion Net Stable Funding Ratio Timing & Transitional Arrangements Interfacing between Basel III & Risk Management Changing rules of the game Modus operandi of Basel III Basel III Mechanics for credit risk Basel III Mechanics for liquidity risk Basel III Mechanics for Ops Risk Effective date & transition Key differences between IFRS 9 and old IAS 39 rules New standards for the accounting of financial standards Convergence with U.S. GAAP Phases of IFRS 9 Standard Classification & Measurement of financial assets & liabilities Impairment Hedge Accounting Dynamics & Modus Operandi of IFRS 9 Measurements of Financial Assets Amortized Cost Models; Hold-to-Collect Business Model and SPPI Contractual Cash Flow Characteristics Test - Payments of Principal & Interest Fair Value through other Comprehensive Income (FVOCI) for debt instruments and equity investments. Fair Value through Profit & Loss (FVTPL) Implications of the new accounting rules on financial reporting, thereby on business decisions as well as capital and risk management Overview of the new Impairment model General Impairment Model Recognition of Impairment- 12-month ECL (Expected Credit Losses) Lifetime Expected Credit Losses Hedge Accounting Qualifying criteria & Effectiveness testing Hedged Items Aggregate Exposures Hedging Instruments Derivatives & Hybrid contracts Expected Credit Loss Module (ECL) PD (probability of default) LGD (Loss given default) EAD (Exposure at default) CCF (Credit Conversion Factor) Bridging the gap between IFRS 9 standard and ALM activities Impact of IFRS 9 ECL on balance sheet management Credit Adjusted ALM CASE STUDY: Group discussion on the challenges facing banks & financial institutions, struggling for the implementation of IFRS 9, prior to the final date of January DAY FIVE IFRS 9: Overview & Concepts Definitions and scope Background & Objectives CASE STUDY: Group discussion on the differences between the new IFRS 9 and the old IAS 39; and the eventual impact on business and financial decisions as well as risk dimensions. To book this course or find out more, please click the Book button

8 IFRS 9: Accounting For Financial Instruments In House Course Overview ENQUIRE NOW This course has been designed to provide both a strategic overview and technical insight into the new IFRS 9 regime for financial instruments, with special emphasis on how the radical changes from the existing IAS 39 regime will affect the work of investors, advisers, deal-doers and analysts. After several years delay, the IASB published in July 2014 the final text of the comprehensive new standard IFRS 9 Financial Instruments. This combines revised versions of previously published sections (Classification and Measurement of Financial Assets and Liabilities, and Hedge Accounting) with the first publication of the final and most controversial section: Impairment. Despite the deceptively long lead time for adoption of the new standard (it becomes mandatory only for accounting periods beginning on or after 1st January 2018), the transition process confronts preparers and users with operational and commercial challenges comparable only with those posed by the original adoption of IFRS in Overall, the jury is firmly out, and will remain so for several years, on the key question: how will IFRS 9 affect the comparability of reporting institutions, across business types, across borders, and across time? Course Themes The systematic shift away from rules and towards principles radically increases the importance of management intention (in entering into transactions), and the scope for management judgement (in estimating their accounting value and commercial impact). The new regime calls for very substantial increase in disclosures, especially in the commercially and political sensitive area of impairament. The IFRS 9 methods for measuring revenue, expense, gains and losses from financial instruments are broadly similar to IAS 39, but the criteria for employing each of them are radically different. This will cause major and unpredictable shifts in P&L recognition, both between the income statement and equity (via other comprehensive income), and between accounting periods. The shift from an incurred loss to an expected loss model for impairment will result in earlier and higher provisioning, but its implementation will be both complex and subjective, and the outcome will still fall short of through-the-cycle methodology espoused by the regulators in the wake of the global financial crisis. The new regime for hedge accounting, while partially achieving its avowed objective of reflecting real-life risk management, might actually bring little if any additional transparency to the user s perspective. IFRS 9 Overview - 1: Some good news More principle-based than the existing rules-based IAS 39 regime Fewer categories, fewer specific and confusing rules for classification and reclassification Accounting treatment to be determined by (i) business model and (ii) nature of cash flows All-new impairment model based on industry-standard expected loss, not incurred loss Hedge accounting more flexible and aligned to risk management policy and practice IFRS 9 Overview - 2: Some not-so-good news Criteria for basic accounting treatment: vague and untried (either in IFRS or elsewhere) Default treatment for financial assets: Fair Value through Profit or Loss (no longer AFS) Accounting mismatches: still not eradicated Disclosures of credit risk (impairment) and hedge accounting: substantially more onerous Still no hedge accounting for dynamic (portfolio-based) hedging operations Still no IFRS standard for insurance activities Resource implications are unclear, but some areas (impairment) are clearly problematic Problem areas in classification and measurement of financial assets / liabilities Applying the business model test: does it reflect how the entity actually runs its business? Applying the cash flow test: do all products fall readily into the right category? Does the new regime eliminate existing accounting mismatches (e.g. between cash and derivative positions) or does it create new ones? Problem areas in Impairment How does the entity estimate 12-month ex- To book this course or find out more, please click the Enquire Now button

9 IFRS 9: Accounting For Financial Instruments Continued... ENQUIRE NOW pected credit losses? (Stage 1) How does the entity determine whether credit risk has increased significantly? (Stage 2) To what extent does the new regime result in earlier provisioning and lower published profits? Does the new regime mitigate or aggravate the existing tensions between the accounting and regulatory numbers, and how will management reconcile them? Presentation and disclosures How does IFRS 9 redistribute the entity s results as between P&L and OCI? How does IFRS 9 relate to the regulatory regime? And finally How will IFRS9 affect the perceptions and behaviours of shareholders and other stakeholders? Hedge accounting Taken as a whole, is the new regime more or less friendly to how the entity does business? How does the new regime affect the entity s ability to support customer needs and manage its own interest rate, foreign currency and liquidity risk? To book this course or find out more, please click the Enquire Now button

10 IFRS Accounting for Transactions in Corporate Control (M&A) In-House ENQUIRE NOW Course Overview This intensive course is designed to give a comprehensive insight into the principles and practice of IFRS accounting and reporting for the full range of transactions under the general umbrella of M&A. In addition to transactions where there is a full change of control, it also considers transactions involving joint control and significant influence (i.e. associate status) and transfers among each of these categories. Transactions are considered from the perspectives of all participants (i.e. selling and target entities as well as buyer). The course will reflect the latest state of the following recently introduced or amended accounting standards and of emerging practice with regard to each of them: IFRS 3 - Business Combinations IFRS 10 - Consolidated Financial Statements IFRS 11- Joint arrangements IFRS 12 - Disclosure of Interests in Other Entities IFRS 13 - Fair Value Measurement IAS 27 - Separate Financial Statements IAS 28 - Investments in Associates and Joint Ventures The course will also offer a preview of the principal relevant changes resulting from the impending replacement of IAS 39 Financial Instruments: Recognition and Measurement by IFRS 9 Financial Instruments, as well as an insight into the main differences between IFRS as published by the IASB ( full IFRS ) and the UK s recently introduced FRS 102 and associated regulations (so-called IFRSlite ). The course is interactive in approach and participants are encouraged to bring their own experience (and problems) to bear on group discussions and on the many (almost exclusively real-world) case studies and exercises with which the course is illustrated - and enlivened. The concept of control Parent and subsidiary undertakings Special purpose entities and arrangements Quasi-subsidiaries Review of key concepts for business combinations and associated transactions: principles and applications Control Significant influence Joint control A business Accounting for acquisition and disposal of full control Deciding whether the subject is a business or a collection of assets: pros and cons of each Identifying the acquirer, the seller and the date of acquisition Identifying all assets and liabilities (including previously unrecognised intangibles) Establishing fair values Treatment of transaction costs Calculating goodwill (also negative goodwill) Acquiring control in stages Treatment of deferred and contingent consideration Provisional and final valuations Relinquishing control in stages Transitions to and from associate or JV status Accounting for acquisition in standalone accounts of parent Consolidation procedures Adjustment to parent company accounting policies Adjustment to fair values Elimination of intercompany items Non-controlling interests: share of net assets or full goodwill basis? Allocation of goodwill across CGUs for future impairment reviews Treatment of foreign currency translation gains and losses Special cases 1: Parent and subsidiary with different functional currencies Special cases 2: Exemption for consolidation for assets held for resale Special cases 3: SPVs consolidate or not? Does accounting treatment necessarily follow regulatory treatment? Disclosures: Initial disclosure of the transaction itself Subsequent disclosures, e.g. related party transactions Accounting for equity method investments Applying the significant influence and joint control criteria in practice: some counter-intuitive cases Equity accounting for associates in consolidated financial statements Establishing the initial share of net assets Goodwill (initial and after subsequent review) Changes in value of share of net assets: To book this course or find out more, please click the Enquire Now button

11 IFRS Accounting for Transactions in Corporate Control (M&A) Continued... ENQUIRE NOW distributions Elimination of proportion of intercompany profits and losses Special considerations for accounting for joint arrangements: Joint operations or joint venture? Equity accounting for joint venture (no more proportional consolidation ) Transitions to and from associate/jv status Some special topics Secondary impact of transactions on eps, banking covenants, investor ratios and public perceptions Impact of IFRS 13 Fair Value Measurement on initial accounting and on subsequent impairment and impairment reversal reviews Hedging / hedge accounting for M&A transactions (under IAS 39 and IFRFS 9) Hedging / hedge accounting for ongoing net investment in foreign undertaking (under IAS 39 and IFRS 9) Overview of principal changes in IFRS 9 as regards accounting for portfolio equity instruments: introduction of new Fair Value through OCI category new enhanced disclosure requirements To book this course or find out more, please click the Enquire Now button

12 IFRS Accounting for Investments In-House ENQUIRE NOW Course Overview This course is intended as a detailed workshop on IFRS for participants who are already familiar with the basics of accounting for investment activities, and who need to deepen and reinforce their understanding of this particularly complex area of accounting, both at the strategic and at the technical level. The course will primarily focus on the problems of applying general-purpose accounting standards to the special circumstances of the client s own investment activities. Training Methodology: This intensive programme is strongly focused on the application of the relevant provisions of IFRS to a wide variety of real-life situations. It is designed as a hands-on experience for the participants, with a minimum of chalk-and-talk and a maximum of interaction among participants and between them and the trainer. Participants will be encouraged to bring their own experience and problems to bear on the topics covered by the programme. The outline is to be taken as indicative only, and subject to detailed discussion of the client s specific needs. For instance, it can readily be modified to accommodate sessions on IAS 20 (Government Grants) and IAS 24 (Related Parties) if these were to be of interest. Day One: Investment asset classification under IFRS Financial investments, and the principal criteria for distinguishing between: Equity interests in subsidiaries Equity interests in associates and joint ventures Financial instruments (i.e. portfolio investments) Non-financial investments: Property (real estate) Alternative investments Financial instruments in detail - 1: the balance sheet Detailed rules for; Recognition Initial measurement Subsequent remeasurement Derecogntion Difference between equity and debt The Fair Value categories: Fair Value through Profit and Loss, and Available for Sale The amortised cost categories: Held To Maturity, and Loans and Receivables Permitted reclassifications Making sense of the available alternatives: why HTM is so unpopular and AFS is so popular Accounting for derivatives including embedded derivatives Impairment Financial instruments in detail - 2: the income statement The amortised cost (effective interest rate) model, and its detailed application to special cases such as; Floating rate investments Foreign currency investments Prepayments and restructurings Non-financial investments Real estate: the cost model and the fair value model Accounting for leases, both as lessor and lessee Impairment and impairment reversal Special cases: unique ( iconic ) buildings for which no market price is available Commodities and other alternative investments Day Two: Valuing listed and marketable equity investments The fair value hierarchy: Mark to market Mark to model (observable inputs only) Mark to model (some unobservable inputs) Problems associated with large (i.e. potentially unmarketable) holdings: when premiums and discounts should be applied Valuing equity investments 2: Strategic and unlisted holdings Basics of company valuation: the three families of methods and their limitations; Book value Market multiples Discounted cash flow Theoretical and practical challenges associated with each Case studies Hedging and hedge accounting Rationale for hedge accounting, and comparison with Fair value Option Mechanics of hedge accounting for Fair value hedges Cash flow hedges Update on recent and impending developments Progress report on those parts of IFRS 9 (replacement for IAS 39) so far published Pending changes to the rules on: Amortised cost and impairment Hedge accounting To book this course or find out more, please click the Enquire Now button

13 IFRS Accounting for Real Estate In House ENQUIRE NOW Course Overview After a long period of stability, the IFRS regime for real estate assets and transactions is entering a period of rapid change and elevated uncertainty, with the imminent introduction of three major new financial reporting standards. IFRS 16 Leases, effective from 1st January 2019, substantially and controversially redraws the boundaries between operating and finance leases: IFRS 9 Financial Instruments, effective from 1st January 2018, brings all lease receivables into the scope of compulsory impairment provisioning based on expected credit losses; and IFRS 15 Revenue from Contracts with Customers, also effective from 1st January 2018, whilst retaining the basic IFRS principles for revenue recognition, calls for much more attention to be paid to the unbundling of the separate components in longer-term contracts. At the same time, continued dissatisfaction with IFRS-based numbers, specifically as a basis for cross-border intercompany comparisons, underlines the importance of the industry-specific non-gaap performance measures developed by EPRA. This course has four principal objectives. It is intended: to give preparers and users alike a comprehensive and tailored overview of the forthcoming changes to the IFRS regime as it impacts entities exposed to the real estate sector, as investors, owner-occupiers, lessors or lessees to give preparers of accounts a firm basis for planning the practical implementation of the IFRS and EPRA reporting regimes to enable senior managers of entities exposed to the real estate sector (in whatever capacity) to modify their decision-making processes to take account of the new accounting environment, especially in those areas where the standards permit or require the exercise of significant judgement to equip investors and analysts with the necessary new knowledge and skills to make informed judgements about the financial performance, condition and prospects of entities exposed to the real estate sector The course is essentially forward-looking and is accordingly based on IFRS accounting standards as published, regardless of their EU-endorsement status or their effective dates for mandatory adoption. At every stage, the course will pinpoint the areas of continuing uncertainty and difficulty in the new standards, whether in their interpretation, application or implementation by preparers, or in their analysis by external users. The course makes extensive use of real-life comparative case studies and of fully worked examples. Owned property: refresher on the (largely unchanged) accounting requirements: IAS 16, IAS 23 and IAS 40 Choosing between cost model and fair value model Cost model: how to determine Initial cost including borrowing costs and appropriate depreciation schedule Identification and allocation of cost to separable elements Identifying relevant indicators for impairment review Estimating recoverable amount: Value in use versus Fair value less costs to sell Fair value model: Estimating fair values (a) of unique assets and (b) in illiquid markets Setting valuation assumptions Trading and development properties The shifting boundary between ownership and leasing IAS 17 and IFRS 16 Overview of the key differences between IAS 17 and IFRS 16 Right-of-use asset defined Identifying a lease Allocating consideration to lease and nonlease (service) components of a contract Interaction between IFRS 16 and IFRS 15 Measuring a lease Leases with variable payments Lease modifications and options (extensions, terminations) Subleases Sale and leaseback transactions Available options and how/when to use them Detailed examination (from perspective of all parties) of typical transactions whose classification will change after transition to IFRS 16 Financial impacts Impact of IFRS 15 and 16 on published financial statements Impact of the IFRS 9 expected loss impairment regime for all lease receivables Impact on bank covenants and on modification of financings Other continuing issues (examples only) Rent-free periods and other incentives Tenants improvements Step-up rents Disclosures, especially regarding management judgements, impairment and revaluations EPRA performance measures, and the EPRAto-IFRS reconciliation To book this course or find out more, please click the Enquire Now button

14 The specialist in highly technical, market-driven banking and corporate finance training web: redliffetraining.com phone: +44 (0)