Introduction IASB standards applicable to financial instruments: IAS 32, IAS 39, IFRS 7, IFRS 9 and IFRS 13

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1 Course introduction IFRS 9 is effective from 1 January 2018 and replaces IAS 39 Financial Instruments: Recognition and Measurement. It introduces a logical, more principles-based approach to classification and measurement of financial assets based on the entity s business model and an instrument s cash flow characteristics. The new forward-looking impairment model requires earlier recognition, and ongoing assessment of credit losses. IFRS 9 s hedge accounting requirements are more principles-based and more closely aligned with the entity s risk management practices. This course provides an in-depth analysis of IFRS 9. It provides numerous examples and illustrations to explain the business model and cash flow characteristics test for classification of financial assets, amortised cost and fair value measurement of financial assets and financial liabilities, de-recognition of financial assets (retained servicing, continuing involvement etc.), measurement of expected credit losses and the accounting and impact of different types of hedges on financial statements. In addition, it covers the disclosures in IFRS 7 and the principles of fair value measurement in IFRS 13. The course is designed to help preparers and users of financial statements to evaluate the impact of IFRS 9 on the business and its financial statements. Topics Introduction IASB standards applicable to financial instruments: IAS 32, IAS 39, IFRS 7, IFRS 9 and IFRS 13 Introduction to IFRS 9 Definition of financial assets, financial liabilities and equity instruments IAS 32 Financial Instruments: Presentation financial liability versus equity instruments, compound financial instruments and offsetting Classification of financial assets and financial liabilities Re-cap of IAS 39 classification Solely Payments of Principal and Interest (SPPI) criteria Business model criteria Application of IFRS 9 classification model Amortised cost Printed from on 4 May 2018 Page 1 of 5

2 Fair value through profit or loss Fair value through other comprehensive income Fair value option Measurement of financial assets and financial liabilities Initial recognition including treatment of transaction costs Subsequent measurement (IFRS 9 and IFRS 13) Debt instruments Equity instruments Fair value movements due to changes in own credit risk and reporting it for financial liabilities designated at fair value through profit or loss Impact of reclassification of financial assets Overview of accounting for derivatives and embedded derivatives in IFRS 9 CVA and DVA for credit risk on derivatives Amortised cost financial assets Recognition and measurement under IFRS 9 Loan commitments Fee income and loan origination costs Financial guarantees Repossessed assets De-recognition principles De-recognition of financial assets Determining whether a transfer has occurred Transfer/retention of substantially all risks and rewards Determining whether an entity retains control and measurement of continuing involvement De-recognition of financial liabilities Impairment of financial assets Introduction to IFRS 9 expected loss model background, scope and impact of the model Application of IFRS 9 expected credit loss model 12-month and lifetime expected credit losses Determination of significant increases in credit risk Measurement of expected credit losses Modified financial assets Simplification and practical expedients Printed from on 4 May 2018 Page 2 of 5

3 Purchase/origination of credit-impaired financial assets Individual and collective assessment of impairment Key estimates and judgements Hedge accounting Overview of hedging, accounting for different types of hedges and comprehensive examples to hedge interest rate risk and foreign exchange risk Issues with IAS 39 hedge accounting IFRS 9 hedge accounting model Hedging instruments Hedged items Qualifying criteria Hedge documentation Hedge effectiveness requirements Rebalancing Discontinuation Discussion paper on macro hedging (dynamic risk management) IFRS 9 transition requirements for classification of financial assets and financial liabilities, expected credit loss impairment and hedge accounting IFRS 7 Financial Instruments: Disclosures IFRS 1 First-time Adoption of IFRSs - relief from full retrospective application Teaching method Group live instruction in a workshop format Powerpoint presentations with demonstrated examples Case studies and examples for participants to work through in the course Participant questions and group discussions on real life case studies All participants receive a comprehensive binder containing presentation slides for future reference Electronic copies of exercise and case study solutions will be available to participants Prerequisites Printed from on 4 May 2018 Page 3 of 5

4 Basic understanding of accounting under IFRS or national standards. No advance preparation is required for this course. Course benefits This course is beneficial to preparers and users of IFRS financial statements. The participants will learn the principles in IFRS 9, and its application. Classify and measure financial assets under the three categories in IFRS 9 Analyse the impact of IFRS 9 on the classification of financial assets, including embedded derivatives Classify and measure financial liabilities under the two categories in IFRS 9 Evaluate the principles of fair value measurement in IFRS 13 Apply the principles in relation to de-recognition of financial assets Calculate the impairment loss on loans and other financial assets under the expected credit loss model in IFRS 9 Analyse the estimates and judgements in the expected credit loss impairment model Apply the hedge accounting model in IFRS 9 and learn how it is aligned more closely to common risk management practices compared to IAS 39 Who should attend? Financial and management accountants in corporate and financial institutions Staff in treasury, operations, risk management, IT or compliance departments Internal auditors of entities reporting under IFRSs External auditors with clients facing the complexities and challenges in adopting and implementing IFRS 9 Staff and management of Central Banks, Deposit Insurance Entities, and other agencies with regulatory responsibility in the financial services sector Financial analysts seeking to improve their understanding of the accounting and disclosures related to financial instruments and the changes introduced by IFRS 9 Professors and other instructors with educational facilities First-time adopters of IFRSs, seeking to analyze the implications of applying IFRS 9 initially CPE / CPD Accreditation Printed from on 4 May 2018 Page 4 of 5

5 NASBA IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: Field of study: Accounting ICAEW Partner in Learning IASeminars is proud to have been named as an ICAEW Partner in Learning, working together to offer the ICAEW IFRS Certificate to our clients worldwide. ICAEW (The Institute of Chartered Accountants in England and Wales) is a world leading professional membership organisation that promotes, develops and supports over 145,000 chartered accountants worldwide. CPE certificates obtained from attending IASeminars courses are an ideal way for ICAEW members and others to demonstrate their continuing professional development, provided that the topic is relevant to their learning and development needs. Texas State Board of Public Accountancy IASeminars is registered with the Texas State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: This registration does not constitute an endorsement by the Board as to the quality of our CPE Program. In House To bring this course in-house please contact us and we will be pleased to assist Printed from on 4 May 2018 Page 5 of 5