Course 1741: IFRS Workshop for Banks and other Financial Institutions (3 days) Course introduction 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? Printed from http://www.iaseminars.com/ on 30 Mar 2019 Page 1 of 6
How are the disclosure requirements of IFRS 7 applied in practice? Topics Applying IASB standards applicable to financial institutions Financial Instruments Classification and reclassification of financial instruments under IFRS 9 Fair value option Fair value measurement (IFRS 13) Recognition and measurement under IFRS 9 Derecognition (including retained servicing and REPOs) Financial guarantees Loan commitments Application of the Effective Interest Method Computing the effective interest rate Applying the effective interest method under various scenarios live illustrations Plain vanilla bonds Variable rate instruments Effect of prepayments Applying the effective interest method after recognition of impairment losses Loans Receivable Recognition and measurement Fee income and loan origination costs (IFRS 15 and IFRS 9) Impairment and restructurings Interaction between IAS 21 (foreign currency issues) and IFRS 9 Repossessed assets Investment Property (IAS 40) brief overview Derivatives and Hedging (IFRS 9) Accounting for derivatives and embedded derivatives Overview of accounting for the three types of hedges (cash flow, fair value, and net investment) Hedge accounting documentation requirements Termination of hedge accounting Financial Statements Financial statement presentation (IAS 1, 7 and 8) Printed from http://www.iaseminars.com/ on 30 Mar 2019 Page 2 of 6
Review and practical application of IFRS 7 disclosure requirements Capital disclosures required by IAS 1 Review of real world and model IFRS financial statements Implications of IFRS 16 Leases (effective 2019) Transitioning to IFRS 9 IFRS 1 First-time Adoption of IFRSs - reliefs from retrospective application Current outstanding project Dynamic Risk Management (Macro Hedging) April 2014 Discussion Paper and current plan Teaching method Group live instruction and interactive participation Description and explanation of IFRS technical requirements in clear and simple language Real-world financial statements of financial institutions to demonstrate IFRS presentation and disclosure requirements Illustrative demonstrations for calculating effective interest rates Case studies: Recognition, measurement and fair value adjustments for financial instruments under IFRS 9 Application of the derecognition rules under IFRS 9 Determination of loan losses under IFRS 9 Exercises to provide hands-on application practice Active participation is encouraged Prerequisites Some familiarity with financial reporting for banks or other financial institutions under IFRS or US GAAP, or other national GAAPs. No advance preparation is required for this course. Course benefits Classify and measure financial assets under IFRS 9 s three categories Prepare the quantitative and qualitative disclosures for financial instruments required by IFRS 7 Calculate impairment of loans and other financial assets under the expected loss model in IFRS 9 Printed from http://www.iaseminars.com/ on 30 Mar 2019 Page 3 of 6
Calculate the effective interest rates for various financial instruments common to the financial sector Determine the principles in relation to recognition and measurement of investment property in IAS 40 Differentiate embedded derivatives between those that must be accounted separately and those that do not require separation from their host instruments under IFRS 9 Apply the hedge accounting requirements Transitioning smoothly to IFRS 9 Testimonials See what past participants said about this course: My overall perception of the training is excellent. IASeminars should keep up the good work. Presenter is obviously knowledgeable on the topic areas. Abiodun Olufemi Ogunoiki, Manager, KPMG, Nigeria The interaction and the group discussion were very informative. I will definitely be taking another course through IASeminars and recommending to colleagues. David Han, Scotiabank Canada Instructor's enthusiasm helped greatly with the learning process. Thanks! Kirk Harline, Vice President & Controller, Servus Credit Union Ltd., Canada IASeminars was more relevant and experienced in the area I was interested in. It was excellent. The instructor was experienced and open to discussions. He was very clear in his explanations and was Printed from http://www.iaseminars.com/ on 30 Mar 2019 Page 4 of 6
patient to allow learning to take place. The answers were relevant and to the point. Overall perfect forum for an update and for preparing for new standards (IFRS9) in particular. Omar Mboob, Asst. Head of Dept. Finance, Trust Bank Limited, Gambia This training is very useful in developing my knowledge and skills in IFRS. Baboucarr Jarjusey, Finance Officer, Ecobank, Gambia Who should attend? Financial or management accountants with financial institutions Internal and external auditors of financial institution reporting under IFRSs 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 impact of IFRS 9 s changes Professors and other instructors with educational facilities First-time adopters of IFRSs, seeking to analyze the options for, and implications of, applying IFRS 9 in their first IFRS financial statements CPE / CPD Accreditation 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: www.nasbaregistry.org. Field of study: Accounting Printed from http://www.iaseminars.com/ on 30 Mar 2019 Page 5 of 6
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: 009689. 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 http://www.iaseminars.com/ on 30 Mar 2019 Page 6 of 6