Introduction

This workshop provides a detailed review of the significant technical requirements of International Financial Reporting Standards (IFRSs), including accounting and reporting for financial instruments, as well as other standards relevant to the financial services sector. It includes coverage of the requirements of the relevant standards and interpretations, hands-on case studies, examples, exercises, small-group projects, and benefits from the interactive participation of the attendees. Our specialist instructors explain the principles clearly and simply and provide real-world examples, thereby immersing participants in the intricacies of IFRSs and the implications for banks and other financial institutions.

Utilizing a highly interactive format, this course provides a comprehensive overview of the effects that IFRS 9 Financial Instruments has on the financial statements of financial institutions.

The principles of the standards are demonstrated with numerous illustrative examples, complemented by application of the standards in an interactive group environment utilizing case studies, model and real-world financial statements and practical exercises.

The registration fee for this unique event includes:

• 5 days of formal tuition by some of our most senior instructors
• Full set of course materials (including case studies, illustrations and examples)
• Lunch and refreshments on every teaching day

Learning Objectives

• Prepare and analyse IFRS financial statements, including statement of financial position, statement of profit or loss and other comprehensive income, statement of cash flows, statement of changes in equity and the notes to the financial statements
• Comply with the extensive IFRS disclosure requirements, including accounting policies and changes in accounting policies, earnings per share, related parties, operating segments, and the qualitative and quantitative disclosures for financial instruments
• Apply IFRS requirements for recognition and measurement of assets, liabilities, revenues, expenses, gains and losses
• Classify and measure financial assets under IFRS 9’s three categories
• Calculate the effective interest rates for various financial instruments common to the banking industry and apply the effective interest method for recognition of interest income and expense
• Differentiate embedded derivatives between those that must be accounted separately and those that do not require separation from their host instruments under IFRS 9
• Calculate impairment of loans and other financial assets in accordance with IFRS 9, as well as impairment of non-financial assets using the ‘cash-generating units’ approach in accordance with IAS 36
• Apply IFRS requirements for hedge accounting, repossessed assets, loan commitments, loan fees, and financial guarantees
• Analyse the five-step framework for recognition of revenue in IFRS 15 Revenue from Contracts with Customers, and apply the principles to recognition of income in the banking industry
• Apply the principles in IFRS 16’s lease accounting model and analyse its impact on the financial statements

Who Should Attend

• Financial accountants and management accountants in the financial services sector seeking in-depth knowledge of all accounting standards and interpretations most relevant to the industry
• Accounting staff and management of banks and other financial institutions that are adopting IFRSs for the first time, or have already adopted IFRSs, and want to reinforce their understanding of the accounting and reporting requirements
• Internal and external auditors of entities in the financial services sector 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 by banks and other financial institutions

Topics

• Introduction to IFRSs
  • IFRSs and the IASB structure
  • Overview and organization of the standards
  • IFRS Conceptual Framework
  • Overview of primary IFRS financial statements
  • Concept of ‘other comprehensive income’
  • Time value of money
  • IFRS 13 Fair Value Measurement
• Non-Financial Assets
  • IAS 16 Property, Plant and Equipment
  • IAS 23 Borrowing Costs
  • IAS 38 Intangible Assets
  • IAS 40 Investment Property
  • IAS 36 Impairment of Assets
• Liabilities
  • IAS 37 Provisions, Contingent Liabilities, and Contingent Assets
  • IAS 19 Employee Benefits
  • IFRS 16 Leases (effective from 2019)
• Financial Statements
  • IAS 1 Presentation of Financial Statements
  • IAS 7 Statement of Cash Flows
  • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
  • IAS 10 Events after the Reporting Period
  • IAS 33 Earnings per Share
  • IAS 34 Interim Financial Reporting
  • IFRS 8 Operating Segments
• IFRS 15 Revenue from Contracts with Customers
• Financial Instruments
  • Overview of IFRS 9 Financial Instruments
    • Classification and reclassification of financial instruments
    • Solely Payments of Principal (SPPI) and business model criteria
    • The ‘fair value option’
    • Initial and subsequent measurement
    • Derivatives and embedded derivatives
    • Calculation of effective interest rates and application of the effective interest method under various scenarios
    • Repossessed assets
    • Loan fees and origination costs
    • Financial guarantees and loan commitments
    • Derecognition of financial instruments
    • Application of the expected credit loss model
    • Hedge accounting model
    • Update on the Discussion Paper regarding dynamic risk management (macro hedging) and IASB’s current plan
  • IAS 32 Financial Instruments: Presentation
    • Distinguishing between financial liabilities and equity transactions
    • Offsetting financial assets and financial liabilities
  • IFRS 7 Financial Instruments: Disclosures
  • IFRS 1 First-time Adoption of IFRSs - reliefs from retrospective application
  • IAS 21 The Effects of Changes in Foreign Exchange Rates

Teaching Method

• Live group instruction
• Class discussions lead by IFRS experts with extensive experience with financial institutions
• Description and explanation of IFRS technical requirements in clear and simple language, with an emphasis on accounting for financial instruments and other standards most relevant to financial institutions
• PowerPoint presentations, supplemented with examples, calculations, and interactive discussions
• Short exercises or cases for each significant standard to provide hands-on application practice
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials