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IFRS 9 - International Financial Reporting Standards 9 & Expected Credit Loss

JHB | 19-23 June 2023

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Course Overview
This course provides an in-depth analysis, application methodology and strategy for
implementing IFRS 9 on financial instruments, including hedge accounting and the
treatment for expected credit loss. Delegates will focus on implementation issues
and challenges and discuss case studies on practical application of the standard.
You will have an understanding on “what was” and “what will be” in the world of
accounting for financial instruments. IASB has published the new standard on
financial instruments – IFRS 9. This standard replaces IAS 39. Amendments have
been made in the classification and measurement of financial assets and a new
model for impairment has been introduced. Hedge accounting is also challenging to
implement. This course will help to clarify these issues and help you to get ready to
plan your strategy for the transition to the modified standard.

Course Benefits
– Learn how to implement the financial reporting standards on financial
instruments – IFRS 9
– Understand the classification and measurement methodology for financial
assets and financial liabilities
– Comprehend the expected credit loss model and how to implement it in your
– Grasp the concept of hedge accounting
– Identify the changes and their impact on financial statements
– Develop a plan to move to the updated standard

This programme runs for 5 days

Price: 24 699.00

*Group Discounts Available on Request.

Classification of Financial Instruments
– IAS 39 categories vs. IFRS 9 categories
– New model – Overview – The three areas of focus
– Amortised cost – Basics and computational aspects

Discussion – Financial lease and amortised cost

Financial Assets
– Business model – To collect contractual cash flows
– The SPPI criterion
– Designating an instrument at fair value
– Derivatives and embedded derivative
– Impact on banking and other financial institutions
– Examples And Group Discussion
Financial Liabilities
– Categories for financial liabilities
– Debt vs. equity
– Hybrid instruments
– Accounting of own credit risk
– Accounting for credit risk
– Comparative accounting policies adopted by banks
– The key differences between IFRS 9 and IAS 39
Understanding Derivative Instruments
– Understanding derivatives
– Accounting for derivatives
– Foreign exchange forwards
– Interest rate forward
– Cross country swaps
– Standard options
– Exotic options
Hedge Accounting, Qualifying Criteria and Documentation
– Hedging instruments under IFRS 9
– Types of hedges
– Qualifying hedge items
– Hedge effectiveness assessment
– Hedge relationship documentation
– Rebalancing
– Discontinuing hedge accounting
Options And Hedge Accounting
– Intrinsic and time value
– Accounting treatment for time value of options
– Forwards and hedge accounting

Fair Valuation – Credit and Debit Valuation Adjustment

– Fair valuation under IFRS 13
– Fair value hierarchy
– Profit and loss
Case Study: Credit valuation adjustment of interest rate swap
Hedging Foreign Exchange Risk
– Types of Foreign Exchange (FX) exposures
– Understanding impact of IAS 21
– Commonly used FX derivatives
Case Study – Various hedging strategies and accounting entries
Hedging Foreign Subsidiary
– Stand alone and consolidated financial statements
– Translation process
– Special items that are part of net investment
Hedging Interest Rate Risk
– Common interest rate hedging strategies
– Separating embedded derivatives
– Interest accruals
– Common interest rate derivative instruments
Expected Credit Loss – A Deep Dive into Impairment
– Impairment Of Financial Assets
– Impairment of financial assets (IFRS 9)
o Existing incurred loss model
o The three-stage impairment model
o Incurred loss model vs. expected loss model
o Credit losses
o Loss allowance
o Lifetime expected credit losses
o Low credit risk exceptions
o Significant Increase – Assessing when an entity shall recognise lifetime
o expected credit losses
o Objective evidence of impairment
o Loan commitments and financial guarantee contracts
o Exception to the general model

Implementing IFRS 9 – Impairment of Financial Assets: Expected Credit Loss
– Amortised cost of a financial asset or financial liability
– 12-month expected credit losses
– Credit adjusted effective interest rates/effective profit rate
– Effect of changes in credit risk
– Estimate of expected credit losses
– Modification of gain and loss
Case Study – IFRS 9: Changes to income statement and balance sheet

  • This well-researched course will benefit executives who are responsible for the
    and accounting functions in their organisation. Finance Directors, Head of Finance,
    Chief Finance Officers, Accounts Managers, Accountants, Auditors, and Analysts will
    find the course particularly useful. Organisations consider this course as a great
    opportunity to train their young officers in the complexities of accounting in the

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