Target audience
- At banks and other financial institutions mainly employees at following departments: accounting, reporting, risk management, treasury, ALM, back office, middle office, controlling, internal audit, financial analyses of IFRS statements of customers
- At non-financial companies mainly employees at following departments: accounting, reporting, risk management, controlling, internal audit
- Audit firms
- Supervisors and enforcers in the area of financial institutions accounting
Obsah školenia: IAS 32 – Presentation of financial instruments
- Definitions of a financial instrument, financial asset, financial liability, equity instrument
- Explanation of the main principle – contractual obligation to deliver cash
- Special areas of the assessment – contingent settlement provisions, economic incentives, indirect obligations
- Decision tree for assessment of non-convertible instruments
- Decision tree for classification of instruments convertible into equity instruments of the issuer – conversion into fixed/variable amount
- Accounting for equity instruments from the perspective of the issuer
- Accounting for compound instruments from the perspective of the issuer
- Derivatives settled with own equity instruments (own shares) of the entity – decision tree, assessment of fixed amount vs fixed number, redemption obligation, examples
- Presentation requirements explained based on instruments commonly issued by banks – CET1, AT 1, Tier 2 and subordinated debts, senior non-preferred debt
After completing the training the participants will understand
- definitions in the are of financial instruments including split into debt instrument, equity instruments and derivatives
- principles for the distinction between financial liabilities (i.e. debt instruments) and equity instruments both from the issuer’s and holder’s perspective
- specific requirements for compound instruments containing both equity and liability components
- requirements for derivatives settled with own shares of the entity
- application of the presentation principles to the main types of instruments issued by banks
