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 companies
- Appraisers preparing valuations for accounting purposes
- Supervisors and enforcers in the area of financial institutions accounting
Obsah školenia: IFRS 13 – Fair value measurement
- Overview of standards requiring measurement of assets and liabilities at fair value
- Definition of fair value
- Fair value as exit price including application of the bid-ask spreads
- Other aspects of the fair value definition – orderly transaction, market participants, principal / most advantageous market
- Fair value at initial recognition + booking of day one gains or losses - Specific requirements for measurements of liabilities and equity instruments issued
- Offsetting positions in credit and market risks
- Requirements applied to valuation techniques and inputs
- Types of valuation techniques – market, income, cost approach
- Present value techniques
- Fair value in inactive markets
- Principles of fair value hierarchy – categorisation of the measurements into Level 1, 2 and 3
- Using 3rd party quotes
- Specific principles for measurement of non-financial assets – highest and best use + examples
- Specific requirements for measurement of non-financial liabilities
- Disclosures about fair values
- General requirements for disclosures
- Disclosures for financial instruments – detailed description, practical examples, summary in the tables distinguishing requirements for interim and annual reports
- Disclosures for non-financial assets and liabilities – description + summary in the table
After completing the training the participants will understand
- in what cases fair value measurements are used
- principles of fair value measurement based on the fair value being an exit price determined from market participants’ perspective
- valuation models which can be used for fair value measurement in particular situations
- jow fair value measurement should be approached if markets are inactive
- how 3rd party price quotes can be used
- how fair value measurements are categorised into 3-level hierarchy
- disclosures in the area of hedge accounting based on practical examples
