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, cash management, internal audit
- Audit firms
- Supervisors and enforcers in the area of financial institutions accounting
Obsah školenia: IFRS 9 Financial instruments – Classification and measurement
- Definitions in the area of financial instruments
- Basic measurement method explained:
- Amortised cost and effective interest method including calculation and booking examples
- Fair value with alternatives of revaluation through profit or loss and other comprehensive income including booking examples
- Classification model for financial assets:
- Cash flow criterion (SPPI – solely payments of principal and interest)
- Special requirements for non-recourse assets and securitisation investments
- Business model criterion – consideration of the intention to hold or sell the asset
- Option to measure investments in equity instruments at fair value through OCI
- Classification model for financial liabilities
- Initial recognition and measurement of financial instruments
- Settlement and trade day accounting alternatives for purchases and sales of financial assets
- Derecognition of financial assets, repo transactions and security lendings
- Derecognition of financial liabilities
- Requirements for derivatives including embedded derivatives
- Disclosure requirements under IFRS 9 in the area of classification and measurement
- Practical implementation issues
The training is supported by numerous examples.
After completing the training the participants will understand:
- position and importance of financial instruments in the balance sheets of entities
- measurement methods - amortised cost, fair value through PL or through OCI – related bookings, impacts on the balance sheet and income statement
- principles based on which the financial assets and liabilities are classified and respective measurement methods are assigned to them
- requirements for derecognition of financial assets and liabilities and how to avoid unnecessary complexities when it comes to transfers of financial assets
- principles for accounting for derivatives under IFRS including embedded derivatives
- disclosure requirements for financial instruments
