IFRS 9 Financial Instruments

2 days 10-11 May 2017, Dubai UAE £2,600.00 Download brochure Add to basket
2 days 17-18 Jul 2017, London UK £2,795.00 + VAT* Download brochure Add to basket
2 days 20-21 Nov 2017, London UK £2,795.00 + VAT* Download brochure Add to basket

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Overview

IFRS 9 is the new accounting standard for financial instruments that will have an impact on International banks and financial institutions worldwide. Numerous changes are in place, designed to make annual reports more meaningful to investors as well as simplify how auditors implement the rules and introduce safeguards to ensure that a severe credit crises cannot emerge again
 
IAS 39, which is to be replaced with IFRS 9 and other standards include accounting and reporting requirements that are bureaucratic and the source of many mistakes and misunderstandings by the accounting profession. They often inhibit the provision of consistent and meaningful information to investors on the true economic effects of firms’ hedging strategies.
 
Our aim on the two day course is to outline recent developments in hedge accounting and to show how the rules can be implemented in practice. We use Excel spreadsheets as well as local examples to illustrate how the accounting policies are implemented across Europe, Asia and Africa.
 
This 2 day course specifically focuses on the new rules and reporting standards contained in IFRS 9 which is designed for professionals who have experience of operating under IAS 39 and wish to gain in-depth understanding of what’s new in IFRS 9 and the implications for the design, management and reporting of hedging strategies.
 
 
Learning Outcomes
During the course the delegates will:
1. Examine the role of impairment and hedge accounting  and identify anomalies and restrictions contained in IAS 39
2. Understand how IFRS 9 is developed and implemented in practice
3. Identify practical implementation issues together with solutions
4. See how the standard can be implemented in practice in a simplified and effective manner. 
 
 
 
Methodology

This practical course will contain Excel spreadsheets, and hands on exercises. Group case studies selected from the South Africa region will also be included.
 

Who should attend

The course is designed for professional accountants working in banks or financial institutions. Traders, product controllers and risk managers will also benefit. Ideally, delegates should have practical experience of working with IAS 39 in the design, implementation, processing and accounting & reporting of hedges. Delegates will
include finance, accounting, treasury, operations, risk management, audit, IT or compliance. The course may also benefit independent accountants, consultants and lawyers who advise firms on the design of hedging strategies and related accounting.

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Cormac Butler
The course director is currently an active equity and options trader and a former consultant with Lombard Risk Systems London and has also worked with Peat Marwick and PricewaterhouseCoopers. He has considerable international experience as a training consultant in derivative accounting, Corporate Finance and Derivative Mathematics, working with major banks including Banque BNP Paribas.

He has conducted courses for Morgan Stanley, PriceWaterhouseCoopers (Holland), Investec (South Africa) and ABB Switzerland and Asian Development Bank. In addition, he has worked for IIR and Euromoney in Singapore, Hong Kong, Thailand, America and Saudi Arabia.

The course director graduated from the University of Limerick, Ireland with a degree in Finance. He has recently published a book which is currently on the best sellers list (for Risk Management books) with Amazon.com, Gloriamundi.org and Financial World Bookshop (London).

 

Dubai
Cormac Butler
The course director is currently an active equity and options trader and a former consultant with Lombard Risk Systems London and has also worked with Peat Marwick and PricewaterhouseCoopers. He has considerable international experience as a training consultant in derivative accounting, Corporate Finance and Derivative Mathematics, working with major banks including Banque BNP Paribas.

He has conducted courses for Morgan Stanley, PriceWaterhouseCoopers (Holland), Investec (South Africa) and ABB Switzerland and Asian Development Bank. In addition, he has worked for IIR and Euromoney in Singapore, Hong Kong, Thailand, America and Saudi Arabia.

The course director graduated from the University of Limerick, Ireland with a degree in Finance. He has recently published a book which is currently on the best sellers list (for Risk Management books) with Amazon.com, Gloriamundi.org and Financial World Bookshop (London).

 

Venue

Dubai

Dubai Hotel

This programme takes place on a non-residential basis at a central Dubai hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Dubai has an incredible number of hotels. Courses held here are mainly held at the J.W. Marriot hotel, Sheraton Dubai Creek and Le Meridien all in central Dubai.
 
J.W. Marriott Hotel – Abu Baker Al Siddique Road, PO Box 16590, Dubai, U.A.E
Phone +971 4 607 7811; Fax +971 4 607 7011
www.marriott.com
 
At the JW Marriott Dubai you will enjoy luxury on your terms; impeccable service and elegant surroundings allow you to relax and focus on your own agenda. With 344 luxuriously appointed rooms and suites the J.W. Marriott provides an oasis of calm in a busy city while the award-winning restaurants have the recipe for satisfying a taste for international flavour.        
 
Sheraton Dubai Creek – Baniyas Street, PO Box 4250, Dubai, U.A.E
Phone +971 4 228 1111; Fax +971 4 221 3468
www.starwoodhotels.com
 
After undergoing a complete renovation, the Sheraton Dubai Creek Hotel& Towers reopened October 10th, 2002 with a fully refurbished interior and exterior. The 255 room hotel now offers more creek-view rooms, redesigned atrium lobby, outstanding food and beverage facilities, upgraded rooms with state-of-the-art data connectivity, and Dubai's newest conference facilities. 

Le Meridien – PO Box 10001, Airport Road, Dubai, U.A.E
Phone +971 4 282 4040; Fax +971 4 282 5540
www.lemeridien-dubai.com
 
Le Meridien Dubai is a five star deluxe hotel built on two floors and surrounded by 38 acres of landscaped gardens. The hotel is elegantly furnished with a french accent that incorporates the individual character and flair of the local culture. The hotel is minutes away from the commercial districts and shopping centres and a short distance from Dubai International Airport. Facilities include a choice of 15 restaurants and bars, 24-hour room and laundry service, two fully equipped business centres and a state-of-the-art Spa and fitness club.

 
 

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

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Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

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Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Agendas are localised, please select your preferred location.

Day 1


Objectives of IFRS 9

  • Requirements for recognising financial assets and financial liabilities
  • Principles based v Rules based accounting
  • Reducing complexity in reporting financial instruments
  • Lessons from the Financial crisis

IFRS 13 Fair Value Measurement

  • Impact of the revised definition of fair value
  • Level one two and three assets
  • Recurring and non recurring assets
  • Disclosure requirements
  • Observable and non-observable inputs

Replacement of IAS 39

  • Classification and measurement of financial assets and financial liabilities
  • Impairment methodology
  • Hedge accounting
  • Impact of change on accounting Framework

Impairment Methodology

  • Objective Evidence and elimination of threshold for impairment
  • Expected credit losses
  • One year v Life time expected losses
  • Practical application guidance

Hedge Accounting

  • Aligning hedge accounting with risk management Accounting for open portfolios and macro  hedging Fair value hedge of an interest rate portfolio
  • Accounting policy choice ­ applying existing hedge requirements of IAS 39 or new requirements of IFRS 9

Recognition and Derecognition of financial assets

  • Risks and rewards of ownership
  • Beneficial interest
  • Control over an asset and accounting implications
  • Off balance sheet accounting

Case Study Protium Special Purpose Vehicle

Impact between IFRS 13 and IFRS 9

  • Level one assets
  • Level two assets
  • Level three assets
  • Operational risk and conflict of interest

Application of IFRS 9

  • Subsidiaries and accounting treatment under IFRS 10,11 and 12
  • Lease accounting IAS 17
  • Derivatives embedded in leases
  • Pension accounting IAS 19

Day 2


Review of Accounting Standards

  • Hedge Accounting
  • Mark­to­market V Cost
  • Credit Value Adjustment
  • Hedging Rules

Case Study First Rand Group Accounting Policies

IFRS 9 – Classification of Financial Assets

  • Business Model and Cash Flow characteristics
  • Reclassification of assets
  • Applying the Fair Value Option to banks
  • Subsequent measurement

Accounting for Derivatives and Embedded Derivatives

  • Role of embedded accounting rules
  • Changes under IFRS 9
  • Practical implementation issues for South African banks

Case Study Accounting for Structured Products under IFRS 9

Hedge Accounting – the new rules

  • Three types of hedge, cash flow, fair value and hedge of a net investment
  • Other Comprehensive Income
  • Problems with hedge accounting
  • Time value and Intrinsic Value of Options

IFRS 9 Hedge Accounting – New Qualifying Criteria

  • Qualifying hedges under IFRS 9
  • Equity Investments and Comprehensive Income
  • Available for Sale, Held to Maturity changes

IFRS 9 Hedge Accounting – Effectiveness Assessment

  • Quantitative and Qualitative controls
  • Testing for hedge effectiveness under the new rules
  • Documentation
  • Procedure for audit

Case Study  ­ Hedging and Documentation for Foreign Exchange Transaction

Course summary and close

Day 1


Objectives of IFRS 9

  • Requirements for recognising financial assets and financial liabilities
  • Principles based v Rules based accounting
  • Reducing complexity in reporting financial instruments
  • Lessons from the Financial crisis

IFRS 13 Fair Value Measurement

  • Impact of the revised definition of fair value
  • Level one two and three assets
  • Recurring and non recurring assets
  • Disclosure requirements
  • Observable and non-observable inputs

Replacement of IAS 39

  • Classification and measurement of financial assets and financial liabilities
  • Impairment methodology
  • Hedge accounting
  • Impact of change on accounting Framework

Impairment Methodology

  • Objective Evidence and elimination of threshold for impairment
  • Expected credit losses
  • One year v Life time expected losses
  • Practical application guidance

Hedge Accounting

  • Aligning hedge accounting with risk management Accounting for open portfolios and macro  hedging Fair value hedge of an interest rate portfolio
  • Accounting policy choice ­ applying existing hedge requirements of IAS 39 or new requirements of IFRS 9

Recognition and Derecognition of financial assets

  • Risks and rewards of ownership
  • Beneficial interest
  • Control over an asset and accounting implications
  • Off balance sheet accounting

Case Study Protium Special Purpose Vehicle

Impact between IFRS 13 and IFRS 9

  • Level one assets
  • Level two assets
  • Level three assets
  • Operational risk and conflict of interest

Application of IFRS 9

  • Subsidiaries and accounting treatment under IFRS 10,11 and 12
  • Lease accounting IAS 17
  • Derivatives embedded in leases
  • Pension accounting IAS 19

Day 2


Review of Accounting Standards

  • Hedge Accounting
  • Mark­to­market V Cost
  • Credit Value Adjustment
  • Hedging Rules

Case Study First Rand Group Accounting Policies

IFRS 9 – Classification of Financial Assets

  • Business Model and Cash Flow characteristics
  • Reclassification of assets
  • Applying the Fair Value Option to banks
  • Subsequent measurement

Accounting for Derivatives and Embedded Derivatives

  • Role of embedded accounting rules
  • Changes under IFRS 9
  • Practical implementation issues for South African banks

Case Study Accounting for Structured Products under IFRS 9

Hedge Accounting – the new rules

  • Three types of hedge, cash flow, fair value and hedge of a net investment
  • Other Comprehensive Income
  • Problems with hedge accounting
  • Time value and Intrinsic Value of Options

IFRS 9 Hedge Accounting – New Qualifying Criteria

  • Qualifying hedges under IFRS 9
  • Equity Investments and Comprehensive Income
  • Available for Sale, Held to Maturity changes

IFRS 9 Hedge Accounting – Effectiveness Assessment

  • Quantitative and Qualitative controls
  • Testing for hedge effectiveness under the new rules
  • Documentation
  • Procedure for audit

Case Study  ­ Hedging and Documentation for Foreign Exchange Transaction

Course summary and close

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