Financial Reporting Standards: IFRS For Banks & Financial Institutions

The move to IFRS has had a major impact on the reporting requirements of financial institutions. Moreover, additional changes are on the horizon, as the IASB accelerates its efforts to replace the accounting requirements for financial instruments which will also affect the related disclosures. This course provides a comprehensive overview of the effects that the current and impending standards have on the financial statements of financial institutions. In addition, likely changes to IFRS based on the IASB's technical agenda are reviewed.

This four-day program offers invaluable guidance in meeting current and likely future international accounting rules and disclosure requirements. Coverage includes lending and repossessed assets, accounting implications of regulatory requirements, disclosures, and IFRS 13 Fair Value Measurement (May 2011, effective January 2013). The complex requirements of IAS 39 Financial Instruments: Recognition and Measurement are discussed and explained, as well as the new classification and measurement requirements of IFRS 9 Financial Instruments (October 2010, effective January 2015) for financial assets and financial liabilities.

The course uses numerous examples and illustrations including application of the effective interest method under various scenarios, retained servicing, loan commitments and financial guarantees, loan impairment and restructurings, and derivatives and hedging. Where applicable, the aforementioned IFRS accounting rules are contrasted with your local GAAP

Course Objectives

At the end of the course, participants will be able to:

  • Classify and measure financial assets according to the four categories defined in IAS 39
  • Classify and measure financial assets according to the two general categories defined in IFRS 9
  • Prepare the quantitative and qualitative disclosures for financial instruments required by IFRS 7
  • Calculate impairment of loans and other financial assets
  • Calculate the effective interest rates for various financial instruments common to the banking industry
  • Differentiate embedded derivatives between those that must be accounted separately and those that do not require separation from their host instruments under IAS 39
  • Apply the stringent requirements for hedge accounting
  • Plan for changes in accounting and disclosure requirements by identifying likely future IFRS changes affecting financial institutions

Who Should Attend

This course is ideal for individuals at all levels within an organization who need to have detailed knowledge of IFRSs. In essence, it is an opportunity to transfer a crucial new skill set to those responsible for making accounting decisions and preparing, reviewing or approving IFRS financial statements.

Please note some familiarity with financial reporting for banks or other financial institutions under IFRS or local GAAP. No other advance preparation is required for this course.

Course Outline

  • Applying Current IASB Standards applicable to Financial Institutions
  • Financial Instruments - Classification and reclassification of financial instruments under IAS 39 and IFRS 9
  • Fair value option
  • Fair value measurement (IFRS 13) - Recognition and measurement under IAS 39 and IFRS 9
  • Derecognition (including retained servicing and REPOs)
  • Financial guarantees
  • Loan commitments
  • Loans Receivable - Recognition and measurement under IAS 39 and IFRS 9
  • Fee income and loan origination costs (IAS 18 and IAS 39)
  • Impairment and restructurings
  • Interaction between IAS 21 (foreign currency issues) and IAS 39
  • Repossessed assets
  • Application of the Effective Interest Method (IAS 39)
  • Computing the effective interest rate
  • Applying the effective interest method under various scenarios – live illustrations
  • Plain vanilla bonds
  • Variable rate instruments
  • Effect of prepayments
  • Investment Property (IAS 40)
  • Applying the effective interest method after recognition of impairment losses
  • Derivatives and Hedging (IAS 39) - Accounting for derivatives and embedded derivatives
  • Overview of accounting for the three types of hedges (cash flow, fair value, and net investment)
  • Hedge accounting documentation requirements, termination of hedge accounting
  • Financial Statements - Financial statement presentation (IAS 1, 7 and 8) (including the 2011 amendments to IAS 1)
  • Review and practical application of IFRS 7 disclosure requirements
  • Capital disclosures required by IAS 1
  • Replacement of IAS 39
  • Current IASB projects on financial instruments
  • Impairments
  • General and macro hedge accounting
  • Adjusting the already issued requirements of IFRS 9 to some extent

Location                          Pricing (Ex. VAT)                        Dates

Nigeria                              N305,000                                  26st - 30th September 2016