Accounting for Financial Instruments under IFRS 9

• Anyone interested in developments in IFRS accounting standards for banks and current projects.
• Statutory Auditors and their staff.

Good knowledge of IFRS

• Understanding the challenges of IFRS 9.
• Learn specific vocabulary.
• Mastering IFRS 9 accounting principles.
• It should be noted that most credit institutions continue to apply IAS 39 for hedge accounting. The IFRS 9 rules on hedge accounting will therefore be discussed only briefly.

Part 1. Introduction

• Explain the regulatory environment.
• Accounting issues:
  • Amortised cost.
  • Fair value.
  • Depreciation

Part 2. IFRS 9: Classification and measurement of Financial Instruments The new asset categories defined by IFRS 9:

• The portfolio at amortised cost:
  • Business model test.
  • Basic or non-basic instrument (SPPI test on the characteristics of the financial instrument).
• The portfolio at fair value through profit or loss.
• The portfolio at fair value through recyclable OCI.
• The portfolio at fair value per OCI is not recyclable.
• Upgrades:
  • Summary of the transition from the old categories to the new ones.
• The various portfolios on the liabilities side:
  • Liabilities measured at amortised cost.
  • Trading activities.
  • The various “fair value options”.
  • Own credit risk.
• The format of banks' financial statements under IFRS 9 (ANC 2017-02).

Part 3. IFRS 9: Impairment of Financial Assets

• The weaknesses of the current system.
• The expected loss model vs. the actual loss model.
• The concepts of expected losses (EL) 12 months and at maturity.
• The three credit risk assessment portfolios.
• The specific case of impairment of the portfolio at fair value by recyclable OCI.

Part 4. IFRS 9: Hedge Accounting

• Designation of hedging instruments.
• Definition of items covered.
• The new conditions for qualifying hedging transactions:
  • Economic link.
  • Virtually no credit risk.
  • Coverage ratio.
• Discussion paper on macro-hedging.

Part 5. Other Topical Issues

• An update on accounting news based on new texts and projects.