About the Course

IFRS 9 is an accounting standard issued by the International Accounting Standards Board (IASB) that addresses the classification and measurement of financial instruments, impairment of financial assets, and hedge accounting. The standard specifies how entities should recognize, measure, and report financial assets and financial liabilities in their financial statements.

This International Financial Reporting Standards (IFRS 9) course is designed to equip participants with the knowledge and practical skills required to understand IFRS 9 and effectively adopt international best practices in financial reporting.

Target Participants

This course is recommended for:

• Finance Managers
• Accountants
• Auditors
• Operations Managers
• Risk Management Managers
• Information Technology Professionals
• Other professionals working in financial and accounting institutions seeking to strengthen their knowledge of IFRS 9

Course Duration

One week

What You Will Learn

By the end of this course, participants will be able to:

• Analyse financial instruments to distinguish between liabilities, equity, or compound instruments
• Apply IFRS 9 principles for classification, initial recognition, and subsequent measurement of financial assets and liabilities
• Evaluate fair value measurement principles under IFRS 13
• Determine the accounting treatment for derivatives and embedded derivatives
• Compute the effective interest rate and apply the effective interest method
• Apply derecognition principles to financial assets and financial liabilities
• Apply the expected credit loss (ECL) model and calculate impairment losses
• Understand hedge accounting requirements under IFRS 9
• Comply with the disclosure requirements of IFRS 7
• Analyse the impact of COVID-19 on the application of IFRS 9

Course Outline

Introduction

• Overview of IFRS 9
• Recap of IAS 32 – Financial Instruments
• Financial liabilities versus equity instruments
• Compound financial instruments and offsetting

Classification of Financial Instruments

• Classification of financial assets and financial liabilities
• Measurement categories:
  • Amortised Cost
  • Fair Value Through Other Comprehensive Income (FVOCI)
  • Fair Value Through Profit or Loss (FVTPL)
• Business model assessment
• Solely Payments of Principal and Interest (SPPI) test
• Fair value option

Measurement of Financial Instruments

• Initial recognition and transaction costs
• Subsequent measurement
• Amortised cost measurement
• Fair value measurement (IFRS 13)
• Reclassification of financial assets
• Own credit risk for financial liabilities measured at FVTPL

Derivatives and Embedded Derivatives

• Accounting for derivatives
• Embedded derivatives and separation criteria

Amortised Cost Financial Assets

• Effective interest rate computation
• Application of the effective interest method
• Plain vanilla bonds
• Variable rate instruments
• Prepayable financial assets
• Loan commitments
• Fee income and loan origination costs
• Financial guarantees
• Repossessed assets

Derecognition Principles

• Derecognition of financial assets
• Assessment of transfers of financial assets
• Transfer or retention of risks and rewards
• Control assessment and continuing involvement
• Derecognition of financial liabilities

Impairment of Financial Assets

• Overview of the expected credit loss (ECL) model
• Scope and impact
• 12-month and lifetime expected credit losses
• Staging of financial assets
• Significant increase in credit risk
• Measurement of expected credit losses
• Modified financial assets
• Simplifications and practical expedients
• Purchased or originated credit-impaired financial assets
• Loan commitments and financial guarantee contracts

Hedge Accounting

• Overview of hedge accounting
• Fair value hedges
• Cash flow hedges
• Net investment hedges
• Hedge accounting for interest rate and foreign exchange risks
• Hedge accounting model under IFRS 9
• Hedged items and hedging instruments
• Qualifying criteria
• Groups and net positions
• Hedge documentation
• Hedge effectiveness requirements
• Rebalancing and discontinuation

Disclosures and Updates

• IFRS 7 financial instruments disclosures
• Impact of COVID-19 on IFRS 9
• Interest rate benchmark reform
• Macro-hedging developments

Training Approach

• Hands-on practical exercises
• Presentations and demonstrations
• Group work and discussions
• Case studies based on real-world datasets

Certification

Upon successful completion of the course, participants will be awarded a Certificate of Completion.