International Financial Reporting Standards Updates (IFRS 9) Training (Online)

ABOUT

WHY SHOULD YOU ATTEND:

Under IAS 39 -Financial Instruments: Recognition, Measurement, and impairment allowances were measured according to an ‘incurred’ loss model wherein the recognition of credit loss allowances was triggered by loss events after origination. Losses ‘incurred but not reported’ were evaluated using diverse provisioning approaches. An entity only considers those impairments that arise as a result of incurred loss events. The effects of possible future loss events cannot be considered, even when they are expected.

IFRS 9 introduces a new expected credit loss (‘ECL’) model which broadens the information that an entity is required to consider when determining its expectations of impairment. Under this new model, expectations of future events must be taken into account, and this will result in the earlier recognition of larger impairments.

IFRS 9 replaces the existing incurred loss model with a forward-looking ECL model. Entities will now be required to consider historical, current, and forward-looking information (including macro-economic data). This will result in the earlier recognition of credit losses as it will no longer be appropriate for entities to wait for an incurred loss event to have occurred before credit losses are recognized.

IFRS 9 also expands the scope of the impairment requirements – for example, certain issued loan commitments and financial guarantees will now be within the scope of these new requirements. In addition, in contrast to the position under IAS 39, all instruments within the scope of the new impairment requirements will be subject to the same single ECL model. 

COURSE OUTCOMES

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

• Appreciate an overview of IFRS 9 classification and measurement impairment models 
• Learn the requirements of IFRS 9 Financial Instruments
• Get an insight into the classification and measurement of financial assets and financial liabilities under IFRS 9 
• Understand the new approach (the expected credit loss -ECL model) to impairment assessment of financial assets 
• Provide for appropriate adjustments and impairments for non-financial assets
• Make appropriate provisions for the late or non-payment of debt and revaluation of financial assets
• Understand the repercussions of other key issues including ongoing concerns and post-balance sheet events
• Summarize the key issues in IFRS 9, transition options, governance, and business considerations 
• Identify challenges to the implementation of IFRS 9 

TARGET GROUP 

IFRS and management reporting professionals, accountants, Collections Team Leaders & Supervisors, Accounts Receivable and Payables Accountants, Commercial Managers, Economists, Financiers and Senior and Middle Managers, and all those interested in having a better understanding of this standard.