The training is focused on a comprehensive explanation of the IFRS 9 model for impairment of financial instruments which is based on expected credit losses. It describes requirements for assessment of significant credit risk deterioration as a distinguishing factor for booking the impairment based on 12-month or lifetime expected credit losses. Much space is dedicated to models for measuring the expected credit losses. Also special areas of impairment such as POCI, modifications of financial assets and disclosure requirements are explained
Ciljna skupina
At banks and other financial institutions mainly employees at following departments: accounting, reporting, risk management, treasury, ALM, controlling, internal audit, financial analyses of IFRS statements of customers
At non-financial companies mainly employees at following departments: accounting, reporting, risk management, controlling, internal audit
Audit firms
Supervisors and enforcers in the area of financial institutions accounting
Datum
Mjesto
Cijena
17.5. – 18.5.2021
Ispričavamo se, ali nije moguće naručiti seminar u ovom terminu
General overview of the requirements – depiction of 3 stages
Criterion of significant increase in credit risk + detailed description of assessment principles, individual vs collective assessment and practical expedients
Requirements for measurement of 12-month and lifetime expected losses + explanation of models commonly used in practice
Application to off-balance sheet exposures – loan commitments and financial guarantees
Specific requirements for revolving credit facilities
Forward looking adjustments of expected credit losses
Credit impaired financial assets - Stage 3
Modifications of cash flows (restructurings)
Application to financial assets measured at fair value through OCI
Accounting for reclassifications and related changes in impairment
Exceptions from the general model – recognition of lifetime expected losses from inception for specific types of assets,
Special requirements for purchased or originated credit impaired (POCI) assets and interactions with derecognition requirements
Requirements for presentation in the financial statements
Detailed requirements for disclosures of expected credit losses including disclosure examples
Outcomes of discussions by ITG (Impairment Transition Resource Group) organised by the IASB
Practical application issues – calculation of PDs, LGDs, EADs, discount factors, adjustments of values used for regulatory purposes, derivation of long-term PDs based on short-term period observations + calculation examples
Discussion of implementation issues
After completing the training the participants will understand
assessment of significant increases of credit risk which distinguishes whether the impairment is measured based on 12-month or lifetime expected credit losses
measurement of the expected credit losses including models commonly used in practice
special areas of impairment requirements such as POCI, modification of financial assets including leeway to affect the extent of POCI in the balance sheet –
specific rules applicable to revolving facilities
disclosures of credit risk for financial instruments based on practical examples