This 5-day intensive course provides a comprehensive understanding of IFRS 9 Financial Instruments, focusing on its requirements for classification, measurement, impairment, and hedge accounting. Participants will explore the impact of IFRS 9 on financial reporting and gain practical skills in applying its standards. The course combines theoretical insights with practical exercises and case studies to help professionals implement IFRS 9 effectively in their organisations.
Target Audience
• Financial accountants and reporting professionals
• CFOs and finance managers
• Financial analysts and auditors
• Compliance officers and risk managers
Course Objectives
• To understand the key principles and requirements of IFRS 9 Financial Instruments
• To develop skills in classifying and measuring financial instruments according to IFRS 9
• To apply impairment and expected credit loss models in financial reporting
• To implement hedge accounting and understand its impact on financial statements
• To address practical challenges and best practices in applying IFRS 9
Day-by-Day Course Outline
Day 1: Introduction to IFRS 9
• Overview of IFRS 9: Background, objectives, and scope
• Key components: Classification and measurement of financial instruments
• Comparison with IAS 39: Key differences and improvements
• Case study: Applying classification and measurement criteria to various financial instruments
Learning Outcome:
Participants will gain a foundational understanding of IFRS 9 and its key components, including classification and measurement requirements.
Classification and Measurement of Financial Instruments
• Classification categories: Amortised cost, fair value through profit or loss (FVTPL), and fair value through other comprehensive income (FVOCI)
• Measurement bases: Initial recognition, subsequent measurement, and derecognition
• Practical exercise: Classifying and measuring different financial instruments according to IFRS 9
Learning Outcome:
Participants will develop skills in classifying and measuring financial instruments as per IFRS 9, using practical examples and exercises.
Day 3: Impairment and Expected Credit Loss (ECL) Model
• Overview of the impairment requirements: General approach and simplified approach
• Expected Credit Loss (ECL) model: Calculation methods, staging, and credit risk assessment
• Practical exercise: Applying the ECL model to loan portfolios and other financial assets
• Case study: Implementing impairment provisions in financial statements
Learning Outcome:
Participants will learn how to apply the ECL model for impairment and understand its impact on financial reporting.
Day 4: Hedge Accounting Under IFRS 9
• Principles of hedge accounting: Objectives and types of hedges (fair value hedges, cash flow hedges, and hedges of net investments)
• Requirements for hedge effectiveness: Documentation, measurement, and reporting
• Practical exercise: Applying hedge accounting principles to real-world scenari
• Case study: Implementing and reporting hedge accounting transactions
Learning Outcome:
Participants will acquire skills in implementing hedge accounting according to IFRS 9 and managing hedge effectiveness.
Day 5: Practical Application and Best Practices
• Addressing practical challenges in applying IFRS 9: Common issues and solutions
• Best practices for IFRS 9 implementation: Systems, processes, and controls
• Recent updates and developments in IFRS 9: Interpretations, amendments, and emerging trends
• Group project: Developing a comprehensive IFRS 9 implementation plan for a hypothetical company
• Course wrap-up and feedback session
Learning Outcome:
Participants will be equipped with practical knowledge for implementing IFRS 9, addressing common challenges, and applying best practices.
By the End of the Course, Participants Will Learn:
• The fundamental principles and requirements of IFRS 9 Financial Instruments
• Techniques for classifying and measuring financial instruments
• Application of the Expected Credit Loss (ECL) model for impairment
• Implementation of hedge accounting and its impact on financial statements
• Best practices and solutions for practical challenges in IFRS 9 application
Course Delivery Methods
• Expert-led lectures and interactive presentations
• Hands-on exercises and practical case studies
• Workshops on impairment, hedge accounting, and financial instrument classification
• Group projects for applying IFRS 9 in hypothetical scenarios
• Discussions on recent updates and best practices in IFRS 9 implementation
Course Dates and Venue locations:
The Certificate:
After attending and completing the entire ARUK training course, delegates will be issued a Certificate of Completion.
