#ifrs 9

Since the implementation of the IFRS 9 Financial Instrument on January 1, 2018, a new era of financial accounting has emerged, transforming how organizations recognize expected credit losses. This forward-looking provisioning model aimed to provide a more accurate assessment of credit risk and timely recognition of potential losses. However, challenges persist as many entities worldwide have yet to fully implement IFRS 9's requirements or establish robust Expected Credit Loss (ECL) models. Furthermore, the unpredictable nature of the COVID-19 pandemic has raised concerns about the predictability of existing ECL models.

To address these issues, the International Accounting Standards Board (IASB) is conducting a post-implementation review (PIR) of the expected credit loss (ECL) requirements in IFRS 9. The review encompasses critical areas such as the recognition of ECL, determining significant increases in credit risk, measurement of ECL, and disclosures, with the aim of enhancing the effectiveness and relevance of the model.

In parallel, the accounting landscape is undergoing a significant change with the introduction of IPSAS 41, effective from January 1, 2023, replacing parts of IPSAS 29. IPSAS 41 introduces a revolutionary single forward-looking model that eliminates the threshold for impairment recognition. Under this new model, entities are required to recognize expected credit losses continuously, utilizing a dual measurement approach of either 12-month or lifetime expected credit losses. This forward-looking approach enhances the quality of information available to stakeholders, aiding better decision-making.

For those seeking a comprehensive understanding of these changes, a one-day workshop dedicated to navigating the challenges and opportunities presented by the IFRS 9 and IPSAS 41 impairment models is being offered. This hands-on session provides participants with a clear roadmap for implementing the ECL model and highlights the synergies between regulatory and IFRS 9 impairment requirements. Expert instructors will guide attendees through real-life examples and group case studies, addressing critical issues such as ECL models, back-testing challenges, and best practices, all within the context of the ongoing COVID-19 pandemic.

During this workshop, participants will have the opportunity to delve into key aspects of the expected credit loss impairment model, including understanding the transition from the incurred loss model to the expected credit loss model under IFRS 9 and IPSAS 41 and the implications of this transition. They will also explore the scope and objective of the expected credit loss impairment model, discussing the latest challenges and modifications required in the ECL model, particularly in response to the COVID-19 pandemic.

Additionally, participants will examine proposed models for measuring expected credit losses, including the three-bucket model and credit-adjusted effective interest rate. They will gain insights into the application of the ECL model to specific financial instruments such as loan commitments and financial guarantee contracts and explore the intricacies of implementation challenges associated with the ECL model, including the issue of pro-cyclicality and building buffer.

This workshop also addresses the alignment of the expected credit loss impairment model with Basel III/IV requirements and sheds light on the disclosure requirements under the ECL model and the challenges ahead. Participants will have the opportunity to develop an implementation roadmap and plan for the transition to the ECL model while comparing it with the proposed impairment model by the FASB (CECL approach). Furthermore, they will identify emerging issues and challenges related to the ECL model, ensuring a comprehensive grasp of this vital financial accounting change.

By attending this one-day workshop, participants will not only gain a comprehensive understanding of the expected credit loss impairment model and its implementation under IFRS 9 and IPSAS 41 but also have the opportunity to participate in group exercises and case studies to reinforce their learning. Additionally, they will be able to seek clarification during the Q&A sessions to address any doubts or concerns they may have.

Here is the schedule of upcoming programs by Shasat. However, we recommend you continue to visit Shasat's website for the most up-to-date program schedules.

IFRS 9 and IPSAS 41 Impairment Workshop | GID 23002 | Zurich: November 4, 2023

IFRS 9 and IPSAS 41 Impairment Workshop | GID 23003 | Dubai: November 15, 2023

IFRS 9 and IPSAS 41 Impairment Workshop | GID 23004 | Singapore: October 17, 2023

IFRS 9 and IPSAS 41 Impairment Workshop | GID 23007 | Cape Town: October 10, 2023

IFRS 9 and IPSAS 41 Impairment Workshop | GID 23012 | Sydney: November 23, 2023

IFRS 9 and IPSAS 41 Impairment Workshop | GID 23013 | Miami: December 16, 2023

IFRS 9 and IPSAS 41 Impairment Workshop | GID 23000 | Online | Available on request

For more details and to enrol in IFRS 9 and IPSAS 41 Impairment Workshop, please visit:

In an era where financial accounting plays a pivotal role across diverse industries, Shasat, a prominent educational institution, has unveiled an essential learning opportunity for professionals seeking a comprehensive understanding of the International Financial Reporting Standards (IFRS) 9. This recently launched program aims to empower individuals with in-depth knowledge about the accounting of financial instruments under IFRS 9, which came into effect on 1 January 2018.

The International Accounting Standards Board (IASB) orchestrated a significant overhaul of accounting rules for financial instruments, necessitating a profound understanding of these changes. With numerous insurance companies globally and entities in specific countries actively involved in the implementation of IFRS 9, staying informed is of utmost importance.

Furthermore, in May 2022, the IASB initiated a maintenance project to amend IFRS 9 and IFRS 7 in response to a post-implementation review. Subsequently, in October 2022, the IASB made tentative decisions to introduce additional amendments regarding the derecognition of financial liabilities through electronic cash transfers and disclosure requirements for equity investments under the fair value option.

The core areas of IFRS 9 that this workshop will delve into include classification and measurement, impairment methodology, hedge accounting, and derecognition. Given the pervasive impact of IFRS 9 on business functions, understanding its implications for your overall business model and financial reporting functions is imperative. The changes to the impairment methodology are particularly noteworthy, with most organizations grappling with time constraints to equip their teams with the necessary knowledge and strategic insights for IFRS 9 implementation.

The workshop will feature an esteemed instructor who will share insights and experiences related to the development and direction of IFRS 9. Topics covered will include differences between existing and modified approaches, emerging industry challenges, and an implementation roadmap for these accounting standards. Attendees can also expect discussions on how these changes will affect their businesses.

The workshop promises to be a comprehensive two-day event, offering participants an opportunity to stay current with the latest international accounting standards. This knowledge will better prepare organizations to navigate the impact of these significant changes.

The in-person workshop on IFRS 9 for Financial Instruments offers participants a comprehensive learning experience, covering a wide range of critical topics. Throughout the workshop, attendees will delve into important areas such as understanding recent amendments proposed by the IASB for IFRS 9, achieving amortized cost criteria for financial instruments, applying the Business Model Test and SPPI criteria to existing portfolios, and navigating the fair value through OCI category (FVOCI). Additionally, the workshop will address complex aspects of accounting, including unquoted equity instruments and hybrid instruments, managing own credit risk, addressing accounting mismatches, and changing the classification and measurement of financial instruments under IFRS 9.

Participants will gain valuable insights into the Impairment model, exploring the differences between Incurred loss and expected credit loss models and their impact on impairment allowances. The workshop also covers the application of the expected credit loss model to various financial instruments like trade receivables, financial guarantees, and revolving credit facilities. Furthermore, attendees will learn about hedge engineering, meeting hedge accounting documentation requirements, designing and testing hedge effectiveness, identifying hidden derivatives, and separating hybrid instruments when necessary. To provide a comprehensive perspective, the workshop will conclude by comparing the principal similarities and differences between US GAAP and IFRS in the realm of derivatives and hedge accounting.  Here is the schedule of upcoming programs by Shasat. However, we recommend you continue to visit Shasat's website for the most up-to-date program schedules.

IFRS 9 For Financial Instruments Workshop | GID 20002  | Zurich: November 3-4, 2023

IFRS 9 For Financial Instruments Workshop | GID 20004 | Singapore: October 16-17, 2023

IFRS 9 For Financial Instruments Workshop | GID 20005  | Toronto: September 29-30, 2023

IFRS 9 For Financial Instruments Workshop | GID 20007 | Cape Town: October 9-10, 2023

IFRS 9 For Financial Instruments Workshop |  GID 20008 | Bermuda: September 28-29, 2023

IFRS 9 For Financial Instruments Workshop | GID 20009 | Sao Paulo: October 16-17, 2023

IFRS 9 For Financial Instruments Workshop | GID 20010 | Seoul: October 30-31, 2023

IFRS 9 For Financial Instruments Workshop | GID 20011 | Dubai: November 14-15, 2023

IFRS 9 For Financial Instruments Workshop | GID 20012 | Sydney: November 22-23, 2023

IFRS 9 For Financial Instruments Workshop | GID 20013 | Miami: December 15-16, 2023

IFRS 9 For Financial Instruments Workshop | GID 20000 | Online | Available on request

For more details and to enrol in the IFRS 9 For Financial Instruments Workshop, please visit: https://shasat.co.uk/product-category/ifrs-9-for-financial-instruments/

Shasat's IFRS 9 workshop promises to be an invaluable resource for professionals seeking to navigate the intricacies of financial instruments and their accounting under the International Financial Reporting Standards. Participants can anticipate gaining a profound understanding of IFRS 9 and its implications for their organizations, positioning themselves as informed and well-prepared leaders in the evolving landscape of financial accounting.