IFRS 9: Advanced Financial Instrument

IFRS 9: Advanced Financial Instrument

A lot of subject matter experts expect the adoption of IFRS 9 to be challenging; hence, the need to get the right skills to efficiently apply the standard seamlessly. The three major domains to be considered while implementing IFRS 9 include measurement, impairment and hedge accounting:

Classification and Measurement

       • Classification under IFRS 9 for investments in debt instruments is driven by the entity’s business model and their contractual cash flow characteristics.

       • A financial asset is measured at amortised cost if both of the following criteria are met:

               • The asset is held to collect its contractual cash flows; and

               • The asset’s contractual cash flows represent ‘solely payments of principal and interest’ (‘SPPI’)


       • Based on Expected Loss Model

Hedge Accounting

       • New Hedge Accounting Guidelines


Training Objectives

Gain an understanding of the requirements of IFRS 9 in relations to initial recognition, classification and measurement of financial instruments

Identify the key difference between the incurred loss model and the expected loss model

Understand the calculation of impairment using the Expected Credit Loss (ECL) Model

Understand the impact of ECL

Develop competencies in Credit Risk Modeling and apply the same to my company

Develop competencies to apply the guidance of IFRS 9


Summarized Course Content

- Introduction and Scope of IFRS 9

- Initial Recognition

- Classification and measurements

- Derecognition:

- Impairments:

- Financial Instruments Disclosure

- Credit Risk Modeling and IFRS 9 Calculations