IFRSs for banks and other financial services companies

Aim of the course

The Banking and Financial Services Sector is heavily regulated due to its importance in the economic development of the country. This results to regular changes and updates in the International Financial Reporting Standards that relate to the Banking and Financial Services Sector.

The recent development of new Standards and the updates on existing Standards relating to financial instruments and their disclosures requires those involved to engage in continuing training and updating.

The aim of the seminar is for participants to gain a thorough understanding of IAS 32, IAS 39 and IFRS 7 explaining the recognition, measurement and disclosure of financial instruments with emphasis in highlighting the most recent amendments.

IAS 32, IAS 39 and IFRS 7 are the International Accounting Standards that deal with the important issue of how we recognise, measure and disclose financial instruments. Financial instruments are financial assets and financial liabilities. Their recognition at measurement is extremely important in understanding the financial statements. 

The Standard describes how these categories are used, how they are accounted for and it provides useful disclosure in order to enable user to understand the exposure of the company to risks.

Course outline

Financial Instruments

• Classification and reclassification of financial instruments under IAS 39
• Fair value option
• Fair value measurement (including the May 2009 IASB Exposure Draft)
• Recognition and measurement under IAS 39
• Derecognition
• Overview of the March 2009 Exposure Draft: Derecognition (Proposed amendments to IAS 39 and IFRS 7)
• Financial guarantees
• Loan commitments

Loans and Receivables

• Recognition and measurements under IAS 39
• Fee income and loan origination costs (IAS 18 and 39)
• Impairment and restructuring
• Interaction between IAS 21 and IAS 39
• Repossessed assets

Application of the Effective Interest Method (IAS 39)

• Computing the effective interest rate
• Applying the effective interest method after recognition of impairment losses

Derivatives and Hedging (IAS 39)

• Accounting for derivatives and embedded derivatives
• Accounting for the three types of hedges (cash flow, fair value and net investment)
• Overview of portfolio hedging
• Hedge accounting documentation requirements
• Termination of hedge accounting

Financial Instruments: Presentation (IAS32)

• Liabilities and Equity
• Compound financial instruments
• Treasury shares
• Interest, dividends, losses and gains

Future Developments

• Replacement of IAS 39

Who should attend the course

People who are involved in the preparation, analysis and the audit of financial statement of companies that operate in the financial services sectors (i.e. banks, co-op organizations, insurance companies etc).

For example: Finance Directors, Financial Controllers, Risk management employees, Financial Analysts, Stockbrokers, Investors, Fund Managers, External auditors, Internal Audit department employees, Audit Department of Central Bank employees

Language: English