Course Agenda

Agenda

IFRS 9 - Course Agenda

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Day one - Wednesday 4 December

8:30

Registration and refreshments

9:00

IFRS 9 Impairment Model Overview and Accounting Mechanics

  • Overview of IFRS 9
  • Refresher classification and measurement
  • Instruments within scope
  • The three-stage model
  • Working example: Amortised cost – Accounting entries through the three stages

10:30

Morning break

11:00

Expected Credit Losses

  • 12-month expected credit losses. Initial recognition/presentation of assets
  • Lifetime credit losses
  • Time value of money
  • Expected life versus contractual period
  • Treatment of collateral
  • Exception: 12m PD as proxy for changes in lifetime credit losses
  • Exception: Low credit risk

12:30

Lunch

1:30

Significant Increase in Credit risk (SICR)

  • IASB guidance on SICR – 30 days past due backstop
  • The international banks’ SICR criteria
  •  Practical challenges in application: PDs, ratings, 30 dpd

3:00

Afternoon break

3:30

Session topic to be confirmed 

5:00

End of day one

Day two - Thursday 5 December

8:30

Refreshments

9:00

 Stage Three – Defining Default

  • IASB guidance on impaired instruments
  • Best practice in definition of default
  • Practical challenges at international banks
  • Forbearance vs. write-offs
  • Cure periods
  • Purchased or originated credit-impaired (POCI) assets

10:30

Morning break

11:00

Case Study: Modelling a Residential Real Estate Portfolio

  • Scenario selection. Industry practice and challenges
  • PD modelling methodologies
  • LGD modelling methodologies
  • Capturing non-linearity
  • Management overlays

12:30

Lunch

1:30

Off-Balance Sheet Financial Instruments

  • Balance sheet presentation of provisions
  • Expected credit loss calculation mechanics
  • Expected life estimation – practical challenges
  • International banks practice

3:00

Afternoon break

3:30

The Auditor’s View and What’s Next for Banks

  • Main areas of auditor scrutiny
  • Red flags
  • The supervisory authorities’ concerns
  • Next steps for banks – backtesting challenges

5:00

End of course