IFRS 9 Financial Instruments is a challenging accounting standard to understand, especially for entities who are outside of the Financial Services sector. The requirements are at-times highly complex, cumbersome and difficult to apply which has resulted in entities incurring audit findings and the JSE Proactive Monitoring Committee raising material concerns in relation to annual reports reviewed each year since the standard became effective in 2018.
This objective of this webinar is to delve into the material areas of IFRS 9 affecting non-banking entities and provide guidance on how to interpret and apply the standard both from a theoretical and practical perspective.
This webinar covers the following:
- Scope of IFRS 9 and applicability to non-monetary assets and liabilities
- Classifying financial assets – the business model and SPPI assessment;
- Derecognition principles – modification accounting, the 10% test on financial liability modifications, debt factoring, trade financing, replacements, extensions and transfers.
- Expected credit loss model basics – general and simplified approach scoping, provision matrix accounting, calculating loss-given default rates, probability-weighted scenario application
- Amortised cost accounting – including a practical guide to applying Effective interest rate
- Derivatives and hedge accounting – derivative identification, embedded derivatives and hedge accounting basics
- Disclosure requirements under IFRS 7
The webinar will cover both the theory associated with the above topics as well as practical examples and model disclosures.
