This course provides an in-depth analysis of principles in IFRS 9. The course has numerous examples and illustrations to explain the business model and cash flow characteristics test for classification of financial assets, amortised cost and fair value measurement of financial assets and financial liabilities, de-recognition of financial assets (retained servicing, continuing involvement etc.), measurement of expected credit losses and the accounting and impact of different types of hedges on financial statements. In addition, it covers the financial instruments disclosures in IFRS 7 and principles in relation to fair value measurement in IFRS 13. 

The course is designed to help preparers and users of financial statements to evaluate the impact of IFRS 9 on the financial statements.

Introduction 

• Introduction to IFRS 9 

• Recap of IAS 32 financial instruments: presentation – financial liability versus equity instruments, compound financial instruments and offsetting 
  
  

Classification of financial assets and financial liabilities 

• IFRS 9 classification: amortised cost, fair value through other comprehensive income and fair value through profit or loss 

• Business Models criteria 

• Solely Payments of Principal and Interest (SPPI) 

• Fair value option 

Measurement of financial assets and financial liabilities 

• Initial recognition, including treatment of transaction costs 

• Subsequent measurement 

• Amortised cost 

• Fair value measurement (IFRS 13) 

• Reclassification of financial assets 

• Fair value movements due to own credit risk in financial liabilities at fair value through profit or loss 

• Accounting for derivatives and embedded derivatives 

Amortised cost financial assets 

• Computing the effective interest rate 

• Applying the effective interest method under various scenarios 

• Plain vanilla bonds 

• Variable rate instruments 

• Financial assets that are prepayable 

• Loan commitments 

• Fee income and loan origination costs 

• Financial guarantees 

• Repossessed assets 

Derecognition principles 

• Derecognition of financial assets 

• Determining whether a transfer has occurred 

• Transfer/retention of substantially all risks and rewards 

• Retaining “control” and measurement of continuing involvement 

• Derecognition of financial liabilities 

Impairment of financial assets 

• Introduction to IFRS 9 expected credit loss model – background, scope and impact of the model 

• Application of IFRS 9 expected credit loss model 

• 12-month and lifetime expected credit losses 

• Staging of financial assets 

• Determination of significant increases in credit risk 

• Measurement of expected credit losses 

• Modified financial assets 

• Simplification and practical expedients 

• Purchase/origination of credit-impaired financial assets 

• Loan commitments and financial guarantee contracts 

Hedge accounting 

• Overview of hedging and accounting for three types of hedges – fair value, cash flow and net investment hedge 

• Impact of hedge accounting for interest rate and foreign exchange risk 

• IFRS 9 hedge accounting model 

• Hedged items 

• Hedging instruments 

• Qualifying criteria 

• Groups and net positions 

• Hedge documentation 

• Hedge effectiveness requirements 

• Rebalancing 

• Discontinuation 

IFRS 7 financial instruments disclosures 

Updates 

• Macro-hedging 

This course is delivered in an engaging, workshop-style format combining technical instruction with real-world application: 

• Group live instruction with sessions focused on key IFRS 9 and IFRS 7 requirements tailored to practical business contexts 

• Worked examples and case studies covering classification, measurement, impairment and hedge accounting 

• Interactive discussions and Q&A to explore complex issues, implementation challenges and best practices 

• Use of illustrative disclosures, financial statements and tools to bridge theory and practice 

• In line with VantagePoint’s sustainability commitment, course materials are provided in digital format. Printed handouts will be limited to in-class exercises only. 

This course provides 16 hours of CPE/CPD credits.

VantagePoint is currently in the process of registering with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.