ΠΕΡΙΓΡΑΦΗ

This seminar is designed for financial professionals, accountants, and auditors who seek a comprehensive understanding of managing impairments under IFRS 9. The course provides a detailed exploration of the Expected Credit Loss (ECL) model, its application in financial services, and the implications for financial reporting and decision-making.

Participants will gain insights into the principles and mechanics of the ECL model, including staging, probability of default (PD), loss given default (LGD), and exposure at default (EAD). The seminar also covers disclosure requirements and practical challenges financial institutions face in implementing and complying with IFRS 9.

Real-world case studies, practical exercises, and interactive discussions will equip attendees with the skills to apply the standard effectively in their organizations while addressing common pitfalls.

ΣΚΟΠΟΣ ΣΕΜΙΝΑΡΙΟΥ

By the end of the programme, participants will be able to: 

• Understand the conceptual framework and principles of IFRS 9 impairment models, including the shift from the incurred loss model to the Expected Credit Loss (ECL) approach.
• Gain detailed knowledge of ECL components (Probability of Default, Loss Given Default, Exposure at Default) and their role in impairment calculations.
• Understand the staging criteria for financial instruments (Stages 1, 2, and 3) and how they impact ECL estimates.
• Acquire comprehensive knowledge of disclosure requirements under IFRS 7 and IFRS 9, with a focus on transparency in financial reporting.
• Apply staging criteria to classify financial instruments and calculate both lifetime and 12-month ECLs.
• Analyse and estimate ECL components using appropriate methodologies, incorporating forward-looking information and macroeconomic factors.
• Develop clear and comprehensive financial disclosures that meet IFRS 7 and IFRS 9 requirements.
• Solve practical impairment scenarios through hands-on exercises, including sensitivity analyses and case studies.
• Use advanced impairment modelling techniques to improve credit risk management practices.
• Demonstrate a proactive approach to managing impairments and enhancing credit risk practices.
• Embrace transparency, accountability, and ethical judgment in financial reporting and disclosures.
• Cultivate a commitment to continuous learning to stay updated with evolving IFRS standards and regulatory requirements.
• Foster confidence and collaboration in navigating the complexities of impairment management.

ΣΕ ΠΟΙΟΥΣ ΑΠΕΥΘΥΝΕΤΑΙ

• Financial professionals, accountants, and auditors in the financial services sector
• Risk managers and credit analysts
• Compliance officers and regulatory reporting specialists
• Anyone involved in financial reporting and impairment modelling

ΠΕΡΙΣΣΟΤΕΡΕΣ ΠΛΗΡΟΦΟΡΙΕΣ

Training Outline 

Introduction to IFRS 9 and Impairments

• Overview of IFRS 9: Key objectives and principles
• Shift from incurred loss to expected credit loss model
• Importance of impairment management in financial services 

The Expected Credit Loss (ECL) Model

• Components of ECL: PD, LGD, and EAD
• Lifetime vs. 12-month ECL: Understanding staging criteria (Stages 1, 2, and 3)
• Forward-looking information: Incorporating macroeconomic factors 

Staging of Financial Instruments

• Criteria for classification into Stages 1, 2, and 3
• Movement between stages and implications for ECL calculation
• Practical examples and scenarios 

Estimation Techniques for ECL Components

• Methods for calculating Probability of Default (PD)
• Loss Given Default (LGD): Adjustments and assumptions
• Exposure at Default (EAD): Determining values and exposures
• Stress testing and sensitivity analysis 

Disclosure Requirements under IFRS 7 and IFRS 9

• Key disclosures for financial statements
• Communicating credit risk management policies
• Enhancing transparency and comparability 

Implementation Challenges and Best Practices

• Practical challenges in data collection, modelling, and validation
• Addressing regulatory expectations and audits
• Leveraging technology and automation for ECL calculations 

Case Studies and Interactive Exercises

• Real-world examples of impairment management in financial institutions
• Hands-on group exercise: Calculating ECL for a portfolio
• Discussion: Lessons learned and best practices 

Questions and Answers

Training Style 

• Illustration of key terms and concepts
• Preparation and discussion of practical examples, including mini cases
• The course will have both a theoretical and practical framework with real examples drawn from actual companies, local and international
• Activities and Break-out groups 

CPD Recognition 

This programme may be approved for up to 7 CPD units in Accounting and Auditing. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.