Programme Objectives

The new Financial Instruments Standard was effective for annual periods beginning on or after 1 January 2018. FRS 109 replaced FRS 39 Financial Instruments: Recognition and Measurement. The new Standard is complex and will have a considerable impact on financial performance, operations and computer systems especially in relation to the new impairment requirements.

This full day seminar will go through the requirements of the FRS in detail (excluding hedge accounting) and will provide many examples on the impact of the standard.

Programme Outline

1. Overview

•          Major differences between FRS 109 and FRS 39

 

2. Scope - What are financial assets and financial liabilities?

 

3. Classification of financial assets

•          which financial assets qualify to be measured at amortised cost

            - what is amortised cost?

            - how is the effective interest rate computed?

•          which financial assets qualify to be measured at fair value through other comprehensive income [FVTOCI]

            - how are adjustments for amortised cost and fair value passed?

•          financial asset measured at fair value through profit or loss

            - equity instruments - irrevocable choice to measure at FVTOCI

 

            Comprehensive examples explaining how the calculations are derived and accounting entries passed for both shares and bonds for all three classifications

 

4. Classification of financial liabilities

•          financial liabilities as subsequently measured at amortised cost

• financial liabilities at fair value through profit or loss

 

5. The new impairment model including the impact of Covid -19

• the new 3 step model for measurement of expected credit losses
• Recognition of expected credit losses for assets measured at FVTOCI
• Simplified approach for trade receivables, contract assets and lease receivables

 

            Examples explaining how the impairment is computed for an impaired receivable and accounting entries passed thereon.

 

Training Methodology

Lecture style, with Examples

 

Closing Date for Registration

1 week before programme or until full enrolment

Intended For

Chief Financial Officers, Financial Controllers, Finance Managers, Auditors, Accountants and those involved in the preparation and interpretation of financial statements. Other users of financial infor-mation will also find the seminar beneficial.

Programme Facilitator(s)