Course Detail(A211 : IFRS 9 / FRS 109: Financial Instruments - A Practical Guide)

UTAP Funding

A211 : IFRS 9 / FRS 109: Financial Instruments - A Practical Guide

7.00 CPE Hours (Category 1)
Classroom

Introduction
IFRS 9/FRS 109 is the new Standard to replace IAS39/FRS39 (old standards) for annual periods beginning on or after 1 January 2018. The new Standard uses a highly structured format consisting of seven chapters dealing with specific issues in the accounting for financial instruments. Many of the chapters in the new Standards carryforward the principles contained in the old Standards, notably the objectives, scope, recognition and derecognition of financial assets and liabilities. On the other hand, the new Standards also made significant changes by introducing a logical, single classification and measurement approach for financial assets that reflects the business in which they are managed and their cash flow characteristics. Impairment of financial assets is built on a forward-looking expected credit loss model instead of the existing ‘incurred model’. The new impairment model will result in more timely recognition of loan losses and is a single model that is applicable to all financial instruments subject to impairment provision. The new Standards also improved the hedge accounting model to better link the economic of risk management with its accounting treatment.
 
 
Programme Objectives
This one-day course provides a practical guide on applying the principles of the new Standard and examines the technical changes from the existing practice under the old Standards to the impending new Standard.
This course provides an understanding on the following issues:

  • To highlight the similarity and salient difference between old Standard and the new Standard:
    • How financial assets and financial liabilities are recognition and derecognition
    • How to classification of financial assets and financial liabilities
    • The measurement issues and accounting models:
      • Fair value through profit or loss
      • Fair value through other comprehensive income
      • Amortised cost method
    • Impairment of financial assets:
      • Comparing the ‘incurred loss model’ with the ‘expected loss model’
      • The accounting requirements for loan losses and interest income
    • A quick comparison of hedge accounting under the old Standards and the new Standard
  • An examination of the transiting provisions in the new Standard

Programme Outline

Chapter 1 Objectives

  • A quick brief on the objectives of accounting for financial instruments

 
Chapter 2 Scope

  • How to handle subsidiaries, associates and jointly controlled entities
  • Leases: lesser and lessee scope
  • Issuer of equity instruments
  • Insurance contracts Vs. Financial guarantee contracts
  • Contract in business combination
  • Loan commitments
  • Provisions
  • Share-based-payments
  • Contract to buy or sell non-financial items
  • Commodity derivative contracts to be settled net in cash Vs. physical delivery

 
Chapter 3 Recognition and Derecognition

  • Recognition of financial assets and financial liabilities
    • Financial guarantee contracts
    • Regular way purchase and sale of financial assets
  • Derecognition of financial assets and financial liabilities
    • Evaluating the conditions for derecognising financial assets and financial liabilities
    • Evaluating transfer of a financial asset that qualify for derecognition
    • Identifying modification of substantial terms that trigger the derecognition of a financial liability

 
Chapter 4 Classification

  • Changing the mindset on classification and reclassification of financial assets and financial liabilities
  • How to determine ‘business model’ and the ‘contractual cash flows’
  • When to apply fair value option
  • A brief on accounting for holders of embedded derivatives

 
Chapter 5 Measurement:

  • Examine the measurement methods and accounting models for:
    • Amortised cost method
    • Fair value through profit or loss method
    • Fair value through other comprehensive income method
  • Impairment of financial assets:
    • Transition from ‘incurred loss model’ to the ‘expected loss model’
    • How to identify expected credit loss
    • Applying the effective interest method after recognition of impairment losses

 
Chapter 6 Hedge Accounting

  • Overview of accounting for the three types of hedges (cash flow, fair value, and net investment)
  • Hedge accounting documentation requirements

 
Chapter 7 Effective Date and Transition

  • How to transit from the old Standard to the new Standard

 
Training Methodology
Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions.
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course that can comprehensively cover the new principles for accounting for financial instruments, as well as a discussion on the potential changes and updates on the current Generally Accepted Accounting Practice are welcome to attend.

Competency Mapping

Category 1 = 7.00 Hours

Schedule & Fees

Date & Time

21 Oct 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 345.61
For Non-Members: $ 415.16

Programme Facilitator(s)

Danny Tan

Venue

60 Cecil Street
ISCA House
Singapore 049709

Date & Time

20 Jan 2020 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Date & Time

31 Oct 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Date & Time

22 Jan 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Testimonial

Funding

1] NTUC Union Training Assistance Programme (UTAP)
UTAP (Union Training Assistance Programme) is an individual skills upgrading account for NTUC members. NTUC member gets to enjoy UTAP funding 50% of the unfunded course fee capped at $250 every year. This excludes miscellaneous fees such as GST and registration fee etc.
 
This course is approved for UTAP support for intakes conducted between 1 April 2020 – 31 March 2021.
 
As UTAP is given on calendar year basis, and calculated based on year of training taken, it cannot be accumulated.

  • Maintained paid-up NTUC membership before course, throughout course duration and at the point of claim and;
  • Course by training provider must be supported under UTAP and training must commence within the supported period and;
  • Unfunded course fee must not be fully sponsored by company or other types of funding
  • Unfunded course fee must be S$20.00 and above, and;
  • Member must achieve a minimum of 75% attendance for each application and sat for all prescribed examination(s), if any and;
  • UTAP application must be made within 6 months after course ends.


To submit for UTAP claims, please visit http://skillsupgrade.ntuc.org.sg/. Terms and conditions apply.
 
Should you have queries on the funding scheme, you can email to UTAP@e2i.com.sg or call NTUC Membership Hotline at 6213-8008.

Programme Facilitator(s)


Danny Tan

Danny has over 30 years of experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny specialises in International Financial Reporting Standards (IFRSs) and in the last 15 years he is a partner of a firm providing training and consulting in the areas of preparing and presenting financial statements in accordance with IFRSs.


Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia. He is a fellow member of Chartered Instituted of Management Accountants, a fellow member of Association of Chartered Certified Accountants, a member of Malaysian Institute of Accountants and an associate member of Chartered Tax Institute of Malaysia.
 

Introduction
IFRS 9/FRS 109 is the new Standard to replace IAS39/FRS39 (old standards) for annual periods beginning on or after 1 January 2018. The new Standard uses a highly structured format consisting of seven chapters dealing with specific issues in the accounting for financial instruments. Many of the chapters in the new Standards carryforward the principles contained in the old Standards, notably the objectives, scope, recognition and derecognition of financial assets and liabilities. On the other hand, the new Standards also made significant changes by introducing a logical, single classification and measurement approach for financial assets that reflects the business in which they are managed and their cash flow characteristics. Impairment of financial assets is built on a forward-looking expected credit loss model instead of the existing ‘incurred model’. The new impairment model will result in more timely recognition of loan losses and is a single model that is applicable to all financial instruments subject to impairment provision. The new Standards also improved the hedge accounting model to better link the economic of risk management with its accounting treatment.
 
 
Programme Objectives
This one-day course provides a practical guide on applying the principles of the new Standard and examines the technical changes from the existing practice under the old Standards to the impending new Standard.
This course provides an understanding on the following issues:

  • To highlight the similarity and salient difference between old Standard and the new Standard:
    • How financial assets and financial liabilities are recognition and derecognition
    • How to classification of financial assets and financial liabilities
    • The measurement issues and accounting models:
      • Fair value through profit or loss
      • Fair value through other comprehensive income
      • Amortised cost method
    • Impairment of financial assets:
      • Comparing the ‘incurred loss model’ with the ‘expected loss model’
      • The accounting requirements for loan losses and interest income
    • A quick comparison of hedge accounting under the old Standards and the new Standard
  • An examination of the transiting provisions in the new Standard

Programme Outline

Chapter 1 Objectives

  • A quick brief on the objectives of accounting for financial instruments

 
Chapter 2 Scope

  • How to handle subsidiaries, associates and jointly controlled entities
  • Leases: lesser and lessee scope
  • Issuer of equity instruments
  • Insurance contracts Vs. Financial guarantee contracts
  • Contract in business combination
  • Loan commitments
  • Provisions
  • Share-based-payments
  • Contract to buy or sell non-financial items
  • Commodity derivative contracts to be settled net in cash Vs. physical delivery

 
Chapter 3 Recognition and Derecognition

  • Recognition of financial assets and financial liabilities
    • Financial guarantee contracts
    • Regular way purchase and sale of financial assets
  • Derecognition of financial assets and financial liabilities
    • Evaluating the conditions for derecognising financial assets and financial liabilities
    • Evaluating transfer of a financial asset that qualify for derecognition
    • Identifying modification of substantial terms that trigger the derecognition of a financial liability

 
Chapter 4 Classification

  • Changing the mindset on classification and reclassification of financial assets and financial liabilities
  • How to determine ‘business model’ and the ‘contractual cash flows’
  • When to apply fair value option
  • A brief on accounting for holders of embedded derivatives

 
Chapter 5 Measurement:

  • Examine the measurement methods and accounting models for:
    • Amortised cost method
    • Fair value through profit or loss method
    • Fair value through other comprehensive income method
  • Impairment of financial assets:
    • Transition from ‘incurred loss model’ to the ‘expected loss model’
    • How to identify expected credit loss
    • Applying the effective interest method after recognition of impairment losses

 
Chapter 6 Hedge Accounting

  • Overview of accounting for the three types of hedges (cash flow, fair value, and net investment)
  • Hedge accounting documentation requirements

 
Chapter 7 Effective Date and Transition

  • How to transit from the old Standard to the new Standard

 
Training Methodology
Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions.
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course that can comprehensively cover the new principles for accounting for financial instruments, as well as a discussion on the potential changes and updates on the current Generally Accepted Accounting Practice are welcome to attend.

Competency Mapping

Category 1 = 7.00 Hours

Programme Facilitator(s)

Danny Tan

Danny has over 30 years of experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny specialises in International Financial Reporting Standards (IFRSs) and in the last 15 years he is a partner of a firm providing training and consulting in the areas of preparing and presenting financial statements in accordance with IFRSs.


Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia. He is a fellow member of Chartered Instituted of Management Accountants, a fellow member of Association of Chartered Certified Accountants, a member of Malaysian Institute of Accountants and an associate member of Chartered Tax Institute of Malaysia.
 

Upcoming Schedule

Date & Time

21 Oct 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 345.61
For Non-Members: $ 415.16

Programme Facilitator(s)

Danny Tan

Venue

60 Cecil Street
ISCA House
Singapore 049709