IFRS 9 in detail – impairment

The new method of calculating and reporting financial asset impairment (financial assets such as loans, receivables, securities, etc.) is the most significant change introduced by IFRS 9. Impairment constitutes a challenge for accounting departments as well as for risk management and IT, which will have to adjust systems and monitored data.

Who are the intended participants?

Managers of finance, planning and controlling departments of financial or non-financial institutions.
Employees of accounting or controlling departments engaged in the preparation of financial statements in accordance with IFRS.
Employees of risk management departments engaged in the calculation of impairment (risk part, data part).
Employees responsible for the preparation and analysis of financial plans and reports.

Programme

A new expected loss model under IFRS 9.
A basic analysis of the impact of the new approach to impairment calculation on the balance sheet and income statement.
Requirements on data, systems and processes to obtain information necessary to determine impairment.
Practical problems during the calculation of impairment relating to various portfolios (loans, securities, receivables).
Differences between the expected loss model under IFRS 9 and the IRB approach.

Benefits

During the course, you will:

Become familiar with the impact of the expected loss model on the results reported by organisations.
Obtain practical knowledge for the calculation of impairment of various types of assets under IFRS 9.
Become aware of the scope of necessary changes to data requirements, systems and processes for proper operations under the new standard.
Be able to identify weaknesses in your organisation that may obstruct effective transition to IFRS 9.