IFRS 9 (Financial Instruments) and IFRS 16 (Leases)

This one day training course will enhance the core competencies of the participants to combat with the problems they are facing to deal with latest updates about the treatment of Financial Instruments and Leases because these are two major areas where accounting and finance professionals are facing issues to understand and implement the core concept. It is principle pre- requisite for every accounting and finance professional to update their knowledge to apply new concepts in their practical life. After completion of this workshop participants will be competent enough to manage all related issues regarding accounting treatment of Financial instruments and Leases.

Course Outline
IFRS 9 – Financial Instruments

IFRS 9 Financial Instruments was developed by the IASB to replace IAS 39 Financial Instruments Recognition and Measurement. The IASB completed IFRS 9 in July 2014, by publishing a final standard which incorporates the requirements of all three phases of the financial instruments projects, being

  • Classification and Measurement
  • Impairment
  • Hedge Accounting
Financial Instruments
  • Scope
  • Definition
Financial Assets - Classification
  • Amortized Cost
  • Debts Instruments at FVOCI
  • Equity Instruments at FVOCI
  • Financial Assets at FVTPL
  • Interaction of debt factoring with the classification model
  • Hybrid contracts containing embedded derivatives
Financial Liabilities – Classification
Measurement
  • Measurement on initial recognition
    • Day one gain or losses
    • Trade receivables
    • Transaction costs
  • Subsequent measurement
    • Financial assets
    • Financial liabilities
Impairment
  • Overview of new impairment model
    • General impairment model
    • Recognition of impairment
    • Determining significant increase in credit risk and credit impaired financial assets
    • Exception for low credit financial assets
  • Simplified impairment model
  • Further implications
  • Impairment transition
Hedge Accounting
  • Qualifying criteria and effectiveness testing
  • Hedge items
  • Hedging instruments
  • Presentation
IFRS 16 – Leases

IFRS 16 Leases brings significant changes in accounting requirement for lease accounting, primarily for lessees. IFRS 16 replaces the existing suite of standards and interpretations on leases:

  • IAS 17 Leases
  • IFRIC 4 Determining whether an arrangement contains a lease
  • SIC 15 Operating lease- incentives
  • SIC 27 Evaluating the substance of transactions involving the legal form of a lease
Leases
  • Scope
  • Recognition exemption
Identifying a Lease
  • Applying the definition of a lease
  • Identified asset
  • Obtaining economic benefits
  • Right to direct the use of asset
Determining the Lease Term
  • Non- cancelable period
  • Lease extension and termination options
  • Revision to lease term
Recognition and Measurement
  • Lease liability – Initial recognition
  • Discount rate on initial recognition
  • Right of use asset – Initial recognition
  • Lease liability – Subsequent measurement
  • Right of use asset – Subsequent measurement
  • Re- measurement of leases
Presentation
Disclosure
Lessor Accounting
  • Separation of lease and non- lease components
  • Sub – leasing
  • Lease modification
    • Finance lease
    • Operating lease
  • Disclosure requirements
Sale and leaseback transactions
Take Away
  • Expert level understating of latest updates regarding accounting of financial instruments and leases
Suitable For

Persons from Accounting and Finance Department.

Duration: 5 Days
Tentative Dates: 21st December 2019,
23st December 2019,
26st December 2019,
28st December 2019,
30st December 2019
Fee: Rs. 9000 Per Participant (10% discount for group of participants)

MIAN AHMAD FARHAN, FCA, MBA

An enthusiastic, competent, self-motivated and hardworking Business Graduate and Chartered Accountant holding 25 years of sound professional exposure with proficiency in multiple aspects of business governance, educational leadership, financial advisory, and corporate training.

He is able to use own initiatives and to deliver quality as team leader. He possesses strong interpersonal and communication skills to managing and motivating operational teams, managers, service users, and delivery partners to achieve set objectives.

He is a motivational speaker and has delivered numerous lectures on soft skills and life skills. As a corporate trainer he enjoys expertise in the area of Accounting and Finance. His competencies as a professional trainer are proven nationally and internationally.

ARSHAD BHUTTA, CMA (USA), ACCA (Uk)

An educationist, trainer, mentor and coach.  An enthusiastic, competent, self-motivated and hard-working Management Accountant having 11 years of sound professional exposure with proficiency in multiple aspects of Management Accounting, Finance, Financial Accounting, Coaching and Training services. Professional Trainer with International Exposure conducting numerous training’s for professionals of different nationalities; including UAE, Egypt, Jordan, Philippine, India, Pakistan, Afghanistan, Somalia, Morocco, Saudi Arabia, Germany, Kenya, Sri Lank, Qatar in the areas: Financial Accounting, Corporate Reporting, Management Accounting, Performance Management, Business Analysis, Financial Management, Corporate Finance and Internal Audit.