International Accounting Standard Board (IASB) issued IFRS 9 Financial Instruments to replace IAS 39. IFRS 9 requires among other provisions, the impairment of financial instruments carried at amortized cost to be based on Expected Credit Loss (ECL) Model as compared to the Incurred Credit Loss (ICL) Model under IAS 39. The standard also introduces new classification of financial instruments; detailed disclosures and a guidance on accounting for hedging transactions. IFRS 9 is effective for accounting period beginning on or after 1st January 2018.
The Bank of Tanzania (BOT) through a circular dated on 6th June 2017 directed all banks and financial institutions to ensure that they comply with IFRS 9 provisions. The BOT has also issued further instructions including a guidance note on implementation of IFRS 9.
Auditax international through its experienced trainers shall deliver this course in a clear, simple language and combined with model financial statements and practical examples. The course is also delivered through live group interaction. Case studies are also used. Certificate and training materials are issued at the end of the course.
On attending this course, participants will be able to:
i. Obtain understanding of historical background and overview of IFRS 9 financial instruments.
ii. Conceptualize of the IFRS 9 financial instruments and BOT requirements on implementation of IFRS 9
iii. Understand basic and mechanism for computing both 12 months and lifetime ECL.
iv. Working through IFRS 9 ECL Model especially on the following areas;
- Basic assumptions made on computations of cure rate, recovery rate and effective interest rate.
v. Grasp the challenges observed in implementing IFRS 9 Financial instruments.
vi. Discussion on the key areas in the IFRS 9 ECL model that need special consideration.
vii. Get updates and understanding on latest microfinance Act, 2018 and its Regulation.
Fees and Payment
TZS 500,000 per person (VAT inclusive)-including lunch to be paid through bank deposits to Account no: 0150303162800, CRDB Bank, Account Name: Auditax International or Cheques to be written in the name of Auditax International and delivered to our offices: Dar es Salaam: PPF Tower, 7th Floor, Ohio Street / Garden Avenue.
If you are planning to attend kindly confirm through Email: email@example.com or by calling +255 719 878490 or +255 652864952
• Historical background of the IFRS 9 Financial Instruments
• Gap analysis between IFRS 9 and IAS 39
• Overview of microfinance Act, 2018 and its regulation.
• Overview of Banks and Microfinance Act, 2014
2. Classification and Measurement of financial assets and liabilities.
• Principles in classifying and measuring both financial assets and liabilities
• Understanding business model criteria in classifying financial assets and liabilities
• Understanding cash flow characteristics criteria in classifying financial assets and liabilities
• Challenges in classifying financial assets and liabilities
3. Concept of 12 months and lifetime ECL.
• Assessment of significant increase in credit risks
• Staging and migration of financial assets.
• Challenges observed in staging and migrating financial assets
4. Practical demonstration of a sample IFRS 9 ECL Model
• Basics for computations of probability of defaults (PDs)
• Basics for computations of exposure at default (EAD)
• Basics for computations of loss given default (LGD)
• Basics for computations of 12 months and lifetime ECLs
• Basic assumptions made on computations of cure rate, recovery rate and effective interest rate
5. IFRS 9 ECL Model Validation Techniques
6. Practical challenges observed in implementing IFRS 9 Financial instruments in Tanzania
7. Key areas in the IFRS 9 ECL Model that need special focus.
Who should attend?
• Finance Managers and Senior Officers
• Credit Managers and Senior officers
• Risk Managers and Offers
• Internal Auditors
• Treasury staff
• Financial analysts
• External Auditors & Consultants.
• IT Personnel’s
• Accountants in organization with significant value of financial instruments
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