Expected Credit Loss Model
Since its implementation on 1st January 2018, the IFRS 9 Financial Instrument has introduced a newly designed impairment framework that aims to provide a more forward-looking provisioning model that recognizes expected credit losses on a more timely basis. However, many entities in various countries have yet to implement the requirements of IFRS 9 or have not successfully built a robust Expected Credit Loss (ECL) model for their organizations. Even for those who have, the unpredictability of the COVID-19 situation has raised further questions on the predictability of their existing ECL model.
The IASB is conducting a post-implementation review (PIR) of the expected credit loss (ECL) requirements in IFRS 9. The IASB has identified matters to be examined. The IASB will be discussing areas such as recognition of ECL, determining significant increases in credit risk, measurement of ECL, and disclosures.
The impairment requirements of IPSAS 29 have been heavily criticized for causing delayed recognition of losses, resulting in entities only recognizing impairments when there is objective evidence of a loss event, despite the likelihood of loss being known for some time. However, the new IPSAS 41 provides a revolutionary single forward-looking model that eliminates the threshold for impairment recognition. The model requires entities to recognize expected credit losses at all times, with a dual measurement approach of either 12-month or lifetime expected credit losses. This forward-looking approach broadens the information required for determining expected credit losses and provides financial statement users with better decision-making ability. Effective from 1st January 2023, IPSAS 41 supersedes parts of IPSAS 29 and necessitates timely information provision about expected credit losses for entities applying it.
Join us for a one-day workshop dedicated to navigating the challenges and opportunities presented by the IFRS 9 and IPSAS 41 impairment model. This hands-on session will provide a clear roadmap for implementing the ECL model and highlight the synergies between regulatory and IFRS 9 impairment requirements. Our expert instructors will guide you through real-life examples and group case studies, covering topics such as ECL models, back-testing issues, and best practices in light of the COVID-19 scenario. You will gain a comprehensive understanding of the latest changes to the IFRS 9 and learn how to improve your model by addressing critical issues.
Additionally, we will offer insights into the development and direction of ECL models and discuss the implications of new standards for your business. This workshop is ideal for professionals seeking to deepen their knowledge of impairment modelling, transitional challenges, and the impact of unresolved issues. Don’t miss this opportunity to stay ahead of the curve and gain a competitive edge in today’s complex financial landscape.
Key Learning Features
- Understanding the transition from the incurred loss model to the expected credit loss model under IFRS 9 and IPSAS 41 and the implications of the change.
- Identifying the scope and objective of the expected credit loss impairment model.
- Discuss the latest challenges and modifications required in the ECL model, particularly in response to the COVID-19 pandemic.
- Exploring the proposed models for measuring expected credit losses, including the three-bucket model and credit-adjusted effective interest rate.
- Developing an understanding of the application of the ECL model to specific financial instruments such as loan commitments and financial guarantee contracts.
- Examining the implementation challenges associated with the ECL model, including the issue of pro-cyclicality and building buffer.
- Aligning the expected credit loss impairment model with Basel III/IV requirements.
- Understanding the disclosure requirements under the ECL model and the challenges ahead.
- Developing an implementation roadmap and planning for the transition to the ECL model.
- Comparing the proposed impairment model with the CECL approach proposed by the FASB.
- Identifying emerging issues and challenges related to the ECL model.
By attending this one-day workshop, participants will gain a comprehensive understanding of the expected credit loss impairment model and its implementation under IFRS 9 and IPSAS 41. They will also have the opportunity to participate in group exercises and case studies to reinforce their learning and apply the concepts in real-life scenarios. Additionally, they will be able to ask questions during the Q&A session to clarify any doubts or concerns they may have.
For More Information
We cordially invite you to contact our customer service team for additional information on our IFRS 9/IPSAS 41 Impairment Workshop and to enroll in the program. Our dedicated team is committed to providing outstanding service and addressing any questions or concerns you may have. We are excited to help you advance your professional development and eagerly anticipate hearing from you soon.
Our faculty members are highly qualified experts with a diverse range of specializations, including International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), Generally Accepted Accounting Principles (USGAAP), UK GAAP, risk management strategies, valuations, mergers & acquisitions, corporate governance, ESG reporting, supply chain management, prudential regulations, and compliance matters such as Basel regulations, Solvency II, Anti-Money Laundering regulations, and more. Additionally, they have expertise in a variety of professional development programs, such as negotiation skills, presentation skills, data management, Python, Block-Chain, Digital Assets, and Becker CPA. This depth and breadth of knowledge ensure an engaging and effective learning experience for professionals and senior executives, helping to enhance knowledge retention.
Our faculty members are seasoned professionals with a wealth of experience in their respective fields. They bring a unique combination of practical knowledge and theoretical understanding to the classroom, making them well-equipped to address the challenges faced by professionals in today’s rapidly changing business environment. Their expertise and hands-on experience ensure that participants receive the most up-to-date and relevant information, which they can immediately apply to their own work. The interactive and engaging learning environment fostered by our expert instructors also helps participants retain information and improves their overall understanding of the subject matter. Whether you’re seeking to expand your knowledge, enhance your skills, or explore new career opportunities, our faculty members are equipped to provide you with the guidance and support you need to achieve your goals.
Instructor for this course
The course instructor will be one of our highly experienced faculty members.
Our Partners in Learning
- Comparison between Incurred Loss Model and Expected Credit Loss Model
- Scope of Expected Credit Loss Model under IFRS 9/IPSAS 41
- Objective of Expected Credit Loss Impairment Model
- Latest challenges and modifications required in the ECL model due to COVID-19
- Industry examples
- Expected Credit Losses
- The main proposal
- Amortised cost of a financial asset or financial liability
- Three bucket Model
- 12-month expected credit losses
- Lifetime expected credit losses
- Credit losses
- Loss allowance
- Credit risk rating grades
- Credit-adjusted effective interest rate
- Assessing when to recognise lifetime expected credit losses
- Effect of changes in credit risk
- Mathematical models to calculate lifetime expected credit losses and their limitations
- Implementation challenges for specific instruments
- Group exercises and case studies
- Interest revenue and effective interest method
- Effective interest rate
- Gross carrying amount of a financial asset
- Modification of gain or loss
- Objective evidence of impairment
- Application of the model to assets that have been modified but not derecognised
- Application of the model to loan commitments and financial guarantee contracts
- Financial assets that are credit-impaired on initial recognition
- Simplified approach for trade receivables and lease receivables
- Exceptions to the general model
- Group exercises and case studies
- Issue of pro-cyclicality and building buffer
- Alignment with Basel III/IV
- Expected credit loss impairment model for corporates
- Disclosure requirements and challenges
- Implementation roadmap and planning
- Comparison with the CECL approach proposed by the FASB
- Effective date and transition
- Emerging issues and challenges
- Group exercise
- Question and answer session
The course agenda provided herein is the proprietary intellectual property of Shasat. It is intended solely for the use of participants enrolled in the respective course. Any reproduction, distribution, or unauthorized use of this course agenda, in whole or in part, without the explicit written consent of Shasat, is strictly prohibited and may result in legal action.
All rights reserved. ©2023, Shasat
Why you must attend?
Are you prepared for the significant changes in impairment accounting and disclosure requirements under IFRS 9 and IPSAS 41? Join our one-day Impairment Workshop, where you will gain an in-depth understanding of the latest challenges relating to ECL models, best practices, COVID-19 scenarios, and back-testing issues. Our expert trainers will guide you through real-life examples and group case studies, ensuring that you are equipped with the necessary skills and knowledge to implement the ECL model effectively.
Through this hands-on workshop, you will learn about the differences between the incurred loss model and the expected credit loss model, the scope and objectives of the ECL model under IFRS 9 and IPSAS 41, and the latest developments in the industry. You will also gain insights into mathematical models to calculate lifetime expected credit losses, their limitations, and the implementation challenges for specific instruments. In addition, you will learn about the alignment with Basel and the disclosure requirements and challenges ahead. Our workshop will provide you with a clear roadmap for implementing the ECL model and improving your impairment model’s accuracy.
Don’t miss this opportunity to enhance your professional development and stay ahead of the curve. Enroll now and join us for a comprehensive walk-through of the expected credit loss model. Our team is committed to delivering exceptional service and addressing any inquiries you may have. We look forward to welcoming you to our workshop and helping you achieve your professional goals.
The training program will employ a comprehensive and engaging approach to learning, designed to deliver maximum impact and retention. The methodology includes:
- A user-friendly slide deck that presents the concepts, methodologies, and principles in a clear and concise manner, making the material easily accessible to all attendees.
- Interactive sessions featuring real-life case studies to provide hands-on experience and bring the material to life.
- Explanations of concepts and methodologies through the use of examples and distinct scenarios, allow attendees to understand the material in context.
- Group exercises designed to illustrate accounting principles, encouraging collaboration, and fostering a deeper understanding of the material.
- Discussions on IFRS vs US GAAP differences, industry issues, and diversity in practices provide attendees with a well-rounded understanding of the subject matter.
- Access to additional course material and handouts, ensuring attendees have a comprehensive reference resource to support their learning.
- An open and inclusive atmosphere that encourages attendees to ask questions and engage in discussion, ensuring a thorough understanding of the material.
The combination of these elements creates a dynamic and engaging learning experience that will support the professional development of all attendees.
Who should attend?
This comprehensive IFRS 9 and IPSAS 41 Impairment workshop is designed to meet the needs of professionals across all industry groups, from beginners to specialists. Whether you’re a CFO, credit risk professional, accountant, financial controller, auditor, or tax manager, this course provides essential insights into the latest accounting standards and disclosure requirements.
Other roles that will benefit from this workshop include financial reporting executives, treasurers, budget officers, forecasting specialists, risk managers, merchant bankers, regulators, academicians, accountancy students, analysts, fund managers, investors, strategic and financial planners, private equity and M&A specialists, investment bankers, corporate bankers, investment managers, and senior operations managers.
No matter your background or experience level, this workshop provides valuable knowledge and skills that will help you stay ahead in today’s global reporting environment. Join us today and gain the competitive edge you need to succeed.
Upon completion of the course, all delegates will receive an evaluation questionnaire aimed at gathering valuable feedback. This feedback is crucial to Shasat’s ongoing commitment to improving the quality of its learning solutions. By analyzing the trends in the responses, we are able to continuously enhance and refine our offerings to meet the evolving needs of our clients.
Venue & other info
Our training programs take place at the most prestigious professional training facilities in the city. Our venues have been meticulously chosen and expertly crafted to deliver an unparalleled and sophisticated learning experience. To further elevate your training journey, we will offer an array of refreshments including gourmet tea/coffee, delectable snacks, and a sumptuous lunch to sustain you throughout the course. Your comfort and satisfaction are of the utmost importance to us. One week before the program begins, you will receive comprehensive joining instructions that include the exact venue details.
Please note that accommodation arrangements are the responsibility of the attendee.
Workshop Delivery (Online Programs)
The workshop will be delivered via the WebEx platform. Upon registration, all participants will receive comprehensive joining instructions for the live workshop. This fully virtual event will encompass a live-streamed presentation, personalized networking opportunities, interactive Q&A sessions, engaging polls, and post-event consultation to address specific concerns and support your continued growth.
Please be advised that for all in-person training programs, joining instructions will be sent via email to registered participants one week prior to the program’s commencement. These instructions will provide comprehensive information regarding the venue location, date, and time, as well as other important details such as parking arrangements, dress code, and any necessary equipment or materials. Kindly ensure that you carefully review the joining instructions and follow the guidelines provided to ensure a smooth and well-organized experience during the program.
Changes to the conference
Shasat reserves the right, at its sole discretion, to make modifications to the format, speakers, participants, content, venue location, program, or any other aspect of the conference, at any time and for any reason, without incurring any liability. This policy has been implemented due to recent events such as the Covid-19 pandemic and other jurisdictional restrictions. These modifications may include but are not limited to, changes necessitated by a Force Majeure Event
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