Accounting for Financial Instruments and Consolidation in Banks (IFRS 9 and IFRS 10)
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I really enjoyed this course, it has a good content with excellent examples on accounting topics easy to apply in real life. Totally recommend it!
← | →
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This was a pleasant course with a decent wide foundation on applicable bookkeeping points with genuine illustrations.
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Short course
In London
Description
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Type
Short course
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Location
London
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Duration
2 Days
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Start date
Different dates available
This course will give you a deep understanding of the challenges faced by banks when applying financial instruments including derivatives accounting under IFRS 9 and when assessing whether a structured entity (i.e. a special purpose vehicle) should be consolidated under IFRS 10.
Facilities
Location
Start date
Start date
About this course
The seminar has a practical approach and is split into two modules. The first module covers financial instruments accounting under IFRS 9. Learning is based on a heavy use of real examples, taken from the practical discussions that the teacher has had with European global banks. Derivatives, repos and contingent convertible (CoCos) are covered in detail.
The second module covers consolidation of structured entities under IFRS 10. The module is taught with a hands on approach, dissecting and performing a step by step assessment of two real life cases: (i) an RBS deleveraging securitisation executed with Blackstone and (ii) an investment fund sponsored by Deutsche Bank.
Accounting and regulatory capital professionals at banks
Banking auditors at accounting firms
Credit and equity research analysts
Banking regulators
Basel III optimization structurers in investment banks
Basic understanding of a bank´s financial statements
Basic understanding of repos, interest rate swaps and credit default swaps
Basic understanding of securitisations
Reviews
-
I really enjoyed this course, it has a good content with excellent examples on accounting topics easy to apply in real life. Totally recommend it!
← | →
-
This was a pleasant course with a decent wide foundation on applicable bookkeeping points with genuine illustrations.
← | →
Course rating
Recommended
Centre rating
Sam Taylor
Anonymous
This centre's achievements
All courses are up to date
The average rating is higher than 3.7
More than 50 reviews in the last 12 months
This centre has featured on Emagister for 16 years
Subjects
- IFRS
- Financial Training
- Financial
- Equity
- IAS
- Returns
- Contracts
- Derivatives
- Financial Instruments
- Accounting
- Financial liabilities
- Financial Assets
- Repos
- Macrohedging
- Investments
- Consolidation conclusion
- Compound instruments
Teachers and trainers (1)
Juan Ramirez
Teacher
Juan Ramirez is a senior professional at one of the big 4 auditing firms with first-hand experience on providing accounting advice on specific complex financial instruments and transactions, primarily related to (de)recognition, consolidation and hedging. Previously, he was responsible for the marketing of strategic equity derivatives to corporate and banking clients at BNP Paribas in London. Juan is the author of “Accounting for Derivatives” and “Handbook of Corporate Derivatives and Equity Capital Markets” books, both published by Wiley.
Course programme
Accounting for financial instruments Applying IFRS 9 in banking
Conceptual Framework
- Introduction to IFRS 9
- Interaction with other IFRS standards
- Financial assets classification under IFRS 9. Comparison to IAS 39
- Financial liabilities classification under IFRS 9. Comparison to IAS 39
- Deutsche Bank´s balance sheet structure
- Deutsche Bank´s OCI structure
- Accounting for repos
- Lehman´s Repo 108
- Repos to maturity
- Accounting for derivatives – Hedge accounting
- Fair valuation under IFRS 13: CVAs and DVAs
- Asset swap rationale
- Hedge documentation
- Hedge fair valuation and testing
- Accounting entries
- Explanation of the objectives
- Steps to its application and its weaknesses under IAS 39
- IFRS 9 macrohedging project
- Asset swap and long term repo rationale
- Accounting implications
- Hedging credit risk under IFRS 9
- Credit default swaps vs financial guarantee contracts
- Erste Bank´s financial guarantee contracts restatement
- Hybrid vs compound instruments
- CoCo types and mechanics: trigger events and recovery values
- UBS’s CoCo Accounting for principal write off CoCos
- Barclays’s CoCo Accounting for convertible into equity CoCos
- The three bucket model
- Good book vs bad book
Day Two
Deleveraging balance sheets and assessing consolidation Applying IFRS 10 in banking
Introduction
- IFRS 10 – The theoretical framework
- Equity investments recognition
- Accounting mechanics of equity method consolidated investments
- Accounting impact of partial disposals
- Structured entity set up
- Deleveraging rationale
- Design of the securitisation structure
- Identification of the relevant activities
- Decision making of the relevant activities
- Ability of RBS’s rights to direct activities
- Assessment of RBS exposure to variable returns
- RBS ability to affect returns through power
- Consolidation conclusion
- Deutsche Bank´s investment funds
- Identification of the relevant activities
- Decision making of the relevant activities
- Ability of RBS’s rights to direct activities
- Assessment of RBS exposure to variable returns
- RBS ability to affect returns through power: Agent vs principal
- Consolidation conclusion
- Case study: Goldman Sachs arbitrage between corporate bond and CDS market
- Case study: Covered bonds
- Main principles of IFRS 12
- UBS disclosure
Accounting for Financial Instruments and Consolidation in Banks (IFRS 9 and IFRS 10)