About

KEY LEARNING OUTCOMES

• Provide practical guidance on current and forthcoming changes to IFRS 9, IFRS 7 and Hedge Accounting
• Ensure financial statements comply with current IFRS
• Understand IFRS 9 requirements for classifying and measuring financial assets
• Understand IFRS 7 disclosure and recent amendments which entities are finding hard to meet
• Understand Hedge accounting, one of the most complex and least understood aspects of IFRS

ABOUT THE COURSE
Accounting and finance professionals need to begin and prepare for their IFRS conversion efforts immediately as there will be a lot of work ahead, with further changes and refinements down the road.

Demystifying IFRS 9, IFRS 7 and Hedge Accounting gets you up-to-speed with all the necessary knowledge and technicalities involved in meeting the requirements of financial instruments accounting.

The course covers:

IFRS 9 which introduces new requirements for classifying and measuring financial assets that must be applied starting 1 January 2013.

• IFRS 7 which has some challenging disclosure which entities are finding hard to meet. There are also recent amendments to this standard when entities will apply in 2010.
• Hedge accounting which is regarded as one of the most complex and least understood aspect of IFRS. The course will take you through hedge models  and strategies commonly used.

WHO SHOULD ATTEND?
• Chief Financial Officers & Finance Directors
• Analysts
• Accountants / Financial Controllers
• Budget Officers / Forecasting Specialists
• Fund Managers and Investors
• Strategic Planners
• Private Equity and M&A Specialists
• Investment Bankers
• Corporate Bankers
• Auditors
• Tax Directors

Outline

Day One

Scope of IFRS 9
• Introduction and background
• References to NZIAS 39
• Old model vs. new model
• Effective date

Links between IFRS9 and other Standards
• IAS 32
• IAS 39
• IFRS 7
   
Classification of Financial Assets
• Financial Assets in the Scope of IAS 39
• Old model – what’s changed
• New model - Basics
• Amortised cost - Basics
• Fair Value - Basics
• Business model – to collect contractual cashflows
• The SPPI criterion
• Designating an instrument at Fair Value
• Exceptions
• Equity instruments
• Reclassification

Measurement of Amortised Cost and Fair Value
• Initial measurement
• Financial assets subsequently measured at amortised cost
• Financial assets subsequently measured at fair value  
• Latest guidance on Fair Value
• Calculation of amortised cost

Day Two

Presentation and Disclosures
• Reminder of the basics
• Consequential amendments to IFRS 7 in IFRS 9
• Recent amendments to IFRS 7
• Case study on disclosures – identifying changes

Embedded Derivatives
• Examples of common embedded derivatives
• Old guidance
• What has changed

Transitional Arrangements
• Definition of “Date of Transition”
• Exceptions to be aware of
• Practical application
• Early vs. standard adoption date

Future Developments
• Hedging
• Impairment testing
• Liabilities
• Project timelines

Hedge Accounting Demystified
• Why hedge?
• Products used for hedging
• How does the accounting change?
• Hedge models
• Hedging instruments
• Hedged items
• Documentation
• Effectiveness testing
• Worked examples
• Common mistakes
• Best practice

*Teaching Method
Practical exercises to provide hands-on learning experience

Facilitators

Rajesh Megchiani, Senior Manager, KPMG Advisory

Rajesh Megchiani is a Senior Manager in KPMG’s Advisory team based in Auckland. He is a treasury specialist with a deep understanding of the practical implications of financial instruments accounting standards in both the financial and non-financial services sector. Rajesh has worked on a wide variety of treasury and financial risk related projects for financial institutions and major entities in New Zealand. He has extensive experience advising businesses on complex financial instruments accounting and the application of hedge accounting.

Rajesh has presented on the application of IAS 32, IAS 39 and IFRS 7 to major entities in New Zealand, the Middle East and in Canada.



Jonathan Williams, KPMG

CO-PRESENTING IN WELLINGTON:

Jonathan works in KPMG’s Financial Risk Management team.  He specialises  in accounting for financial instruments and structured transactions, regulatory issues for financial institutions, and management of risk within treasury functions.

He worked in the Global Transaction Advisory Group at the Royal Bank of Scotland in London prior to joining KPMG in New Zealand.  At RBS he provided accounting and regulatory capital advice for securitisation, structured credit, structured finance, equity finance, real estate finance, private equity, and funds management transactions.

Jonathan has extensive working knowledge of accounting for financial instruments, in particular classification, measurement, and derecognition issues surrounding complex financial arrangements, as well as consolidation issues involving special purpose vehicles and investments in associates and joint ventures. 



Lajos Csordas, KPMG

CO-PRESENTING IN AUCKLAND:

Lajos Csordas is a Manager in KPMG’s Advisory team based in Auckland. He is specialised in financial instrument accounting under International Financial Reporting Standards and undertaking risk reviews of treasury functions. Lajos has worked on a wide variety of treasury and financial risk related projects for financial institutions and major entities in New Zealand and Hungary. He has an excellent understanding of treasury products, from vanilla products to more complex structures. Lajos combines detailed knowledge of NZ IFRS reporting requirements, financial instrument product knowledge and regulatory requirements to deliver pragmatic and effective accounting outcomes for clients.



In-house Training