Objective

The treatment of financial instruments within the IAS/IFRS accounting framework is of particular interest for banking supervisors, who are not generally trained as accountants. The financial crisis revealed a particular weakness in banking supervision in this area. The course will cover both the old and new standards and their implications for banking supervisors. Participants in this course will gain an insight into the general construction of the most common financial instruments, with particular emphasis on how they are combined to create more advanced forms of financial investments. The seminar will also examine the risk structure of financial instruments and its impact on accounting treatment. The latest IFRS developments bring accounting regulations into line with the requirements of Basel II and III. Particular attention will be given to the “three bucket approach” for the treatment of loans.

Content

• Forms and risk structure of financial instruments as currently traded across the world
• Accounting treatment according to IAS 32 and 39 (the “old world”)
• Accounting treatment according to IFRS 9 (the “new world”)
• The “three bucket approach” of IFRS 9 and models to calculate the necessary probabilities of default

Target group

Mid to senior-level banking supervisors from central banks and supervisory authorities.

Please note:

A nomination is required in order to participate in our in-person courses.