Training Resources for:
IFRS for Banks: A Credit Perspective
Total 2 record(s) available.
IFRS for Banks: A Credit Perspective Workshop Participants will be equipped to:
Understand the principles and measures of IFRS accounting and the differences from key national GAAP standards
Evaluate the impact of the changes on the key financial ratios and income statement and balance sheet items
Recognise any discrepancies between the new accounting treatment, Basel II standards and bank risk management practices
Anticipate changes in corporate strategy and business practices as a result of the accounting changes
Target Audience
Credit risk management, fixed income and banking professionals, who seek an analytic perspective on the impact of changing standards on bank performance indicators. The workshop assumes a good understanding of existing bank accounting and analytic ratios.
FitchTraining offers programmes at an intermediate level and advanced level of continuing education. Although no prerequisite courses or experience is required to participate in this programme, working knowledge of financial statement analysis is required, as well as prior knowledge of the programme topic.
Content
OVERVIEW
Key objectives - principles and scope of IFRS accounting
Core issues - principles versus rules approach, fair value, substance over form, definitions of asset and liability
Fair presentation rules - override of local tax, regulatory, dividend and pension rules
BUSINESS RISK
Loan quality
Cost plus impairments or fair value option for loan books
Redefining impaired loans - NPV of expected cash flows < book value
Impairment provisions IFRS incurred versus Basel II expected losses; incurred but not reported (IBNR) losses. individual versus collective provisions
Key performance indicators - loan quality and reserve adequacy
Derivatives and trading risk
Trading portfolio - key criteria for trading assets
Fair value measurement of stand alone derivatives; treatment of netting
Embedded derivatives - mortgages with prepayment options, hybrid debt instruments
Hedge accounting - criteria to qualify as a cash flow or fair value hedge; hedge effectiveness testing
Macro hedging - EU carve out, fair value option and other approaches to solve macro hedging challenge;
Key performance indicators - main ratios affected by derivative accounting changes
Investments and other assets
Investments held for sale and investments held to maturity; impairment accounting
Consolidation - definitions of a subsidiary (economic versus legal control); criteria for off balance sheet treatment of an SPE
Goodwill - purchase accounting for all business combinations; goodwill impairment tests instead of amortisation
Analytic impact
Players most impacted by changes
How to analyse improved disclosure of asset and loan values
Key asset quality, earnings and capital ratios impacted by the changes
PERFORMANCE RISK
Quality and stability of income
Revenue recognition - effective interest methodology and impact of accruing for interest on non performing loans;
Revenue recognition - amortisation of fees
Cost control - provisioning requirements on loans and impairment on other assets
Cost control - impact of hidden employee costs - stock options and pensions
Key performance indicators - alternatives to Net interest margin and ROA
Analytic impact
Players most impacted by changes
Key ratios impacted - revenue and expenses
FINANCIAL RISK
Funding stability and capital adequacy
Sources of funding - classification of banking and insurance liabilities
Securitisation - de-recognition (off balance sheet treatment) requirements for special purpose entities; on balance sheet treatment of securitisation vehicles
Capital adequacy - impact of fair value and impairment adjustments on tier one and tier two capital; classification of hybrid debt instruments; rating agency definitions of core capital
Basel II capital adequacy calculations - link between accounting and regulatory treatment
Off balance sheet obligations - pensions and other commitments
Analytic impact
Players most impacted by changes
Key ratios impacted - leverage and capital adequacy
CASE APPLICATION
Review of the impact of IFRS accounting on the financial analysis of a leading European bank.
A Classroom course provided by FitchTraining in Singapore, Singapore
IFRS for Banks: A Credit Perspective WorkshopA one day workshop for experienced analysts, focusing on the impact that the change to IFRS will have on the key performance indicators and analysis of Banks.
Participants will be equipped to:
Understand the principles and measures of IFRS accounting and the differences from key national GAAP standards
Evaluate the impact of the changes on the key financial ratios and income statement and balance sheet items
Recognise any discrepancies between the new accounting treatment, Basel II standards and bank risk management practices
Anticipate changes in corporate strategy and business practices as a result of the accounting changes
Target Audience
Credit risk management, fixed income and banking professionals, who seek an analytic perspective on the impact of changing standards on bank performance indicators. The workshop assumes a good understanding of existing bank accounting and analytic ratios.
FitchTraining offers programmes at an intermediate level and advanced level of continuing education. Although no prerequisite courses or experience is required to participate in this programme, working knowledge of financial statement analysis is required, as well as prior knowledge of the programme topic.
Content
OVERVIEW
Key objectives - principles and scope of IFRS accounting
Core issues - principles versus rules approach, fair value, substance over form, definitions of asset and liability
Fair presentation rules - override of local tax, regulatory, dividend and pension rules
BUSINESS RISK
Loan quality
Cost plus impairments or fair value option for loan books
Redefining impaired loans - NPV of expected cash flows < book value
Impairment provisions IFRS incurred versus Basel II expected losses; incurred but not reported (IBNR) losses. individual versus collective provisions
Key performance indicators - loan quality and reserve adequacy
Derivatives and trading risk
Trading portfolio - key criteria for trading assets
Fair value measurement of stand alone derivatives; treatment of netting
Embedded derivatives - mortgages with prepayment options, hybrid debt instruments
Hedge accounting - criteria to qualify as a cash flow or fair value hedge; hedge effectiveness testing
Macro hedging - EU carve out, fair value option and other approaches to solve macro hedging challenge;
Key performance indicators - main ratios affected by derivative accounting changes
Investments and other assets
Investments held for sale and investments held to maturity; impairment accounting
Consolidation - definitions of a subsidiary (economic versus legal control); criteria for off balance sheet treatment of an SPE
Goodwill - purchase accounting for all business combinations; goodwill impairment tests instead of amortisation
Analytic impact
Players most impacted by changes
How to analyse improved disclosure of asset and loan values
Key asset quality, earnings and capital ratios impacted by the changes
PERFORMANCE RISK
Quality and stability of income
Revenue recognition - effective interest methodology and impact of accruing for interest on non performing loans;
Revenue recognition - amortisation of fees
Cost control - provisioning requirements on loans and impairment on other assets
Cost control - impact of hidden employee costs - stock options and pensions
Key performance indicators - alternatives to Net interest margin and ROA
Analytic impact
Players most impacted by changes
Key ratios impacted - revenue and expenses
FINANCIAL RISK
Funding stability and capital adequacy
Sources of funding - classification of banking and insurance liabilities
Securitisation - de-recognition (off balance sheet treatment) requirements for special purpose entities; on balance sheet treatment of securitisation vehicles
Capital adequacy - impact of fair value and impairment adjustments on tier one and tier two capital; classification of hybrid debt instruments; rating agency definitions of core capital
Basel II capital adequacy calculations - link between accounting and regulatory treatment
Off balance sheet obligations - pensions and other commitments
Analytic impact
Players most impacted by changes
Key ratios impacted - leverage and capital adequacy
CASE APPLICATION
Review of the impact of IFRS accounting on the financial analysis of a leading European bank.
A Classroom course provided by FitchTraining in London, United Kingdom
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