Impairment under IAS 39 – Full course exam included

Course Structure

This eLearn introduces the following topics:

• Introduction
• Expected credit loss model
• Derivatives
• Implementation issues

Should Attend

This course is intended for professionals in financial and actuarial functions within banks.

Prerequisites

There are no prerequisites to follow this eLearn

Assessment

At the end of the eLearn an exam tests your knowledge of the topics discussed during the eLearn.

Key-Features

Detailed objectives:

A) Concept of impairment under IAS 39:

• Understand the incurred loss model under IAS 39
• Realise the implications of the incurred loss model
• Identify the different steps in the impairment process

B) Objective evidence of impairment:

• Understand what is objective evidence of impairment, being step 1 in the impairment process
• Understand that there are different impairment indicators for debt and equity instruments

C) Calculate recoverable amount:

• Understand how to determine the recoverable amount, being step 2 in the impairment process
• Distinguish the different approaches for doing so, depending on the classification and measurement of the financial asset
• Understand the concept of collective provisioning

D) IAS 39 in perspective:

• Distinguish an incurred loss model from an expected loss model
• Understand the basic differences between impairment under IAS 39, compared to CRR/CRDIV (prudential reporting)
• Understand the basic differences between impairment under IAS 39, compared to IFRS 9 (the future financial instruments standard)