Introduction

In today's evolving financial landscape, aligning with International Financial Reporting Standards (IFRS) is no longer optional—it's a strategic necessity. IFRS 9 Compliance & Loan Loss Provisioning is a transformative course designed for financial professionals looking to master the intricacies of credit risk, expected credit loss modeling, and regulatory compliance. As financial institutions face increased scrutiny globally and across Africa, understanding IFRS 9 standards has become crucial in minimizing financial reporting risks and enhancing decision-making.

This course provides a comprehensive guide to the classification and measurement of financial instruments, impairment methodologies, and hedge accounting in line with IFRS 9. With a focus on practical implementation, it equips participants with the tools to enhance financial transparency, manage loan loss provisions accurately, and improve risk governance frameworks. The course is tailored to meet the needs of banks, microfinance institutions, SACCOs, fintechs, and corporate lenders operating in diverse regulatory environments.

Africa's dynamic financial services industry is rapidly integrating international standards to attract investors, strengthen internal controls, and build sustainable economies. This IFRS 9 training is particularly crucial for regional and multinational organizations seeking to boost their compliance frameworks and stay competitive in today’s global market. Whether your focus is on accounting, audit, credit risk, or regulatory compliance, this course provides critical skills for growth and compliance.

By participating in this course, finance professionals not only enhance their technical expertise but also increase their organization’s capacity to comply with IFRS 9. The course goes beyond theory, offering real-world case studies, Excel modeling templates, and tools necessary for accurate implementation of expected credit loss calculations and provisioning requirements. Stay ahead of regulatory requirements and become an IFRS 9 champion in your organization.

Course Objectives

1.     Understand the key principles, scope, and application of IFRS 9.

2.     Learn how to classify and measure financial instruments under IFRS 9.

3.     Master the impairment model and calculate Expected Credit Loss (ECL).

4.     Apply forward-looking macroeconomic indicators to loan loss provisioning.

5.     Understand and implement Staging Criteria: Stage 1, Stage 2, and Stage 3 assets.

6.     Use practical templates for ECL modeling and scenario analysis.

7.     Analyze the impact of IFRS 9 on financial reporting and capital requirements.

8.     Enhance internal control and governance mechanisms for IFRS 9 compliance.

9.     Evaluate the transition from IAS 39 to IFRS 9 and associated challenges.

10.  Align credit risk strategies with regulatory expectations and global best practices.

Organizational Benefits

1.     Strengthen IFRS 9 compliance across all financial reporting operations.

2.     Reduce audit risk through enhanced understanding of ECL methodologies.

3.     Improve transparency and investor confidence through quality reporting.

4.     Build capacity to manage loan loss provisions and capital adequacy ratios.

5.     Enable effective use of data analytics in credit risk forecasting.

6.     Promote consistent risk classification and loan monitoring practices.

7.     Enhance collaboration between finance, risk, and audit departments.

8.     Mitigate financial misstatements and regulatory penalties.

9.     Equip teams with cutting-edge tools for macroeconomic scenario modeling.

10.  Gain competitive advantage through superior financial governance.

Target Participants

·        Chief Financial Officers (CFOs)

·        Finance and Accounting Managers

·        Risk and Compliance Officers

·        Internal and External Auditors

·        Credit and Loan Officers

·        Asset and Liability Managers

·        Investment Analysts

·        Banking and Microfinance Executives

·        Financial Regulators and Policy Advisors

·        Finance Consultants and IFRS Trainers

Course Outline

Module 1: IFRS 9 Overview and Transition from IAS 39

1.     Evolution of IFRS standards

2.     Key differences between IAS 39 and IFRS 9

3.     Overview of IFRS 9 objectives and structure

4.     Global and African adoption of IFRS 9

5.     Regulatory expectations and audit implications

6.     Case study: Transition challenges in a Kenyan commercial bank

Module 2: Classification and Measurement of Financial Instruments

1.     Financial assets and liabilities under IFRS 9

2.     Business model assessment

3.     Contractual cash flow characteristics test

4.     Amortized cost, FVOCI, and FVTPL explained

5.     Classification implications on profit and loss

6.     Case study: South African investment firm asset classification

Module 3: Expected Credit Loss (ECL) Framework

1.     Introduction to ECL model under IFRS 9

2.     12-month ECL vs. Lifetime ECL

3.     Probability of Default (PD) estimation

4.     Loss Given Default (LGD) and Exposure at Default (EAD)

5.     Discounting future cash flows

6.     Case study: Nigerian microfinance institution ECL model design

Module 4: Staging of Financial Assets

1.     Understanding Stages 1, 2, and 3

2.     Significant Increase in Credit Risk (SICR)

3.     Movement between stages and implications

4.     Overlays and judgmental adjustments

5.     Early warning indicators for stage movement

6.     Case study: Ghanaian SACCO loan staging challenges

Module 5: Macroeconomic Forecasting and Scenarios

1.     Integrating forward-looking information

2.     Modeling multiple scenarios

3.     Use of external economic data and forecasts

4.     Weighting scenarios and probability assignment

5.     Managing uncertainty and stress testing

6.     Case study: East African bank scenario-based ECL provisioning

Module 6: Governance and Internal Controls

1.     IFRS 9 implementation governance structures

2.     Role of Board, Audit, and Risk Committees

3.     Internal controls and model validation

4.     Documentation standards and audit trails

5.     Periodic back-testing and model review

6.     Case study: Compliance governance in a pan-African bank

Module 7: IFRS 9 and Financial Reporting

1.     IFRS 9 disclosures in financial statements

2.     Reconciliation of opening balances

3.     Presentation of gains/losses under IFRS 9

4.     Notes to the financials: Required disclosures

5.     Transition adjustments and accounting policies

6.     Case study: Publicly listed bank IFRS 9 disclosure

Module 8: System Requirements and Data Management

1.     Data quality and completeness

2.     Systems integration and ERP considerations

3.     Use of Excel vs. IFRS 9 software solutions

4.     Historical data requirements

5.     Credit risk data governance

6.     Case study: Mid-sized African bank system upgrade

Module 9: IFRS 9 for Microfinance and SACCOs

1.     Tailoring IFRS 9 for small financial institutions

2.     Simplified ECL models for microloans

3.     Managing group lending and short-tenure loans

4.     Cash flow projections and risk categorization

5.     Regulator support and transition reliefs

6.     Case study: SACCO IFRS 9 implementation in Uganda

Module 10: Audit and Assurance on IFRS 9

1.     External audit expectations

2.     Common audit findings and red flags

3.     Preparing audit trails and work papers

4.     Communication with auditors and stakeholders

5.     Model audit and independent review process

6.     Case study: Internal audit challenges in IFRS 9 rollout

Module 11: Regulatory Compliance and Capital Implications

1.     Basel III and IFRS 9 interaction

2.     Impact on regulatory capital and provisioning

3.     Central bank reporting requirements

4.     IFRS 9 stress testing and ICAAP

5.     Managing prudential and accounting differences

6.     Case study: IFRS 9 capital management in West Africa

Module 12: Post-Implementation Review and Continuous Improvement

1.     Updating models and assumptions periodically

2.     Lessons learned from initial implementation

3.     Stakeholder feedback integration

4.     Ongoing training and capacity building

5.     Enhancing automation and efficiency

6.     Case study: IFRS 9 improvement journey of an African fintech

Case Studies Included

1.     IFRS 9 implementation in a Kenyan Tier 1 bank

2.     Scenario-based ECL modeling in a Nigerian MFI

3.     Transition from IAS 39 in a South African insurance group

4.     Stage movement challenges in a Ghanaian credit union

5.     System and data challenges in an Ethiopian development bank

6.     Post-implementation audit review in a Tanzanian commercial bank

Essential Information

 

1. Our courses are customizable to suit the specific needs of participants.
2. Participants are required to have proficiency in the English language.
3. Our training sessions feature comprehensive guidance through presentations, practical exercises, web-based tutorials, and collaborative group activities. Our facilitators boast extensive expertise, each with over a decade of experience.
4. Upon fulfilling the training requirements, participants will receive a prestigious Global King Project Management certificate.
5. Training sessions are conducted at various Global King Project Management Centers, including locations in Nairobi, Mombasa, Kigali, Dubai, Lagos, and others.
6. Organizations sending more than two participants from the same entity are eligible for a generous 20% discount.
7. The duration of our courses is adaptable, and the curriculum can be adjusted to accommodate any number of days.
8. To ensure seamless preparation, payment is expected before the commencement of training, facilitated through the Global King Project Management account.
9. For inquiries, reach out to us via email at training@globalkingprojectmanagement.org or by phone at +254 114 830 889.
10. Additional amenities such as tablets and laptops are available upon request for an extra fee. The course fee for onsite training covers facilitation, training materials, two coffee breaks, a buffet lunch, and a certificate of successful completion. Participants are responsible for arranging and covering their travel expenses, including airport transfers, visa applications, dinners, health insurance, and any other personal expenses.