Overview

  • Understand the importance of the concept of derecognition of financial instruments for banks
  • Recognise for which balance sheet line items is the concept of derecognition of financial instruments applicable

 

Detailed Objectives


A) Derecognition:

  1. Liabilites
  2. Assets – decision tree
  • Distinguish between the derecognition of financial liabilities and financial assets
  • Understand the assessment for derecognition of financial liabilities
  • Critically evaluate the different steps of the derecognition decision tree for financial assets
  • Understand the assessment of derecognition for financial assets
 

B) Consolidation

  • Understand the IFRS principle for consolidating entities within a group as provided in IFRS 10
  • Understand the specialised case of agent v.s. principle as part of the assessment
  • Obtain basic understanding of why the concept of consolidation is closely related to the concept of derecognition of financial instruments


 

C) Specialized topics:

  1. Secruitisation
  2. Factoring
  • Gain better understanding of the relationship between consolidation and derecognition and how this assessment can be applied in the case of structuring of so called structured entities
  • Obtain understanding of the assessment of structuring products
  • Obtain understanding of applying the concept of derecognition in the case of factoring transaction