Overview
- Understand to which financial instruments impairment applies
- Link impairment rules to classification and measurement under IAS 39
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)
At the end of the e-learning an exam tests your knowledge of the topics discussed during the e-learning.
At the end of the e-learning an exam tests your knowledge of the topics discussed during the e-learning.