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)