Detailed Objectives

A) Case 1 - Scoping

  • Identify the account balances that would potentially be impacted by IFRS 9 
  • Recognise which subtopic of IFRS 9 (i.e. impairments or classification and measurement) is potentially relevant for each account balance and what balance sheet and income statement   volatility could be expected.


B) Case 2 – Classification & Measurement:

  • Decide on an individual assessment versus a portfolio assessment
  • Apply the BM (business model) and SPPI (solely payments of principal and interest) tests for debt instruments
  • Apply the classification and measurement assessment to equity instruments
  • Identify information sources and processes relevant for the classification and measurement assessment

C) Case 3 - Impairment

  • Identify the level at which the impairment assessment is to be performed (portfolio, sub-portfolio, instrument)
  • Identify (relevant) triggers for significant increase in credit risk
  • Identify (relevant) information for calculating ECL (expected credit losses)
  • Evaluate relevance of (new) information for IFRS 9 application