Coverage aspects:
− Broad overview, objectives, scope and impact areas of IND AS 109 (Financial Instruments)
− Definition of financial instrument, financial asset, financial liability and equity including when a financial liability can be offset with a financial asset
− Understand the items included and excluded from the scope of IND AS 109

Learning outcome:
− Basics of IND AS 109, what is a financial instrument and items included / excluded

Coverage aspects:
− General model for amortized cost assets under IND AS 109
− Classification & Measurement (C&M) of financial assets and liabilities
− Solely Payments of Principal and Interest (SPPI) and Business Model tests (BM) and use for final classification and accounting treatment
− C&M and BM for different types of financial instruments

Learning outcome:
− Understanding general model and C&M, SPPI and BM

Coverage aspects:
− Building blocks of Expected Credit Loss (ECL) calculation
− Introduction to general approach for ECL computation
− Understand the difference between 12 month vs lifetime ECL
− Meaning of Significant Increase in Credit Risk (SICR)
− Inception recognition of partial lifetime ECL on financial instruments measured at amortized cost

Learning outcome:
− Understanding SICR and inception recognition of ECL

Coverage aspects:
− Understand the meaning of Effective Interest Rate (EIR) and its calculation under different scenarios
− Amount to which EIR is applied under IND AS 109 subject to staging (for 1 & 2 on the gross carrying amount and for 3 on the amortized cost)
− Staging and its implication on ECL and staging criteria for various types of financial assets

Learning outcome:
− How to gauge EIR and assign staging / transition

Coverage aspects:
− Introduction to the foundation of credit risk components (vis. PD, LGD and EAD)
− Methodologies for modelling / evaluating credit risk components for assets in a sample balance sheet
− Through-the-Cycle (TTC) vs Point-in-Time (PIT) measures for credit risk
− Sample walkthrough for a few items to illustrate how PD, LGD & EAD estimates are made

Learning outcome:
− What is implied by PD / LGD / EAD and TTC / PIT measures

Coverage aspects:
− MS Excel based examples of key methodologies
− Hands-on creation of PD/ LGD models
− ECL computation and hands-on user experience

Learning outcome:
− Experience of creating IND AS 109 models