Modelling and Accounting for Credit Risk under IFRS 9

“IFRS 9 is based on the concept that financial assets should be classified and measured at fair value, with changes in fair value recognized in profit and loss as they arise (“FVPL”), unless restrictive criteria are met for classifying and measuring the asset at either Amortized Cost or Fair Value Through Other Comprehensive
Income (“FVOCI”).
One of the major elements of the change for banks is that they now need to assess the lifetime loss expectation rather than just the previous one-year view.
This results in incorporation of forward-looking guidance and the development of appropriate models. Model validation consequently becomes of even greater importance.
This course looks at the key issues concerning credit risk provisioning and IFRS 9 and considers the management approach to be taken within a bank.”