Under the Auspices of H.E. the Governor of the Central Bank of Egypt Mr. Tarek Hassan Amer
Forum: Compliance Challenges facing the requirements of IFRS9
27-29 October 2017 – Sharm El Sheikh – Egypt
In the wake of the Global Financial Crisis 2007-2009, huge losses of various banks and its learned lessons, the G20, Investors, Organizations and the regulatory authorities called on the accounting standards developers to develop principles and standards for the loan loss provisions accounting. Accordingly, the International Accounting Standard Board issued in 2014, the final version of Standard No. 9 among the International Standards of Financial Reporting in replacement of IAS 39 Financial Instruments which adopts a new methodology for the loan loss provisions accounting based on expected losses rather than realized losses.
The Arab Banks are facing various challenges for applying the new Standard, due to be applied by January 2018, namely the challenges of the application mechanisms and its consequences.
Applying this Standard shall have significant effects upon the banks in terms of calculation of the impairment provisions and the elements of capital adequacy standard and will share in introducing wider and more comprehensive concepts in the risk management which mandates the availability of structure and sound governance measures in the banks for the sound application of the Standard concepts.
Here lies the significance of this Forum which addresses in detail the analysis of International Financial Reporting Standard No. 9, methods of the expected losses accounting and the necessary provisions thereof.
The Forum addresses the application methods, its challenges and the expected effects of the capital requirements in the banks.
OBJECTIVES OF THE FORUM
This Forum will shed light, through top notch experts in the Arab world and some of the specialized
international institutions, on the interpretation of International Financial Reporting Standard 9 and the
main challenges of its application in the banks and its expected effects, and will present the experiences
of the Arab Banks which started its application and exchange of the practical experiences for reaching the
best practices and addressing the application challenges and its effects.
The Forum aims to in-depth understanding and awareness of:
- The International Financial Reporting Standard No. 9 (IFRS9)
- The major changes in the credit risk concept.
- Development requirements of the banks infrastructure for building databases.
- The financial burdens of the Standard application.
- The effect of application upon the capital structure of the banks and capital adequacy standard.
- The banks challenges and the effects of the Standard application.
STRUCTURE OF THE FORUM
- Working papers and panel discussions presented and moderated by senior bankers and business men
thus allowing for more informative, in-depth and useful sessions.
- An exhibition for sponsoring institutions whereby the participating institutions and companies would
be able to establish and develop business ties.
TOPICS OF DISCUSSION
- The International Financial Reporting Standard 9 ‒ Concept & Development.
- Hedge accounting: the emerging changes according to Standard 9.
- Business model and financial assets classification according to Standard 9.
- The financial assets subject to impairment according to Standard 9.
- The relationship between the requirements of Basel Committee on Banking Supervision with the
requirements of the International Reporting Standards.
- Measuring of the credit risks according to the internal rating based approach IRB.
- Accounting Methods of the Expected Credit Losses (ECL).
- Bases of calculating the probability of default, point in time PD through the cycle PD.
- Estimation of the significant increase in credit losses.
- The regulatory treatment of the accounting provisions.
- Compatibility of the provisions and the capital requirements.
- The effect of Standard 9 application on the disclosure requirements.
- The application challenges in the banks:
- Amendment of the accounting systems and their linkage with the risk management system.
- Reclassification of the financial instruments.
- Enhancing the hedging strategies in the banks.
- Raising the capacities and skills of the staff to cope with the recent developments in the banking system.
- The Arab experiences and best practices for handling the application challenges.
- Chairman and General Managers of Arab banks
- Senior managers in Arab central banks
- Managers and assistant managers in the Arab supervisory & regulatory bodies
- Risk managers and their Senior Assistants
- Credit managers and their Senior Assistants
- Accounting Managers and their Senior Assistants
- Compliance Managers and their Senior Assistants
- Information Systems Managers and their Senior Assistants
- Internal Audit Managers and their Senior Assistants
- Chief Financial Supervisors and their Senior Assistants
- Debt management managers and their Senior Assistants
- Managers of finance and investment departments and their Senior Assistants