THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
(Established under the Accountants Act, Laws of Kenya)
IFRS 9-Financial Instruments
Date: 16th April 2024
Time: 04.00pm-06.00pm
Venue: Virtual Delivery
Overview
According to IFRS 9 Financial Instruments, a financial asset or liability is recognized by a business at the time it is incorporated into the contractual terms of the instrument. The purpose of this Standard is to set forth guidelines for the financial reporting of financial assets and liabilities so that those who utilize financial statements can make informed decisions about the amounts, timing, and predictability of future cash flows from an entity.
Financial assets are classified based on their fair value through other comprehensive income (FVTOCI) or fair value through profit or loss (FVTPL), influenced by the contractual cash flow characteristics and the organization’s business model used to manage them. Financial liabilities are easier to measure than financial assets, with finance costs recorded in profit or loss based on the effective rate of interest. Derivative liabilities and trading obligations are valued at FVTPL. If a financial liability resolves an accounting mismatch, the firm may designate it to be valued at FVTPL at initial recognition.
The creditworthiness of a corporation determines the fair value of its financial liability as determined at FVTPL. A company’s fair value decreases when its creditworthiness deteriorates, while its fair value increases when creditworthiness improves. Fair value variations in a financial responsibility resulting from shifts in credit risk must be reported as other comprehensive income under IFRS 9 rather than profit or loss. If, however, there would be an increase in an accounting mismatch, then this solution is not applicable.
IFRS 9, a principles-based accounting standard, is widely adopted worldwide, including Kenya, for its comprehensive approach to financial instrument measurement and classification and will further be discussed guided by:
- Recognition
- Classifications
- Hedging
- Derecognition
- Impairment of financial assets
- Subsequent measurements
Target Audience
This webinar will be useful to all professional Accountants and those aspiring to join the profession
Continuous Professional Development Units (CPD Units):
Members of ICPAK and reciprocating professional bodies will be awarded 2 CPD Units upon successfully attending each of the sessions.
Cost:
Charges for the training will be Kes 1,000/= which will cover workshop fees, materials, and e-certificates of attendance.
Online Booking:
We call on Seminar participants to note that booking for is available only online at www.icpak.com/events and will close two hours before the training session. Delegates are reminded to note that online booking for training sessions is mandatory. This is available either online at www.icpak.com/events or on the ICPAK Live – A smart phone-based application that is available from google store.
National Industrial Training Authority (NITA) Reimbursement:
The Institute is registered as a trainer with National Industrial Training Authority. The Institute’s registration number is DIT/TRN/47. Participants who are registered levy contributors should apply to NITA for reimbursement of their fees. Please note that this is applicable for Kenyan citizens only and subject to NITA regulations. Remember that to qualify you should apply to NITA for approval prior to the date of the conference. Further details can be obtained from their website (www.nita.go.ke).
