THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA

(established under the Accountant Act, Laws of Kenya)

IFRS 9 Workshop

Theme: Enhancing IFRS 9 Compliance for the Banking Sector in Kenya

DATE: 8th May, 2018

                                                                                                  TIME: 8:00 am – 4:30 pm

VENUE: Hilton Hotel,Nairobi

Overview

The recent developments in the financial reporting environment call for close attention to the key areas of change in the standard setting arena. One major change which has been causing significant worry in markets across the globe is the new International Financial Reporting Standard (IFRS) number 9. The Kenyan market has not escaped the impact of the new standard either.

IFRS 9 replaces International Accounting Standard (IAS) 39. This is in respect to the methodology used in providing for uncertainties in economic benefits of financial assets, loans or debts issued by financial institutions (impairment provisions on financial instruments). The new standard is effective from 1 January 2018 and affects any financial statements prepared after the date. The implementation of the new standard took immediate effect and all affected entities are expected to prepare compliant financial reports going forward. This includes all banks and banking institutions.

The new impairment requirements in IFRS 9 are based on an Expected Credit Loss (ECL) model and replaces the IAS 39 Incurred Loss (IL) model. ECL model applies to debt instruments (such as bank deposits, loans, debt securities and trade receivables) recorded at discounted cost or at market value and recorded in the income statement through other comprehensive income, including lease receivables, contract assets, loan commitments and financial guarantee contracts that are not measured at market value through profit or loss. As a result, entities will have to recognize not only incurred credit losses but also losses that are expected to be incurred in future.

As way of responding to the existing complexity of the financial reporting arrangements which have been occasioned by the introduction of the new standard, the Institute of Certified Public Accountants of Kenya together with the Kenya Association of Bankers have organised a one-day workshop to update members on the new developments expected during the implementation of IFRS 9. This is a practical based approach which will provide implementation guidance and address any challenges faced by banks during preparation of Quarter 1 of 2018 financial reports.

 Key Topics

• The Regulator’s Perspective on the progress of IFRS 9 Implementation in Kenya; A Status update from the Central Bank of Kenya (CBK)
• Classification and Measurement of Financial Instruments under IFRS 9
• Impairment in line with IFRS 9 requirements
• Transitional requirements, disclosures under IFRS 9 and recommended reporting templates
• The Successes and Challenges in IFRS 9 implementation from a KBA member’s perspective

 Learning Objectives

The workshop intends to enhance the capacity on participants’ knowledge and professional skills on the requirements of the new IFRS 9 Standard. The session will also leave them fully equipped to meet the demands of the new standard.

Target Audience

The target groups for this workshop include Auditors, Preparers of IFRS Financial Statements, CFOs of Banking Institutions, Corporate Finance Managers and Regulators.

Charges

Charges for this forum are as provided below:

 Continuous Professional Development (CPD) Units

Members of ICPAK will earn 7 CPD points upon successful attendance. Enquiries may be directed to us via email to cliff.nyandoro@icpak.com with a copy to; memberservices@icpak.com.