Course	IFRS 9: Financial Instruments, Expected Credit Loss & Risk-Based Reporting
Duration	05 Days
Date	August 03-07,2026
Venue	Bangkok, Thailand
Investment	1,890 USD
Email	info@bctci.com
WhatsApp	+66 94 7800 807

Course Objectives:

By the end of this course, participants will be able to:

• Understand the core principles, structure, and scope of IFRS 9 Financial Instruments.
• Classify and measure financial assets and financial liabilities correctly.
• Apply the SPPI test and business model assessment for financial assets.
• Understand amortized cost, fair value through OCI, and fair value through profit or loss.
• Develop a practical understanding of the Expected Credit Loss model.
• Distinguish between Stage 1, Stage 2, and Stage 3 credit exposures.
• Apply 12-month ECL and lifetime ECL concepts.
• Understand the role of PD, LGD, EAD, discount rate, and forward-looking information.
• Assess significant increase in credit risk.
• Understand impairment requirements for loans, receivables, guarantees, and commitments.
• Improve IFRS 9 governance, documentation, controls, and audit readiness.
• Link IFRS 9 reporting with credit risk management, provisioning, capital planning, and regulatory expectations.

Personal and Organizational Impacts

Personal Impact

Participants will be able to:

• Strengthen their technical knowledge of IFRS 9.
• Interpret financial instruments more confidently.
• Improve decision-making in credit risk, finance, audit, and treasury functions.
• Understand impairment calculations and ECL reporting.
• Communicate IFRS 9 issues clearly with auditors, regulators, and senior management.
• Identify documentation gaps in classification, measurement, and impairment.
• Build confidence in reviewing IFRS 9 models, assumptions, and disclosures.

Organizational Impact

Organizations will benefit through:

• Improved IFRS 9 compliance and reporting quality.
• Stronger credit risk governance and provisioning practices.
• Better alignment between finance, risk, credit, audit, and treasury teams.
• More reliable impairment estimates and financial statements.
• Reduced audit findings and regulatory concerns.
• Stronger internal controls around financial instruments.
• Improved board and management reporting on credit risk and expected losses.

Training Methodologies / Strategies:

The course will use a practical and interactive approach, including:

• Instructor-led technical sessions
• Practical IFRS 9 examples and illustrations
• Banking and financial institution case studies
• Group discussions and scenario analysis
• Mini exercises on classification and measurement
• ECL calculation demonstrations
• Review of sample disclosures
• Risk governance mapping exercises
• Internal audit and compliance checklists
• End-of-course practical assessment

Main Takeaways:

Participants will leave the course with a strong understanding of:

• IFRS 9 structure and key requirements
• Classification and measurement of financial assets
• Financial liability accounting under IFRS 9
• SPPI test and business model assessment
• Fair value and amortized cost measurement
• Expected Credit Loss methodology
• Stage 1, Stage 2, and Stage 3 impairment
• PD, LGD, EAD, and forward-looking assumptions
• Significant increase in credit risk
• Loan impairment and provisioning under IFRS 9
• Hedge accounting overview
• IFRS 9 disclosure expectations
• IFRS 9 governance, control, and audit readiness

Course Essentials

This course is essential for organizations that want to:

• Improve IFRS 9 implementation quality
• Strengthen impairment and provisioning processes
• Ensure accurate classification of financial instruments
• Build stronger coordination between risk and finance
• Prepare for audit, regulatory review, and board reporting
• Improve transparency in credit risk and financial reporting
• Reduce errors in financial statements and disclosures

Course Outline:

IFRS 9 Framework, Scope, Classification & Measurement

Module 1: Introduction to IFRS 9 Financial Instruments

• Overview of IFRS 9 and its purpose
• Difference between IAS 39 and IFRS 9
• Why IFRS 9 was introduced
• Key pillars of IFRS 9:
  • Classification and measurement
  • Impairment
  • Hedge accounting
• Relevance of IFRS 9 for banks and financial institutions
• IFRS 9 impact on financial statements

Practical Focus:

Participants will discuss how IFRS 9 affects lending, investment, treasury, and risk management activities.

Module 2: Scope of IFRS 9 and Financial Instruments

• What is a financial instrument?
• Financial assets
• Financial liabilities
• Equity instruments
• Loans and advances
• Trade receivables
• Debt securities
• Equity investments
• Derivatives
• Financial guarantees
• Loan commitments
• Items outside the scope of IFRS 9

Practical Focus

Participants will classify common balance sheet items into financial assets, financial liabilities, and non-financial items.

Module 3: Classification of Financial Assets

• IFRS 9 classification categories:
  • Amortized cost
  • Fair Value Through Other Comprehensive Income
  • Fair Value Through Profit or Loss
• Business model assessment
• Contractual cash flow characteristics
• Role of management intention
• Reclassification rules
• Documentation requirements

Practical Focus:

Participants will analyze sample financial assets and determine their correct classification.

Module 4: Business Model Assessment

• Hold to collect business model
• Hold to collect and sell business model
• Other business models
• Role of portfolio management
• Frequency and significance of sales
• Management reporting evidence
• Stress sales and liquidity sales
• Governance over business model documentation

Practical Focus

Participants will evaluate different loan and investment portfolios and determine the relevant business model.

Module 5: SPPI Test and Contractual Cash Flow Assessment

• Meaning of Solely Payments of Principal and Interest
• Understanding principal
• Understanding interest
• Time value of money
• Credit risk compensation
• Liquidity risk and profit margin
• Modified time value of money
• Prepayment features
• Extension options
• Non-recourse features
• Contractually linked instruments

Practical Focus

Participants will perform SPPI assessments on sample loan and investment instruments.

Measurement, Fair Value, Liabilities & Derecognition

Module 6: Amortized Cost Measurement

Key Topics

• Meaning of amortized cost
• Effective Interest Rate method
• Initial recognition
• Transaction costs
• Interest income recognition
• Premiums and discounts
• Changes in estimated cash flows
• Practical challenges in amortized cost calculation

Practical Focus

Participants will review a simple loan amortization example using the effective interest method.

Module 7: Fair Value Through OCI and Fair Value Through Profit or Loss

• FVOCI for debt instruments
• FVOCI election for equity instruments
• FVTPL classification
• Accounting treatment for fair value gains and losses
• Recycling and non-recycling of gains
• Dividend income treatment
• Implications for profit volatility
• Practical reporting considerations

Practical Focus

Participants will compare how the same investment may affect profit or loss and OCI under different classifications.

Module 8: Financial Liabilities under IFRS 9

• Classification of financial liabilities
• Amortized cost for liabilities
• Fair value option
• Own credit risk treatment
• Loan borrowings
• Deposits from customers
• Debt securities issued
• Subordinated debt
• Modification of financial liabilities

Practical Focus

Participants will analyze accounting treatment for deposits, borrowings, and issued debt instruments.

Module 9: Derivatives and Embedded Derivatives

• Definition of derivatives
• Common derivative instruments
• Forward contracts
• Options and swaps
• Embedded derivatives in host contracts
• Separation requirements
• Fair value measurement of derivatives
• Derivative risk and financial reporting impact

Practical Focus

Participants will identify embedded derivative features in selected financial contracts.

Module 10: Derecognition and Modification of Financial Instruments

• Derecognition of financial assets
• Transfer of risks and rewards
• Continuing involvement
• Write-off of financial assets
• Loan restructuring
• Modification gain or loss
• Derecognition of financial liabilities
• Difference between modification and extinguishment

Practical Focus

Participants will review loan restructuring scenarios and determine the accounting treatment.

Expected Credit Loss Model and Impairment Framework

Module 11: Introduction to IFRS 9 Expected Credit Loss

• From incurred loss to expected loss
• Purpose of the ECL model
• Scope of impairment requirements
• Financial assets subject to impairment
• Loan commitments
• Financial guarantee contracts
• Lease receivables
• Trade receivables
• Contract assets
• Importance of forward-looking information

Practical Focus

Participants will compare IAS 39 incurred loss with IFRS 9 expected credit loss.

Module 12: Three-Stage Impairment Model

• Stage 1: Performing assets
• Stage 2: Underperforming assets
• Stage 3: Credit-impaired assets
• 12-month ECL
• Lifetime ECL
• Interest revenue treatment by stage
• Movement between stages
• Cure period considerations
• Watchlist and restructuring indicators

Practical Focus

Participants will classify loan accounts into Stage 1, Stage 2, and Stage 3 based on given risk indicators.

Module 13: Significant Increase in Credit Risk

• Definition of significant increase in credit risk
• Quantitative indicators
• Qualitative indicators
• Days past due criteria
• Watchlist status
• Forbearance and restructuring
• Credit rating downgrade
• Macroeconomic deterioration
• Low credit risk exemption
• Backstop indicators

Practical Focus

Participants will develop a practical SICR assessment checklist for a bank loan portfolio.

Module 14: Credit-Impaired Financial Assets and Default Definition

• Meaning of credit-impaired asset
• Objective evidence of impairment
• Default definition
• Non-performing loans
• Bankruptcy and financial difficulty
• Breach of contract
• Restructuring due to borrower distress
• Collateral realization issues
• Write-off policy
• Alignment with regulatory classification

Practical Focus

Participants will identify credit-impaired assets from borrower case scenarios.

Module 15: ECL Components: PD, LGD, EAD and Discounting

• Probability of Default
• Loss Given Default
• Exposure at Default
• Effective interest rate discounting
• 12-month PD vs lifetime PD
• Marginal PD and cumulative PD
• Collateral impact on LGD
• Undrawn commitments and credit conversion factors
• Data requirements
• Model governance expectations

Practical Focus

Participants will walk through a simplified ECL calculation using PD, LGD, and EAD.

ECL Modelling, Forward-Looking Information, Governance & Controls

Module 16: Forward-Looking Information and Macroeconomic Scenarios

• Role of macroeconomic information
• Base, upside, and downside scenarios
• Probability weighting
• GDP, inflation, interest rate, unemployment, exchange rate
• Sector outlook and borrower vulnerability
• Management overlays
• Scenario governance
• Documentation of assumptions

Practical Focus

Participants will design a simple macroeconomic scenario framework for ECL estimation.

Module 17: ECL Methodologies for Different Portfolios

• Corporate loan portfolios
• SME loans
• Retail loans
• Mortgage loans
• Credit cards
• Sovereign exposures
• Interbank placements
• Debt securities
• Trade receivables
• Simplified approach for receivables

Practical Focus

Participants will match ECL methodologies to different asset classes and portfolios.

Module 18: Data Quality and IFRS 9 Model Governance

• Importance of data quality
• Historical default data
• Recovery data
• Collateral data
• Customer rating data
• Data gaps and limitations
• Model development governance
• Model validation
• Independent review
• Change control process

Practical Focus

Participants will assess data weaknesses that may affect ECL reliability.

Module 19: Internal Controls over IFRS 9

• Roles of finance, risk, credit, treasury, and audit
• Control environment for IFRS 9
• Approval of assumptions
• Reconciliation controls
• Manual adjustment controls
• Management overlay controls
• Model access control
• Review and approval process
• Evidence and documentation
• Control testing by internal audit

Practical Focus

Participants will build an IFRS 9 internal control checklist.

Module 20: IFRS 9 Audit and Regulatory Review Readiness

• Common audit focus areas
• Common regulatory concerns
• Documentation expected by auditors
• Model validation evidence
• Staging evidence
• SICR evidence
• ECL assumption support
• Board and committee approvals
• Common IFRS 9 findings
• Remediation action planning

Practical Focus

Participants will review a mock IFRS 9 audit finding and develop corrective actions.

Hedge Accounting, Disclosure, Reporting & Practical Application

Module 21: Hedge Accounting Overview under IFRS 9

• Purpose of hedge accounting
• Risk management alignment
• Fair value hedge
• Cash flow hedge
• Net investment hedge
• Hedging instruments
• Hedged items
• Hedge effectiveness
• Hedge documentation
• Difference from IAS 39 hedge accounting

Practical Focus

Participants will discuss how treasury risk management links with hedge accounting.

Module 22: IFRS 9 Presentation and Disclosures

• Financial instruments disclosure expectations
• Credit risk disclosures
• ECL movement tables
• Risk concentration disclosure
• Collateral disclosure
• Sensitivity analysis
• Fair value hierarchy
• Liquidity risk disclosure
• Market risk disclosure
• Management judgment disclosure

Practical Focus

Participants will review sample IFRS 9 disclosure notes and identify strengths and weaknesses.

Module 23: IFRS 9 Impact on Banks and Financial Institutions

• Impact on loan loss provisions
• Impact on profitability
• Impact on capital adequacy
• Link with credit risk management
• Link with Basel principles
• Impact on pricing and lending decisions
• Portfolio monitoring
• Early warning indicators
• Board-level reporting
• Strategic implications for banks

Practical Focus

Participants will analyze how IFRS 9 changes management decision-making in a financial institution.

Module 24: Practical IFRS 9 Implementation Challenges

• Common implementation errors
• Weak business model documentation
• Incorrect SPPI conclusions
• Poor staging governance
• Incomplete macroeconomic assumptions
• Over-reliance on manual spreadsheets
• Lack of model validation
• Poor communication between departments
• Audit delays
• Capacity-building needs

Practical Focus

Participants will create an IFRS 9 improvement roadmap for their organization.

Module 25: Final Case Study and Action Planning

• Classification and measurement case study
• SPPI test exercise
• Business model assessment
• Staging assessment
• ECL calculation review
• Disclosure review
• Internal control assessment
• Governance improvement plan
• Management reporting recommendations
• Individual action planning