Prudential Asset Classification and Provisioning and the IFRS

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Course title: Prudential Asset Classification and Provisioning and the IFRS (PACP).
Presented by the Monetary and Capital Markets Department.
Explains aspects of, and issues related to, asset classification and provisioning from both the prudential regulatory perspective and the perspective of accounting/IFRS.
Explores the role of the supervisor in reconciling differences between the prudential and accounting perspectives.
Covers loan loss provisioning principles and the requirements of the Basel Committee on Banking Supervision (BCBS).
Discusses IFRS 9’s expected credit loss (ECL) recognition principles and related IFRS requirements.
Tackles IFRS 9 implementation issues, including those related to the impact of COVID-19.

Target audience:
- Bank supervisors and officials responsible for loas loss provisioning and managing credit risk in countries that have adopted International Financial Reporting Standards (IFRS) or are planning to do so.
Qualifications:
- Participants are expected to have a degree in economics or finance, or equivalent experience.

Upon completion of the course, participants should be able to:

Understand the IFRS and principles and rules related to credit loss recognition and disclosures and the difference between the accounting and regulatory approaches.
Meet supervisory challenges in helping banks to implement IFRS 9’s ECL requirements as well as balancing the accounting and regulatory requirements in asset classification and provisioning.
Recognize major international developments (e.g., BCBS decisions) that affect the application of IFRS 9 and understand their implications.

Uses case studies and hands-on exercises to enhance effectiveness.
Participants are invited (and should be prepared) to share their own experiences and views on this topic.