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Basel III Capital – Regulatory Calculations and Accounting Implications 

November 21 – 22, 2016 • TBA

Basel III Capital – Regulatory Calculations and Accounting Implications – This two-day seminar will give you a deep understanding of the Basel III capital ratios framework. Two are the features that make this seminar different to other similar seminars: Firstly, it provides an understanding of the accounting treatment of the items affecting regulatory capital and, secondly, it uses real life cases to explain the complex Basel III rules.

CPE Hours: Course – 12 hours

Register NowF.I. Recognition/ImpairmentAcc’t for Derivatives

This two-day seminar will give you a deep understanding of the Basel III capital ratios framework. Two are the features that make this seminar different to other similar seminars: Firstly, it provides an understanding of the accounting treatment of the items affecting regulatory capital and, secondly, it uses real life cases to explain the complex Basel III rules.

The first day covers the components of capital and its multiple deductions (intangibles, deferred tax assets, investments in financial institutions, additional valuation adjustments and so on), with special emphasis on the accounting recognition of these items. The second day covers the calculation of risk-weighted assets for all major risks, with special emphasis on the new regulatory standards on credit, market, counterparty credit and securitizations.

Learning is based on a heavy use of real case studies that are dissected in detail to analyze their accounting and regulatory capital impacts.

Registration Fees

Registration
Options
Before
October 16,
2016
Before
October 26, 
2016
After
October 26, 2016
Basel III Capital Course $2,099.00 + HST $2,199.00 +HST $2,299.00 +
HST
Both Course & Seminar $3,099.00 + HST $3,199.00 + HST $3,299.00 +
HST
F.I. Recognition/Impairment      $1,099.00 + HST $1,149.00 + HST $1,199.00 + HST

Our HST Number: R862562543

Group Discount: Fourth Delegate FREE!

If three individuals from one organization register at the same time, a fourth person may also be registered to attend free of charge. The free registration must be of equal or lesser value than the paid registrations. Please contact us to arrange for attendance of larger groups.

Your Registration Includes

Registration fees include all conference materials, continental breakfast, lunch and refreshments. Parking and accommodation are not included.

FREE CONFERENCE WORKBOOK

As a registered delegate, you will receive a complete set of conference materials. These materials will serve as an invaluable guide, both during and after the event. The workbook will be distributed on the morning of the first day beginning at 8:00 a.m.

Supplementary Text Included in Course Fees

All participants receive a copy of  “Handbook of Basel III Capital” by Juan Ramirez.

Cancellation Policy

Substitutions may be made at any time. If you are unable to attend, please make cancellations in writing and fax to (416) 504-6978 prior to 5:00 p.m. on November 7, 2016. A credit voucher will be issued to you for the full amount, redeemable against any other Acumen conference. If you prefer, you may request for a refund of fees paid less $250 administration fee. Registrants who cancel after above date will not be eligible to receive any credits or refunds and are liable for the entire registration fees.

Confirmed delegates who do not cancel before November 7, 2016, and fail to attend will be liable for the entire registration fees.

Acumen Information Services reserves the right to change the date, location and content for the event(s) offered herein without further notice and assumes no liability for such changes.

Early Bird Registration Discount

Register prior to to October 26, 2016, and you will obtain the following additional savings:

Second delegate: $100  Discount
Third delegate: $150 Discount
Fourth delegate: FREE

Please indicate that you are eligible for this offer on the registration page or your registration form if you are mailing in your registration.

Location – Accommodation

The venue for this event is:

Courtyard by Marriott
475 Yonge Street
Toronto, Ontario
M4Y 1X7

1-800-847-5075
416-924-0611

Delegates can register at the Acumen service desk beginning at 8:00 a.m. on the morning of the first day of the conference. Registration fees do not include hotel accommodation.

 

Program - November 21

Course Agenda

Day 1 - The Numerator: Own Funds

Introduction

  • Basel III – Pillar 1, Pillar 2 and Pillar 3
  • Minimum capital requirements
  • The capital conservation buffer
  • The countercyclical buffer
  • The systemic risk buffer(s)

Components of CET1 Capital

  • Eligibility requirements
  • Major components of CET1 capital
  • Deductions from CET1 capital

Additional Tier 1 and Tier 2 Capital

  • Eligibility requirements
  • Write-down vs. convertible CoCos
  • Maximum distributable amount (MDA)
  • Case study: Deutsche Bank’s write-down CoCo

Goodwill and Intangibles

  • How is goodwill generated from an accounting perspective
  • CET1 capital and intangibles. Implications of goodwill impairments
  • Case study: capital implications of Danske Bank’s goodwill impairment charges

Minority Interests

  • How are minority interests recognised from an accounting perspective
  • Implications for CET1 capital
  • Case study: Banco Santander’s repurchase of minority interests in Santander Brasil

Investments in Capital Instruments of Financial Institutions

  • Accounting vs. regulatory consolidation
  • Treatment of insurance subsidiaries
  • Significant vs. non-significant equity investments in financial institutions
  • Worked example of calculation of investments in capital instruments of financial institutions
  • Case study: BBVA’s acquisition of Garanti. Impact on capital of changes in consolidation method

Equity Investments in Non-Financial Entities

  • Standardized approach vs. IRB approach
  • Treatment of expected losses
  • Case study: Mitsubishi UFG’s corporate equity stakes

Additional Valuation Adjustments (AVAs)

  • Accounting fair value vs. regulatory AVAs
  • EBA’s methodology for calculation of AVAs
  • Practical challenges regarding the estimation of AVAs

Other

  • Case study: Cooperative Bank’s liability management exercise
  • Cash flow hedges exclusion
  • Case study: Lloyds’ de-risking defined benefit plans

Note: The accounting considerations set out in this seminar are based on the instructor’s interpretation of
IFRS and Basel III.  Institutions that the instructor is affiliated with can therefore by no means be associated  with his interpretation

Program - November 22

Course Agenda

Day 2 - The Denominator – Risk-weighted Assets

Introduction

  • Basel III’s risk weighted assets framework
  • The upcoming agenda
  • Case study: Canadian banks regulatory capital disclosures

Credit Risk

  • Standardized Approach
  • Foundation IRB and Advanced IRB Approaches
  • Credit risk mitigation
  • Current revisions to Standardized approach
  • Link with IFRS 9’s treatment of impairment

Securitizations

  • Significant risk transfer
  • Treatment of traditional securitizations
  • Treatment of synthetic securitizations
  • Case study: Commerzbank’s synthetic securitization

Market Risk

  • Trading book vs. banking book
  • Standardized Approach
  • Model Approach
  • Fundamental review of the trading book (FRTB): Standardized vs. Internal Model Approaches

Counterparty Credit Risk (CCR)

  • Current IMM and CEM Approaches
  • New Standardized Approach
  • Cleared transactions

Operational Risk

  • Operational Risk
  • Standardized Approach
  • Advanced Measurement Approach (AMA)

This Seminar runs from 9:00 a.m. – 4:30 p.m. including lunch as well as morning and afternoon breaks.

Supplementary Text Included in Course Fees

All participants receive a copy of the upcoming book “Handbook of Basel III Capital” by Juan Ramirez

Note: The accounting considerations set out in this seminar are based on the instructor’s interpretation of
IFRS and Basel III. Institutions that the instructor is affiliated to can therefore by no means be associated with his interpretation.

Ramirez 3-43
Course Leader
Juan Ramirez

Juan Ramirez is a senior professional at Deloitte in London, working on
complex IFRS accounting and Basel III capital situations.

With an MBA from University of Chicago, Mr. Ramirez moved to London to
work at JPMorgan and later Lehman Brothers, Barclays Capital, Banco
Santander and BNP Paribas. He has devoted more than 20 years to marketing
structured derivatives solutions, including commodity, credit, equity, fixed
income and FX. Since the implementation of IFRS Mr. Ramirez has witnessed
the practical accounting issues related to these markets.

Mr. Ramirez is the author of  “Accounting for Derivatives”, “Handbook of Corporate Derivatives
and Equity Capital Markets” and the upcoming “Handbook of Basel III Capital” published by
Wiley.

Who Should Attend

This conference has been specifically designed for, and in consultation with, experts in accounting for financial institutions as well as standard setters. The event has been developed with the professional responsibilities of our audience as our focus. As well, auditors, financial advisors, analysts, lawyers and other advisory professionals would benefit from staying current on the information provided at this timely event. In particular, our experience indicates that individuals in the following positions would mostly likely be in attendance:

  • Chief Financial Officers
  • Chief Risk Officers
  • Chief Compliance Officers
  • VPs, Directors and Managers
    • Finance
    • Accounting
    • Financial Reporting
    • Regulatory Compliance
  • Controllers
  • Internal Auditors
  • Audit Committee Members
  • Corporate Counsel
  • Risk Managers
  • Audit and Assurance Professionals
  • Industry Regulators and Standard Setters
  • Financial Analysts
  • Corporate and Securities Lawyers

To obtain a copy of the brochure, please send a request to the email below or click on the image of the brochure on this page.

e-mail at info@acumeninformation.com

Comments from Past Delegates to Acumen Conferences

"…provided a very good high level summary of the key impacts of IFRS to financial institutions.”

Associate Chief Accountant, Bank of Montreal

“Presentations were clear even though topics were complex.”

Chief Financial Officer, Société Générale

“Best conference I’ve ever attended.”

Senior Manager, Enterprise Hedge Accounting and Derivative Reporting, Royal Bank of Canada

“Suffice it to say that the conference delivered on my expectations…A lot has been taken away from this conference…$ well spent…”

V.P. Risk Management Advisory, New Brunswick Credit Union Stabilization Board

“Finally a course that communicates true technical knowledge”,

Director, Operations Finance NAV Canada

“This seminar was fantastic – very informative and has some extremely interesting and knowledgeable speakers.”

Manager, Corporate Accounting Brascan Power

“Great balance between theory and practical application/issues. Perfect level of detail…”

Treasury Manager CHC Helicopter Corporation
“Speakers were very knowledgeable, materials were current…examples and materials were relevant and well presented.”

Derivatives Accountant, Agrium Inc.

To submit questions to be answered at the conference, please send us an email at this address at  info@acumeninformation.com