9F16CVR

IFRS 9 Impairment – In-Depth

December 13 – 14, 2016 – Toronto

IFRS 9 implementation projects are well under way as target dates for testing, parallel runs and live deployment are quickly approaching.  Many projects are discovering that implanting ECL accounting is a nuanced and highly detail driven exercise.

For companies behind in the implementation process, time is becoming critical. This in-depth, information packed conference has been designed to provide a benchmark on decisions taken to date as well as to provide critical insights to enable organizations to move forward decisively with their projects.

Register NowConference Materials

IFRS 9 implementation projects are well under way as target dates for testing, parallel runs and live deployment are quickly approaching.  Many projects are discovering that implanting ECL accounting is a nuanced and highly detail driven exercise.

For companies behind in the implementation process, time is becoming critical. This in-depth, information packed conference has been designed to provide a benchmark on decisions taken to date as well as to provide critical insights to enable organizations to move forward decisively with their projects.

  • As organizations embark on their implementation projects many new operational tasks present unprecedented challenges including:
  • Forward looking approach is incompatible with existing credit loss models
  • Inadequacy of spreadsheets to manage accounting
  • Portfolio segmentation and differing criteria for different asset classes
  • Understanding the impact on credit risk including stress testing, knowledge of current and original credit risk levels
  • How to define and measure significant deterioration in credit quality
  • Determining approaches to calculating expected credit losses
  • Allocating assets to stages and deriving historical information for disclosures
  • Establishing stage allocation and transfer criteria
  • Approaches to calculating expected credit losses

All of these issues, and more, will be addressed throughout the two days of this conference.  Banks, insurers, credit unions and government agencies overseeing financial services will obtain the most complete and current information available on IFRS 9 impairment accounting available in Canada from the foremost experts in the field.

IFRS 9 Impairment – In-Depth has been specifically designed to meet your information needs and to examine the critical aspects of the new ECL rules and provide guidance on key concepts, terminology, operational impacts and project management to assist you in your implementation planning

Registration Fees

Registration
Options
Before
November 7, 2016
Before
November 21, 2016
After
November 21, 2016
IFRS 9 Impairment - In-Depth         $2,099.00 + HST $2,199.00 + HST $2,299.00 + 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.

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 29, 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 29, 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 November 21, 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 - December 13

9:00 a.m. –  9:05 a.m.
Opening Remarks from the Chair

George Prieksaitis, Partner, Ernst & Young LLP and
Global Member of the IASB Impairment Transition Resource Group

9:05 a.m. – 10:00 a.m.
IFRS 9 Expected Credit Losses: Implementation Considerations and Comparison to BCBS Guidance 

Marc Buklis, Managing Director, PricewaterhouseCoopers LLP
Esteban Villacis, Director, Financial Services Advisory, PricewaterhouseCoopers LLP

  • Similarities and differences in concept and application between IFRS 9 and BCBS Guidance
  • Regulatory probability of default vs. IFRS 9 probability of default
  • BCBS and OSFI guidance on IFRS 9 - Current Considerations
  • IFRS 9: "Significant increase in credit risk"
  • Integrating IFRS 9 into accounting and reporting processes
  • IFRS 9 and Regulatory Capital;  Process and System  Integration Points
  • Considerations for the Impact of IFRS 9 on Capital Levels
  • Anticipated Changes to Disclosures

10:00 a.m. – 11:00 a.m.
IFRS 9 Probability of Default – Estimation and Differentiation from Basel Requirements

Mahdi Amri, Partner, Deloitte LLP
Ali Boudhina, Ph.D., Senior Manager, Deloitte LLP

  • Clarifying PD terminology
    • probability of default vs. default rate
    • point in time (PIT) vs. through the cycle (TTC) – IFRS 9 vs. regulatory accounting
    • lifetime PD vs. TTC PD
    • use of hybrid PD methodologies
  • Calibrating PD
    • understanding the nature of rating models and their objectives
    • adapting TTC or PIT models to meet specific needs
    • ensuring model validation for effectiveness before calibrating
  • Estimating lifetime PD
    • adjusting PIT PD for IFRS 9 forward-looking requirements
    • forecasting macroeconomic scenarios for long term events
    • approaches for macroeconomic adjustment of PD understanding the nature of rating models
    • and their objectives
    • developing PD term structure
  • Utilizing a simpler approach – criteria and considerations
  • Identifying what is not compliant for PD estimation
  • Applying PD concepts to examples from different portfolios/segments

11:00 a.m. – 11:15 a.m. – Morning Networking Break

11:15 a.m. – 12:30 p.m.
Estimating Credit Losses – Modelling Loss Given Default (LGD)

Sohail Farooq, Co-Founder, Nexx Consultants

  • IFRS 9 definition of “credit loss”
    • key parameters of “credit loss” under IFRS 9
    • what is “cash shortfall” and how is it to be computed?
    • is LGD equivalent to “cash shortfall”?
    • secured vs. unsecured exposures
    • credit enhancements
  • Estimating/modelling LGD
    • LGD estimation approach
      • using IRB LGD models for IFRS 9 LGD
      • differences between IRB LGD and IFRS 9 LGD estimates
  • Approaches for measuring and estimating LGD
    • Basel LGD vs. IFRS 9 LGD
    • discounting LGD using effective interest rates
  • Considerations for the development of an effective LGD model
  • Forward looking adjustments
  • Issues for larger institutions vs. smaller institutions

12:30 p.m. – 1:30 p.m.  – Luncheon

1:30 p.m. – 2:40 p.m.
Stage Assessment and Stage Migration

Abhimanyu Verma, Partner, KPMG LLP
Sandeep Patkar, Senior Manager, KPMG LLP
Raghuvir Rajagopalan, Senior Manager, KPMG LLP

  • Interpreting significant increase in credit risk
  • Assessing credit risk – required information and it sources
  • Challenges for different exposures - non-retail and retail
  • Measuring PD at origination – portfolio and segment considerations
  • Lifetime for assessing significant increase in credit risk
  • Establishing criteria for reflecting portfolio quality deterioration over time
  • Short term comparisons (e.g. rating grades, 12-month PDs) and lifetime PD comparisons
  • Defining credit deterioration triggers – what is acceptable, what do you need
  • Incorporating “expected” defaults into deterioration triggers
  • Incorporating forward looking information and integrating future looking scenarios
  • When “practical expedients” may be used
    • balancing practical expedients vs. BCBS/OSFI high quality implementation requirements
  • Balancing quantitative and qualitative thresholds in staging
  • Rebuttable presumptions and how to build them into triggers
  • Assessing assets at the individual and group level
  • Stage 1 to Stage 2 transfer
    • basing transfer criteria on Basel risk measures
    • what are optimal transfer criteria?
  • When must an asset move to Stage 3?

2:40 p.m. – 3:00 p.m. – Afternoon Networking Break

3:00 p.m. – 4:20 p.m.
Exposure at Default (EAD) Under IFRS 9

Sohail Farooq, Co-Founder, Nexx Consultants

  • EAD coverage IFRS 9 What does “lifetime” mean under IFRS 9
  • Stage determination under IFRS 9
    • Stage 2 – expected lifetime
    • Stage 3 – lifetime
  • Basel vs. IFRS 9
  • EAD – performing and non-performing accounts
  • Addressing long term maturity considerations (12 months and beyond)
  • Taxonomy of credit facilities and current industry practices
  • A survey of approaches for EAD determination
  • Approaches for calculating prepayment and credit conversion factor
  • Considerations for segmentation
  • Incorporating forward looking EAD parameters to determine Lifetime Expected Losses under IFRS 9

Program - December 14

9:00 a.m.
Opening Remarks from the Chair

George Prieksaitis, Partner, Ernst & Young LLP and
Global Member of the IASB Impairment Transition Resource Group

9:00 a.m. – 10:15 a.m.
IFRS 9 Transition - Current Issues and Hot Topics

George Prieksaitis, Partner, Ernst & Young LLP and
Global Member of the IASB Impairment Transition Resource Group

  • Examination of issues affecting Canadian financial institutions arising from ITG discussions
  • Working with the Global Public Policy Committee (GPPC) document on Implementation of IFRS 9 by Banks
  • Issues in applying the Basel Committee Consultative Paper on Guidance on Accounting for Expected Credit Losses and OSFI Guidelines on Collective Allowances
  • Review and results of EY’s September “IFRS 9 Observer” global survey
  • Current challenges in modelling expected lifetime losses
  • Pronouncements from the Financial Stability Board’s (FSB) Expanded Disclosure Task Force
  • IFRS 9 implementation plans – are you in the right place?

10:15 a.m. – 11:10 a.m.
Build vs. Buy – Implementation and Macro Forecasting Using Excel

Cayetano Gea-Carrasco, Managing Director, Moody’s Analytics

  • IFRS 9 impairment programs outlook
    • implementation progress on ECL processes
  • Challenges and lessons from organizations of different sizes
    • data, analytics/scenarios, processes and disclosure/reporting
    • governance
    • business impacts: capital, origination strategy and pricing
    • can Excel be used to manage ECL compliance – when would it be appropriate?
    • case studies of calculations and macroeconomic forecasting using an excel solution
  • Build vs. Buy
    • Moody’s experience with firms of different sizes
    • trade offs, functionality, determining what is really needed
    • best practices in achieving a common interpretation of the standard

11:10 a.m. – 11:30 a.m. – Morning Networking Break

11:30 a.m. – 12:30 p.m.
Macroeconomic Forecasts – Forward Looking and Probability Weighted

Abhimanyu Verma, Partner, KPMG LLP
Sandeep Patkar, Senior Manager, KPMG LLP
Raghuvir Rajagopalan, Senior Manager, KPMG LLP

  • Forward looking recognition of credit losses on the balance sheet
    • retail/consumer & small business
    • commercial
    • corporates and banks
  • Consideration of future stage 2 allocation
  • Quantitative evaluations and qualitative overlays
  • Macroeconomic scenarios
    • how many are appropriate
    • profiling the macroeconomic challenge
    • macro factors and credit factors to incorporate
    • multiple scenarios vs. multiple outcomes – what is required?
  • Determining an unbiased probability-weighted outcome
    • stress testing scenarios
    • probability weighted vs. deterministic
    • developing the baseline scenario – median as opposed to the mean
    • what must be considered and modelled?
    • issues for different portfolios
    • how to establish staging assessment and ECL measurement is unbiased when developing
      • Macroeconomic scenarios
      • probability weights
      • range of outcomes
  • Linking macroeconomic forecasts to PIT measures

12:30 p.m. – 1:30 p.m. – Luncheon

1:30 p.m. – 2:30 p.m.
Validation and Backtesting of IFRS 9 Models

Shawn Sampson, Senior Manager, Financial Services Risk Management Advisory,
Ernst & Young LLP

  • Backtesting requirements
  • Data
  • Identifying possible validation tests and performance metrics
  • Understanding validation of IFRS 9 models vs. IRB/AIRB models
  • Differences for wholesale/corporate vs. retail models
  • Operational challenges

2:30 p.m. – 3:20 p.m.
IFRS 9 Impairment Disclosure Including EDTF Guidelines and CSA/OSC Considerations

Eni Petrela, Ernst & Young LLP

  • New disclosures for impairment under IFRS 9
    • credit risk
    • asset quality
  • Interaction with IFRS 7 and other standards
  • EDTF final report on disclosure changes banks will need to make for ECL implementation
    • recommendations and how OSFI is responding
    • temporary considerations for transition
    • permanent considerations surviving transition
  • IASB disclosure initiative – considerations for IFRS 9 impairment disclosures
  • How new requirements create processes subject to rigors of financial reporting/disclosure
  • Implementation process and considerations
  • Transition disclosures

3:20 p.m. – 3:35 p.m. – Afternoon Networking Break

3:35 p.m. – 4:30 p.m.
IFRS 9 Expected Credit Losses – Audit Challenges

Amit Chalam, Senior Manager, KPMG LLP

  • Identification of significant risks
  • Forward-looking information requirements
    • governance over setting of assumptions
    • back testing
    • corroboration with external data
    • completeness
    • reasonable and supportable information
  • Judgmental considerations
    • range of estimation uncertainty
    • granularity of decisions
    • quality of credit risk data
    • practical expedients and accounting judgments
  • Dealing with estimates not addressed by existing auditing standards
  • Adequacy of systems and controls
  • Use of experts
  • Auditor’s involvement in implementation planning

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

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 Participants  Attending Acumen Conferences –Information You Can Work With

“…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

“…excellent breadth of coverage of a very complex series of regulations…”

Senior Treasury Analyst,
Meridian Credit Union

“…helped to clarify my understanding of requirements of ORSA…”

Risk Management Consultant,
Empire Life Company

“Well rounded. Good flow.”

Manager, Capital Risk,
RSA

“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

Limited sponsorship and exhibition options are available for this event, including

• Cocktail reception
• Luncheon sponsorship
• Breakfast sponsorship
• Booth/exhibit space

For more information, or to check availability,
please contact us by phone at (416) 504-6952
or by e-mail at  info@acumeninformation.com