Financial Instruments

Throughout this session we will be going through the main principles and requirements emerging from IFRS 9 Financial Instruments. IFRS 9 includes revised guidance on the classification and measurement of financial instruments. The implementation of a business model approach and the Solely Payments of Principal and Interest (SPPI) criterion requires judgment to ensure that financial assets are classified into the appropriate category. Deciding whether the SPPI criterion is met will require assessment of contractual provisions that do or may change the timing or amount of contractual cashflows. Moreover, IFRS 9 also introduced the expected credit loss model for the recognition and measurement of impairment on financial assets, which addresses the concerns about ‘too little, too late’ provisioning under the old standard and accelerates the recognition of losses by requiring provisions to cover both already-incurred losses and some losses expected in the future. However, the calculation of expected credit losses can be complex and requires time, effort and the availability of granular data. In this session we will also delve into the disclosure requirements emanating from IFRS 7 Financial Instrument Disclosures.

By the end of the session participants would be knowledgeable on the requirements of IFRS 9, including approaches adopted in practice in calculating expected credit losses under the new impairment model.

The Speaker

Emerson Zammit joined KPMG during 2018 after completing the Master in Accountancy Degree at the University of Malta. Emerson holds the role of an assistant manager within the firm’s Accounting Advisory Services team and has assisted a wide range of clients across different industries with complex financial reporting matters and other tailor-made solutions in compliance with IFRS. Emerson delivers technical training to both local and international clients on specific financial reporting matters.