PSAK 71/IFRS 9 - Financial Instruments for Financial Services

What’s new?

From 1 January 2020, Financial Services entities will be required to adopt PSAK 71, an accounting standard which has taken a more prudent approach to impairment with the expected loss model, a business model test for classification and a relaxation of many of the prohibitively complex hedging rules from its predecessor PSAK 55. The financial services sector will see the most significant impact of the new standard. Find out why with us!

Who is it for?

This training is ideal for finance professionals in all financial services sectors, especially finance managers, heads of consolidation, financial and accounting managers involved in preparing financial statements, controllers, treasurers and financial analysts.

How do we do it?

With detailed case studies, practical insights and frequently asked questions on implementation issues, participants will get a high-level overview of what needs to be done and how to deal with the changes. A one-day training course is structured as follows:

Classification and measurements
Impairment
Transitional provision

Classification and measurements

Contractual cash flows and business model test
Solely payments of principal and interest

The classification and measurement of financial assets is now determined based on the type of asset. The holder should identify whether the asset is an equity instrument or debt instrument in the perspective of the issuer. Debt instruments will face further SPPI and business model analysis before measurement can be determined.

Impairment

Three-stage model
Probability of Default, Loss Given Default, Exposure at Default model
Stage determination (significant increase in credit risk)
Forward-looking information

The forward-looking concept will need extensive judgements in calculating impairment provision. Several considerations regarding macro-economic variables need to be considered as well as the typical risks of the balance itself.

Transitional provision

The financial statements preparer shall apply the standards retrospectively. For simplicity, the reporter may opt to use a modified retrospective approach where any impact of the initial application will be charged to beginning retained earnings on the initial application.

Slides and materials will be provided in English and the course will be delivered in Bahasa Indonesia.

Minimum participants: 20 people per session
Maximum participants: 30 people per session

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