2018

Oct 09 Mumbai

Implications of Ind AS on Banks and NBFCs

Training dates - October 09 & 10, 2018

Training locaton - Mumbai

Training fee - ₹40,000 + applicable taxes

 

 

Summary

Background and Objectives

 

Ind AS will bring about a major change in the financial statements of banks and financial companies. Non-performing assets are currently provisioned based on RBI rules and are driven by number of days that the assets are overdue. This is a rule based system. Ind AS envisages a look-ahead system where expected losses are determined through statistical analysis and deep management judgement on both quantum of future cash flows as well as timing. The expected credit loss (ECL) model will have substantial impact on the profit as well as the quality of the Balance Sheet. The process will be quite challenging in terms of human efforts as well as IT involvement. 

 

Another major development is development of Effective Interest Rate (EIR) mechanisms for each loan disbursed or availed. Under Indian GAAP, upfront fees and costs are either recognized in profit and loss on the day of accrual or straight lined over the tenor. Practices vary from company to company. Ind AS demands that such fees and costs be rolled into the regular interest rate to determine an EIR for each loan. This process is challenging and time consuming and requires a deep understanding of each costs, income and the loan itself. Floating interest rates pose fresh challenges in the determination of the EIR.

 

Derivatives, marking to market various positions, hedging, hedge accounting are special challenges in the financial sector.

 

These and other topics relevant to the financial sector are sought to be covered in the programme in a practical meaningful manner that will help you to implement Ind AS in your organization. 

 

The programme will benefit

 

  • Finance and Accounts Officers of Banks and NBFCS
  • Credit Officers and Credit Risk Managers
  • Financial Institutions Group at Banks
  • Investors in Financial Sector and Fixed Income Analysts