Expected Credit Losses under Ind AS

 

 

Summary

 

Programme objectives

 

  • What is ECL
  • How is it measured for retail loan portfolio
  • What are EAD, LGD and PD and how are they quantified
  • What are the areas where management judgement is required and how could that be applied with being ad hoc
  • How are corporate loan ECLs measured
  • How are revolving loans ECL measured
  • Impact of macroeconomic factors on ECL
  • Impact of sectoral factors on the ECL
  • Impact of specific factors linked to heterogeneity of loans on the ECL
  • Practical caselets will be provided on which participants can work out the ECL based on loan performance
  • Differences between NPA measurement as per current practice will be demonstrated with the ECL framework
  • Participants will be encouraged to participate in workshop mode so that the understanding of ECL is disseminated at a practical level

Target audience

 

  • Senior management (BFSI segment) who are ultimately responsible for the ECL numbers that are reported in the financial statements
  • Accounting professionals who are expected to quantify ECL
  • Risk management professionals who are expected to closely work with accounting numbers in the new framework
  • Audit and compliance professionals who are required to verify whether these ECL numbers are true and fair
  • Equity and debt analysts whose clients may be BFSI players - to understand the impact on their financials and hence their borrowing capacity

Course Structure

 

Duration: 1 Day

 

Session 1

  • Background and computational introduction to ECL
  • EAD – determination

Session 2

  • Working on Caselet
  • Determination of PD

Session 3

  • Working on Caselet
  • Determination of LGD
  • Determination of ECL

Session 4

  • Corporate ECL
  • Credit rating and LGD
  • Basel norms
  • Macroeconomic factors
  • Sectoral factors
  • Management Judgement in the determination of ECL

Trainer Profile

 

He is a financial consultant and a rank holder Chartered Accountant. He is associated as Adjunct Faculty with S P Jain Institute of Management & Research, which ranks among India’s top ten business schools. His areas of work are Ind AS Implementation, fair valuation of derivatives in the course of Ind AS implementation (including valuation of convertible bonds, convertible preference shares, cross currency swaps, principal only swaps, interest rate swaps, exotic financial products, futures, forwards, options and complex embedded derivatives). He also provides intensive advice on hedging, hedge accounting, hedge effectiveness testing and documentation. He is a regular trainer in the areas of Ind AS, IFRS, US GAAP, derivative trading, derivatives accounting and hedge accounting and has trained more than 300,000 participants over the last 20 years. 

 

Training dates - June 25, 2024

Training fees - ₹20,000 + applicable taxes