A comprehensive 4-day course for banking experts that will help you to:
- Understand the principles of IFRS accounting
- Identify the most important performance ratios
- Analyse the P/L, margin, and trading income
- Forecast provisions for the different asset classes
- Apply the balance sheet analysis with fair value and accrued income accounting
- Understand the new equity rules under Basel III
- Use derivative and hedge accounting
- Assess the liquidity situation and calculate the new liquidity ratios
- Understand the importance of mismatches
The global financial crisis, the collapse of major financial institutions and an unprecedented volatility in the credit and financial markets have highlighted the importance of bank balance sheet analysis.
This course provides a comprehensive overview of the most important trends and developments in bank reporting.
The programme starts with an introduction to the key principles of IAS/ IFRS accounting principles and policies; the major disclosure requirements and most recent developments will be discussed. The difference between book valuation, accrual accounting and the fair value methodology will be described.
In the second part, an in depth understanding of the asset side of the balance sheet will be developed. Particular emphasis will be laid on the treatment of financial instruments, securities, loans and hedge accounting. Delegates will learn how to apply and forecast the credit cycle and the related provisions for credit losses.
The discussion of the liability side will focus the accounting principles regarding long- term liabilities, derivatives and the different equity positions under the new Basel III guidelines. The difference between nominal shareholder funds, regulatory and economic equity will be explained and key items as “Revaluation reserves” are interpreted.
On the third day, the major elements of the P& L statement are introduced with a particular emphasize on interest income, understanding gap analysis and mismatches, forecasting fee income. Delegates will learn how to treat trading income and forecast appropriate provision levels for the different asset classes. The different expense categories will be described. Finally, the cash flow statement will be developed out of the operating, non- operating income and the changes in assets and liabilities.
On the last day, delegates will translate their accounting knowledge into financial ratio analysis in order to assess the strength and weaknesses of a financial institution. They will apply their knowledge to the principal valuation techniques for banks
The programme Features
- The course applies to professionals and managers who are involved in the accounting, controlling or analysis of financial statements of banks.
- They are introduced to the latest developments in accounting and representing financial statements in accordance with IFRS principles.
- The key issues of valuing financial assets and liabilities, loans, derivatives and hedges are discussed in examples.
- A particular emphasis is given to the new Basel III equity requirements.
- The methodologies of book accounting and fair value principle are explained.
- The key value drivers for banks are highlighted and transformed in valuation methodologies for financial institutions.
- Participants will learn to apply various methodologies of valuing banks, understand their different results and their successful application to real life situations.