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Preparations for the organization of the «Iraq banking» in Baghdad DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Preparations for the organization of the «Iraq banking» in Baghdad

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Preparations for the organization of the «Iraq banking» in Baghdad Empty Preparations for the organization of the «Iraq banking» in Baghdad

Post by claud39 on Thu Mar 07, 2019 6:17 am


[size=36][rtl]Preparations for the organization of the «Iraq banking» in Baghdad[/rtl][/size]

Wednesday 06 March 2019

Preparations for the organization of the «Iraq banking» in Baghdad Alsabaah-7773

Baghdad / Hussein Thagb 

Preparations are underway to organize the Iraq Banking Forum at its fourth session in Baghdad on 26-27 March, under the auspices of the Central Bank of Iraq under the supervision of the International Economy and Business Group, which will address the topics that will promote the local financial sector and with the participation of elite Iraqi and Arab banking leaders , A group of experts and specialists, and officials of specialized technological companies.

Digital Banking Services

The meeting addresses several topics, the most important priorities of the Central Bank of Iraq and elements of the five-year plan 2016-2020, harmonization of monetary and financial policies, and the return of the Iraqi banking sector to the international arena, as well as digital banking services and trends of modern technology and Iraqi banks towards electronic banking services, The role of specialized technology companies and prospects for cooperation with the Iraqi banking sector ATM.POS and the evolution and expansion of payment point networks.
"Iraq is on the threshold of a period of radical political, security and economic changes that have been translated into completion of the liberation phase and the launching of reconstruction and construction workshops in parallel with the adoption by the government of a comprehensive economic plan and measures to develop the investment climate and enhance the role of the private sector to encourage," said Walid Abu Zaki. To attract new investments towards vital sectors, and the consequent need for significant financial flows. "
Application of international standards

He pointed out that "the catalysts of the organization of such meetings stems from the fact that the Central Bank of Iraq attached special importance to the need to keep pace with the application of international standards, which enhances the confidence of international banking institutions in the sector and its relationship with correspondent banks, including compliance standards, as well as international financial standards, With IFRS 9, and the need to raise the efficiency of the human resources working in the sector and to refine their expertise through training and capacity building. "
Periodic platform for interaction

Between Abu Zaki that "amid these developments, comes the Iraq Banking Forum fourth session, organized by the Economic and Business Group in cooperation with the Central Bank of Iraq and the Association of Iraqi banks private on 26-27 March, in order to create a platform for periodic interaction and dialogue and highlight the most important achievements and how Meet challenges arising from the application of international standards or the development of an appropriate local environment ".
He pointed out that "the role of the Central Bank of Iraq is prominent in seeking to keep pace with the requirements of this stage, either through the adoption of monetary policy flexible taking into account the circumstances, or by creating the appropriate environment to expand the participation of local banks in financing."
Islamic Banking Industry

Economist Haidar Kazem al-Baghdadi said: "The banking sector has a great role to be a real supporter of the development processes sought by Iraq in the coming periods. In the context of efforts aimed at developing the banking industry, the work has focused on the development of the Islamic banking industry Is important to the efforts of the Central Bank of Iraq, as well as to develop electronic banking services and digital services through the use of vital investments in the development of these channels to keep pace with global developments taking place.
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Preparations for the organization of the «Iraq banking» in Baghdad Empty BDO - IFRS IN PRACTICE 2018 / IFRS 9 Financial Instruments

Post by claud39 on Fri Mar 08, 2019 2:08 pm


BDO - IFRS IN PRACTICE 2018 / IFRS 9 Financial Instruments

1. INTRODUCTION IFRS 9 Financial Instruments1 (IFRS 9) was developed by the International Accounting Standards Board (IASB) to replace IAS 39 Financial Instruments: Recognition and Measurement (IAS 39). The IASB completed IFRS 9 in July 2014, by publishing a final standard which incorporates the requirements of all three phases of the financial instruments projects, being: – Classification and Measurement; – Impairment; and Hedge Accounting. The IAS 39 requirements related to recognition and derecognition were carried forward unchanged to IFRS 9. This IFRS in Practice sets out practical guidance and examples about the application of key aspects of IFRS 9. Key differences between IFRS 9 and IAS 39 are summarised below: Classification and measurement of financial assets IFRS 9 replaces the rules based model in IAS 39 with an approach which bases classification and measurement on the business model of an entity, and on the cash flows associated with each financial asset. This has resulted in: i. Elimination of the ‘held to maturity’, ‘loans and receivables’ and ‘available-for-sale’ categories. Instead, IFRS 9 introduces two classification categories: ‘amortised cost’ and ‘fair value through other comprehensive income’ to accompany ‘fair value through profit or loss’. ii. Elimination of the requirement to separately account for (i.e. bifurcate) embedded derivatives in financial assets. However, the concept of embedded derivatives has been retained for financial liabilities and for non-financial assets. iii. Elimination of the limited exemption to measure unquoted equity investments at cost rather than at fair value, in the rare circumstances in which the range of reasonable fair value measurements is significant and the probabilities of the various estimates cannot reasonably be assessed. Classification and measurement of financial liabilities During the development of IFRS 9, the IASB received feedback that most of the existing requirements for financial liabilities in IAS 39 worked satisfactorily. Consequently, those requirements were brought forward largely unchanged, with those instruments held for trading being measured at fair value through profit or loss and most others at amortised cost. However, in a key change for those financial liabilities designated as at fair value through profit or loss, IFRS 9 introduces a requirement for most changes in fair value related to an entity’s credit risk to be recorded in other comprehensive income and not profit or loss. This change was made to eliminate the counter intuitive effect of a decline in an entity’s creditworthiness resulting in gains being recorded in profit or loss for those liabilities. As noted above, the concept of embedded derivatives has been retained for financial liabilities and for non-financial assets. This means, for example, that certain structured debt instruments will continue to be accounted for as amortised cost host contracts with separable embedded derivatives, rather than requiring the entire debt instrument to be measured at fair value (as would be the case if embedded derivatives had been eliminated and the instrument was assessed as a single unit of account).

Impairment IFRS 9 sets out a new forward looking ‘expected loss’ impairment model which replaces the incurred loss model in IAS 39 and applies to: – Financial assets measured at amortised cost; – Debt investments measured at fair value through other comprehensive income; and – Certain loan commitments and financial guarantee contracts. Under the IFRS 9 ‘expected loss’ model, a credit event (or impairment ‘trigger’) no longer has to occur before credit losses are recognised. An entity will now always recognise (at a minimum) 12-month expected credit losses in profit or loss. Lifetime expected losses will be recognised on assets for which there is a significant increase in credit risk after initial recognition. Hedge accounting In contrast to the complex and rules based approach in IAS 39, the new hedge accounting requirements in IFRS 9 provide a better link to risk management and treasury operations and are simpler to apply. The model makes applying hedge accounting easier, allowing entities to apply hedge accounting more broadly, and reduces the extent of ‘artificial’ profit or loss volatility. Key changes introduced include: – Simplified effectiveness testing, including removal of the 80-125% highly effective threshold; – More items qualify for hedge accounting, e.g. hedging the benchmark pricing component of commodity contracts and net foreign exchange cash positions; – Entities can hedge account more effectively for exposures that give rise to two risk positions (e.g. interest rate risk and foreign exchange risk, or commodity risk and foreign exchange risk) that are managed by separate derivatives over different periods; and – Less profit or loss volatility when using options, forwards and foreign currency swaps. Effective date The effective date of IFRS 9 is for annual reporting periods beginning on or after 1 January 2018. Early adoption is permitted.

Amendments Since the issuance of IFRS 9 in July 2014, two amendments to the standard have been made. In September 2016, the IASB issued Applying IFRS 9 ‘Financial Instruments’ with IFRS 4 ‘Insurance Contracts’ (Amendments to IFRS 4) to address concerns about the different effective dates of IFRS 9 and IFRS 17 Insurance Contracts (IFRS 17). These concerns relate mainly to the potential for insurers to produce financial statements that contain two very significant changes in accounting in a short period of time, and volatility that might arise in financial statements during the period between the effective date of IFRS 9 and the new insurance standard IFRS 17, due to changes in measurement requirements. The amendments permit either the deferral of the adoption of IFRS 9 for entities whose predominant activity is issuing insurance contracts or an overlay approach which moves the additional volatility created by having non-aligned effective dates from profit or loss to other comprehensive income. An entity choosing to apply the overlay approach retrospectively to qualifying financial assets does so when it first applies IFRS 9. An entity choosing to apply the deferral approach does so for annual periods beginning on or after 1 January 2018. The second amendment was issued October 2017. The IASB issued Prepayment Features with Negative Compensation (Amendments to IFRS 9) to address the concerns about how IFRS 9 classifies particular prepayable financial assets. Prepayment Features with Negative Compensation amends the existing requirements in IFRS 9 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of negative compensation payments. Under the amendments, whether compensation on prepayment is payable or receivable by the borrower is not relevant. The calculation of this compensation payment must be the same for both the case of an early repayment penalty and the case of an early repayment gain. The amendments are to be applied retrospectively for annual periods beginning on or after 1 January 2019 with early application permitted. The final amendments also contain additional paragraphs in the Basis for Conclusions regarding the accounting for a modification or exchange of a financial liability measured at amortised cost that does not result in the derecognition of the financial liability. The additional paragraphs confirm that an entity recognises any adjustment to the amortised cost of the financial liability arising from a modification or exchange in profit or loss at the date of the modification or exchange. No change was made to any of the associated requirements in IFRS 9, meaning that the accounting approach is required to be adopted at the same point as IFRS 9, being periods beginning on or after 1 January 2018. Convergence with US GAAP The IASB’s project was initially carried out as a joint project with the US Financial Accounting Standards Board (FASB). However, the FASB ultimately decided to make more limited changes to the classification and measurement of financial instruments and the hedge accounting model, and to develop a more US specific impairment model for financial assets. The FASB’s ‘current expected credit losses’ model requires the recognition of the full amount of expected credit losses upon initial recognition of a financial asset.


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