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Accounting for Financial Instruments (AFI)

Course Overview

“AFI” is designed to give participants a thorough understanding of international accounting principles and standards for financial markets products and their impact on the organisation’s profit and loss statement and the balance sheet.

Course Objectives

  • participants will be exposed to appropriate accounting treatment of assets & liabilities and transparent disclosure of income or losses in line with international best practices and standards
  • they will be able to interpret and implement new operational guidelines and accounting requirements to ensure appropriate representation of assets and liabilities on banks’ balance sheets
  • participants will be able to address various challenges the Nigerian financial markets may present

Duration – 4 Days

Curriculum

Treasury Operations
Interface with CBN, FMDQ, NIBSS & CSCS, Daily Confirmation Process, Customer Transaction Flow (All Products), Withholding Tax on Time Deposit

Classification of Financial Instruments
Trading, Available-for-Sale (AFS), Held-to-Maturity (HTM), Loans & Receivables, Financial Liabilities (Premium & Discount)

Accounting for Financial Markets Products
Bonds- Government & Corporate Bonds, Treasury Bills (T.bills), Inter-bank Takings & Placements, Foreign Exchange Transactions, Trading, AFS & HTM

Understanding fair value accounting as an exception to classic historical cost accounting rule

Amortised Cost

Effective Interest Rate for AFS/HTM

Accounting Entries
Purchase (AFS & HTM), Sale (AFS) & Reclassification, HFT (Trading)

Risk Management Support Process
Mark-To-Market, Rate Reasonability Concepts, Compliance with Limits

Corrective Action Process
CPs & BAs, Control Gap Analysis, Repo & Reverse Repo, Corrective Action Plan, Centralised Business Issues Log, Monitoring & Reporting