Training Course: Financial Instruments Accounting and Sustainability Reporting for Central Banks

Introduction

In a rapidly evolving global financial landscape, central banks are expected to uphold the highest standards of transparency, accountability, and sustainability. Effective financial reporting and sustainability-related disclosures are crucial for maintaining trust and demonstrating compliance with international standards. This 10-day training course is meticulously designed to equip participants with the necessary skills to apply international accounting standards in financial instruments accounting and sustainability/climate-related reporting for central banks.

Course Objectives

By the end of this course, participants will be able to:

• Understand the principles of classification and measurement for financial assets and liabilities in the context of central bank operations.
• Apply the impairment requirements for financial assets, including expected credit loss models under IFRS 9.
• Comprehend the accounting treatment of derivatives used in monetary policy and foreign exchange management.
• Understand the concepts of repurchase agreements (repos) and reverse repos, and their impact on central bank balance sheets.
• Prepare financial reports related to financial instruments in accordance with IFRS 7.
• Gain a conceptual understanding of IFRS S1 principles for sustainability-related financial disclosures.
• Identify sustainability-related risks and opportunities relevant to central banking mandates.
• Understand the specific climate-related disclosure requirements outlined in IFRS S2.
• Assess the impact of climate-related risks on a central bank's financial position.
• Use sustainability-related disclosures to enhance transparency and accountability in central banking reporting.

Course Outlines

Day 1: Classification and Measurement of Financial Instruments

• Introduction to IFRS 9
• Classification of financial assets and liabilities
• Measurement principles: Amortized Cost, Fair Value Through Other Comprehensive Income (OCI), and Fair Value Through Profit or Loss (FVTPL)

Day 2: Impairment Requirements for Financial Assets

• Theoretical basis of impairment
• Differentiating between 12-month expected credit losses and lifetime expected credit losses
• Key considerations for central banks in financial reporting

Day 3: Accounting for Derivatives

• The role of derivatives in monetary policy and foreign exchange (FX) management
• Accounting principles under IFRS 9 and IFRS 7
• Overview of hedge accounting and its implications for risk management

Day 4: Repurchase Agreements (Repos) and Reverse Repos

• Concept and structure of repos and reverse repos
• Recognition, measurement, and derecognition principles
• Impact on central bank balance sheets and financial disclosures

Day 5: Financial Reporting and Disclosures

• Core financial reporting requirements for financial instruments
• Disclosures required under IFRS 7
• Importance of consistency and transparency in central bank financial statements

Day 6: Introduction to IFRS S1

• Overview of the IFRS S1 framework
• Purpose and guiding principles of sustainability-related financial disclosures
• Importance of information connectivity in sustainability reporting

Day 7: Identifying Sustainability-Related Risks and Opportunities

• Definition and types of ESG-related risks and opportunities
• Relevance to central bank strategy and oversight
• Integration of sustainability considerations into risk management

Day 8: IFRS S2 – Climate-Related Disclosures

• Structure and components of IFRS S2
• The four key pillars: Governance, Strategy, Risk Management, and Metrics
• Integration with other disclosure requirements in sustainability reporting

Day 9: Financial Impact of Climate Risks

• Financial implications of climate-related exposures
• Assessing how climate risk affects central bank financial statements
• Implementing climate resilience strategies in financial planning

Day 10: Disclosure for Transparency and Accountability

• Enhancing stakeholder communication through transparent disclosures
• Ensuring consistency and comparability in financial reports
• Final summary and key takeaways, highlighting the role of transparency in central bank governance

Why Attend this Course: Wins & Losses!

• Master International Standards: Gain expertise in IFRS 9, IFRS S1, and IFRS S2, ensuring full compliance with global best practices.
• Enhance Financial Reporting Skills: Learn to classify, measure, and report financial instruments accurately.
• Boost Sustainability Reporting: Understand sustainability-related disclosures to improve transparency and accountability.
• Prepare for Climate-Related Risks: Equip yourself with the skills to assess climate risks and their financial impact.
• Increase Organizational Trust: Develop clear and consistent financial reports that enhance stakeholder confidence.

Conclusion

By the end of this course, participants will be equipped with the skills and knowledge to apply international accounting standards effectively in financial instruments accounting and sustainability-related disclosures. They will be prepared to lead initiatives that enhance transparency, accountability, and sustainability in central banking operations, ensuring compliance with global reporting standards and fostering long-term financial stability.

Join this course to master financial instruments accounting, enhance your expertise in sustainability reporting, and drive impactful change in central banking governance.