Bank accounting audit

• Defining the main accounting rules defined by IFRS 9 in a bank environment.
• Understanding the accounting risks.
• Being able to propose improvements in the accounting organization.
• Being a credible partner for the financial departments of the bank.

1BANKING ENVIRONMENT

Individual and consolidated financial statements:

• Targets of the different financial statements.
• Content of the accounts.

Main principles of bank accounting:

• Amortized cost.
• Fair value.
• Impairment.

Individual and consolidated financial statements:

• Targets of the different financial statements.
• Content of the accounts.
• Targets of the different financial statements.
• Content of the accounts.

Main principles of bank accounting:

• Amortized cost.
• Fair value.
• Impairment.
• Amortized cost.
• Fair value.
• Impairment.

2PRINCIPLES OF ACCOUNTING INTERNAL CONTROL

The different levels of controls (definition and links):

1. Operational control of the accounts.
2. Permanent control.
3. Periodic control.

Definition of “account justification”.

Typology of accounts (sensitive accounts).

Accounting procedures manual.

The different levels of controls (definition and links):

1. Operational control of the accounts.
2. Permanent control.
3. Periodic control.

• Operational control of the accounts.
• Permanent control.
• Periodic control.

Definition of “account justification”.

Typology of accounts (sensitive accounts).

Accounting procedures manual.

3RETAIL AND CORPORATE BANK

Lending operations:

• Short-term loans.
• Equipment loans.
• Housing loans.
• Finance lease.

The credit risk:

• Definition of the “expected credit loss”
• The three buckets of the impairment.
• Checking the classification of assets and their impairment.

Customer accounts:

• Current accounts.
• Special savings accounts.
• Other accounts.

Suspense accounts.

Other activities:

• Tangible and intangible assets.
• Miscellaneous debtors and creditors.
• Overhead costs.

Lending operations:

• Short-term loans.
• Equipment loans.
• Housing loans.
• Finance lease.
• Short-term loans.
• Equipment loans.
• Housing loans.
• Finance lease.

The credit risk:

• Definition of the “expected credit loss”
• The three buckets of the impairment.
• Checking the classification of assets and their impairment.
• Definition of the “expected credit loss”
• The three buckets of the impairment.
• Checking the classification of assets and their impairment.

Customer accounts:

• Current accounts.
• Special savings accounts.
• Other accounts.
• Current accounts.
• Special savings accounts.
• Other accounts.

Suspense accounts.

Other activities:

• Tangible and intangible assets.
• Miscellaneous debtors and creditors.
• Overhead costs.
• Tangible and intangible assets.
• Miscellaneous debtors and creditors.
• Overhead costs.

4TREASURY

Loans and borrowings:

• Without guarantee.
• Securities sold or purchased under repurchased agreement (REPO).

Assets at amortized cost:

• Notion of business model
• “SPPI” test.

Assets at fair value through OCI (recyclable and non-recyclable)

Assets at fair value through PL:

• General rules.
• The fair value option.

Liabilities:

• Liabilities at amortized cost.
• Liabilities at fair value:
• Trading.
• Fair value option.
• The own credit risk.

Loans and borrowings:

• Without guarantee.
• Securities sold or purchased under repurchased agreement (REPO).
• Without guarantee.
• Securities sold or purchased under repurchased agreement (REPO).

Assets at amortized cost:

• Notion of business model
• “SPPI” test.
• Notion of business model
• “SPPI” test.

Assets at fair value through OCI (recyclable and non-recyclable)

Assets at fair value through PL:

• General rules.
• The fair value option.
• General rules.
• The fair value option.

Liabilities:

• Liabilities at amortized cost.
• Liabilities at fair value:
• Trading.
• Fair value option.
• The own credit risk.
• Liabilities at amortized cost.
• Liabilities at fair value:
• Trading.
• Fair value option.
• The own credit risk.
• Trading.
• Fair value option.
• The own credit risk.
• Trading.
• Fair value option.
• The own credit risk.

5DERIVATIVES

Derivatives classified as HFT.

• CVA and DVA
• Clean price vs dirty price

Conditions to classify a derivative as a hedging financial instrument.

The fair value hedge.

The cash flow hedge.

The other derivatives (briefly).

Derivatives classified as HFT.

• CVA and DVA
• Clean price vs dirty price
• CVA and DVA
• Clean price vs dirty price

Conditions to classify a derivative as a hedging financial instrument.

The fair value hedge.

The cash flow hedge.

The other derivatives (briefly).

6SYNTHESIS AND CONCLUSION

Synthesis of the three days.

Evaluation of training.

Synthesis of the three days.

Evaluation of training.