FINANCIAL INSTRUMENTS: TAX & ACCOUNTING PRESENTED BY RICHARD COHEN & ANDREW WELLSTED 23 & 24 OCTOBER 2014. MELROSE ARCH HOTEL

INTRODUCTION The income tax and accounting treatment of Financial Instruments is both complex and extremely divergent. This detailed course helps you understand the two sets of regulations, and master the sources of gaps and inconsistencies between them. BENEFITS OF ATTENDING § Understand the latest changes to Tax and Accounting of

Financial Instruments § Understand the complexities of accounting for Financial

Instruments. § Understand how to apply the relevant provisions of the Income

Tax Act in practice. § Identify the range of inconsistencies between these two

frameworks. § Identify the aspects of these two frameworks that can be

aligned. § Obtain insights into the most recent interpretations on how to

apply the provisions of these two frameworks. WHO SHOULD ATTEND? This workshop is essential for: § Financial Directors § Financial Controllers § Financial Managers § Accounting Managers § Tax Managers § Treasury Staff § Deal Makers § Structured Finance Staff § Internal Auditors § External Auditors

HOT TOPICS

§ Bad debt tax deductions under IFRS 9 § Tax now follows Accounting: S24JB § New rules on debt cancellations § Preference shares and covertible loans § Dividends § New withholding taxes

REGISTER NOW ècdingle@greymatterthinking.com

 

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FINANCIAL INSTRUMENTS: Tax & Accounting 23 & 24 OCTOBER 2014. MELROSE ARCH HOTEL.

FINANCIAL INSTRUMENTS: Tax and Accounting Introduction – General What’s new, including the impact of IFRS 9 and the impact of section 24JB Introduction to financial instruments § What is a financial instrument? § Why are the accounting and tax issues so complex? § Why are the accounting and tax issues so significant? Introduction to financial instrument accounting § Introduction to IAS39 – Financial Instruments: Recognition and

Measurement § Introduction to IFRS9 – Financial Instruments § Introduction to IAS32 – Financial Instruments: Presentation § Introduction to IAS21 – The Effects of Changes in Foreign

Exchange Rates § Introduction to IFRS13 – Fair Value Measurement § Why Hedge Accounting is easier now Introduction to taxation § Background to the taxation of financial instruments § Relationship of accounting principles with tax law Interest: Tax § General tax principles of financial instruments and interest-

bearing instruments § Definition of “Instrument” § Definition of “Interest”: Statute v common law § Islamic finance § Withholding tax on interest § Section 24JB of the Act

§ Interest deductibility limitation rules – sections 23M and 23 N Interest: Accounting § What is interest? § How is interest accounted for: § Effective interest rate method § When are expenses and income items reclassified as interest? § How to compute interest for accounting purposes Bad and Doubtful Debts: tax § Tax law relating to bad debts and doubtful debts § Debt cancellation § Discharge of obligations by company through share issues Bad and Doubtful Debts: accounting § Specific impairment § Portfolio impairment § Interest on impaired loans Foreign Exchange: Tax § Foundation for the taxation of foreign exchange transactions § Realised and unrealised foreign exchange gains and losses

Foreign Exchange: Accounting § IAS21: Accounting for foreign exchange § Accounting for Forward Exchange Contracts Derivatives: Tax § Taxation rules for derivatives § Equity derivatives § Credit derivatives Derivatives: Accounting § Definition of a derivative § Accounting for derivatives § Fair value, its definition and how it is determined Focussed Financing transactions: Tax § Preference share funding § Hybrid debt § Discharge of debt § Share buy-back transactions Focussed Financing transactions: Accounting § Preference share funding § Convertible loan instruments § Forward sale agreements § Discharge of debt § Employee share schemes § Securitisation § Share buy back transactions General and specific anti-avoidance provisions and simulation § Introduction to tax avoidance § Tax evasion v. tax avoidance § The general anti-avoidance rule § Dividends in respect of borrowed shares Hybrid debt and hybrid equity instruments: Accounting Other relevant tax changes currently in the pipeline Recent relevant Supreme Court tax cases The potential tax impact of IFRS13: disclosure Conclusion REGISTER NOW ècdingle@greymatterthinking.com

 

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FINANCIAL INSTRUMENTS: Tax & Accounting 23 & 24 OCTOBER 2014. MELROSE ARCH HOTEL.

SPEAKER PROFILES ………………………………….……… PROF. RICHARD COHEN

B.com (Law), B.com (Accounting), B.com Hons (Economics), P.G.dip Acc, M.com, CA(SA), CFA

…………………………………………………………………………………………………………… PREVIOUS ROLES:

§ Managing Partner, CEO Advisory, KPMG SA § Partner, Financial Management, KPMG London § Partner, Financial Risk Management, KPMG SA; Partner,

Bank Audit, KPMG SA EXPERIENCE: Richard is the CEO of Grey Matter, a financial services business that consults to all of South Africa’s major banks and to many large Corporates on complex matters including IFRS, credit risk, bad debt and impairment accounting, valuations, derivatives, risk, Basel III, tax, internal controls, IT, and finance process re-engineering. Grey Matter Thinking’s clients include Nedbank, Absa Capital, Rand Merchant Bank, FirstRand Bank, Investec, Eskom, CFI, Liberty, Norton Rose Fulbright, Bayport Finance, Nampak, Edcon, Bowman Gilfillan, Implats, Sasria, Bell Dewar, HSBC, Ecobank, FNB, JP Morgan, Denel, PSA, and Anglo American. It also provides specialist advise to National Treasury, SARS and the Banking Council. Richard was the Managing Partner of KPMG’s CEO Advisory Practice, which provides operational and strategic advice and implementation across all sectors. Richard headed up the Financial Instruments Expert Group and led a team in specialized Financial Instrument accounting. There, his clients included JP Morgan, UBS, Barclays Capital, Societe Generale, Lloyds TSB, Investec, Nedbank, Absa, PIC, Standard Bank, South African Banking Council, and Bank of America. These services included: Process change; Finance function strategy and transformation; Risk management; Treasury consulting; Impairment (credit provisioning); Technical advice on financial instrument accounting; Process implications of accounting change; Regulatory change and the impact on finance; Process reviews; Process re-engineering – financial reporting; Conversion to IFRS Richard is a highly experienced speaker, and has provided a significant number of public presentations on a wide range of topics over the past 10 years to more than 3,000 people. He has provided presentations to the Boards of all of the 4 major South African banks on the impact of financial instrument accounting on banks. KEY SKILLS: IFRS, Financial Instrument Taxation, Banking, Financial Modelling, Valuations, Credit Risk, Basel, Financial reporting, Derivatives, Audit, Treasury, Risk, Regulatory, Internal Audit, Process analysis, improvement, Internal Controls, capital raising and venture capital.

………………………………….……… ANDREW WELLSTED

National Head of tax Johannesburg, South Africa, Norton Rose Fulbright

“Andrew Wellsted is ‘practical’, ‘commercial’ and ‘consistently delivers quality tax advice’.” Legal500, 2013.

…………………………………………………………………………………………………………… Andrew is the National Head of the tax department of NRF in South Africa. He is also a member of the firms’ specialised exchange control team. His tax experience covers a broad range of transactions relevant to the firm’s corporate client base, predominantly in the international, banking and M&A fields. In the banking and financial service industry, Andrew has significant experience in advising various financial institutions on financing transactions including project finance, structured finance and preference shares. He also has experience in product structuring in the financial services sector, including advising on the structuring derivatives and other structured products from a tax perspective. From a corporate perspective, Andrew has assisted with a number of domestic and international transactions covering both inward and outward investments, group reorganisations, and structuring mergers, acquisitions or disposals. Andrew has also assisted with a number of commodity financing transactions and has experience in dealing with the taxation of derivatives including single stock futures, contracts for difference and other derivative type contracts or products. His recent experience includes: § Advised Macquarie Security South Africa on implications of a

scrip loan transaction. § Providing the Industrial Development Corporation with an

analysis of its preference share funding structures to assist it in ensuring that it achieves its development funding objectives most efficiently.

§ Advised Rio Tinto on the restructuring of existing preference share funding arrangement.

§ Advised Barclays Bank on the reorganisation of its African subsidiaries in conjunction with Absa.

He obtained his Masters Degree (Tax) in 2002 at the University of the Witwatersrand and in 2004 he attained specialised diplomas in Capital Gains tax and Mining Tax law. Andrew is the author of numerous articles dealing with a range of exchange control and tax issues and he lectures the Capital Gains Tax module for the HDIP and masters in Tax Law course at the University of the Witwatersrand. He has successfully: § Advised clients on appropriate transaction structures which

comply with the exchange control regime in place from time-to-time.

§ Obtained approval from the financial surveillance department of the reserve Bank to (Finserv) or an authorised dealer on behalf of clients.

§ Assisted with regularising exchange control contraventions by clients, in consultation with Finserv. His experience in cross-border tax transactions ensures that he is au fait with the most novel structures, and is aware of

 

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FINANCIAL INSTRUMENTS: Tax & Accounting 23 & 24 OCTOBER 2014. MELROSE ARCH HOTEL.

the exchange control anomalies which arise from time-to-time.

COMPANY DETAILS COMPANY NAME …………………………………………………… VAT NUMBER …………………………………………………… POSTAL ADDRESS ……………………………………………………

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INVOICE FOR ATTENTION OF …………………………………………………… EMAIL ADDRESS ……………………………………………………

NAME OF AUTHORISED MANAGER FULL NAME …………………………………………………… CONTACT TEL NO. …………………………………………………… EMAIL …………………………………………………… SIGNATURE …………………………………………………… DELEGATE ONE FULL NAME …………………………………………………… DESIGNATION …………………………………………………… CONTACT TEL NO. …………………………………………………… EMAIL …………………………………………………… KOSHER…… VEGAN…… HALAAL…… VEGETARIAN…… NONE …… OTHER …………………………………………………… TWO DAY COURSE R11 499 per delegate (R10 995 early bird – 16 September 2014) 5 plus delegates – 15% group discount Number of Delegates …………………………………………………… Cost (excl VAT.) …………………………………………………… Discount (if applicable) …………………………………………………… Total Payable Amount …………………………………………………… PAYMENT METHODS EFT CHEQUE Account Name Grey Matter Payable to Grey Matter Standard Bank Acc No. 241338565 Posted to: Branch Code 018105 Postent Suite 575 Private Bag x9, Benmore,

2010 DELEGATE TWO FULL NAME …………………………………………………… DESIGNATION …………………………………………………… CONTACT TEL NO. …………………………………………………… EMAIL …………………………………………………… KOSHER…… VEGAN…… HALAAL…… VEGETARIAN…… NONE …… OTHER …………………………………………………… DELEGATE THREE FULL NAME …………………………………………………… DESIGNATION …………………………………………………… CONTACT TEL NO. …………………………………………………… EMAIL …………………………………………………… KOSHER…… VEGAN…… HALAAL…… VEGETARIAN…… NONE …… OTHER …………………………………………………… DELEGATE FOUR FULL NAME …………………………………………………… DESIGNATION …………………………………………………… CONTACT TEL NO. …………………………………………………… EMAIL …………………………………………………… KOSHER…… VEGAN…… HALAAL…… VEGETARIAN…… NONE …… OTHER …………………………………………………… For more than 4 delegates, please send through a second form. Please fax or email a scanned copy in pdf format of the completed form to 011 706 9711 or cdingle@greymatterthinikng.com CONFIRMATION AND CANCELLATION DETAILS: You will receive a confirmation letter from Grey Matter Thinking in due course. If a confirmation letter has not been received within 7 days of the event, please email cdingle@greymatterthinking.com The delegate fee includes all course materials and lunch, for courses running later than 12:00, and refreshments but excludes accommodation. Delegates unable to attend may send a substitute delegate. Please send written details of substitution. Cancellations in writing must be received more than 10 days prior to the date of the event and will be liable for 50% of the event fee. Failure to cancel, or cancellations received 10 days or less prior to the event date, will result in liability for the full event fee.