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Description

Banking Book and Trading Book: Classifying, Accounting for and Justifying Transactions

Account for a transaction according to the intention with which it is held, and be able to defend that classification

  • 2 days — 14 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

The same transaction can follow two very different accounting treatments depending on the portfolio to which it is allocated. The split between the banking book and the trading book determines measurement, income recognition and the disclosures to be produced. Business teams know their products, but not always the accounting consequences of the stated holding intention.

This short-format programme sets the accounting treatment of banking transactions alongside that of market activities. It clarifies classification criteria, the measurement methods attached to each portfolio and the evidence expected during controls and audits, in line with IFRS requirements and supervisory expectations applicable in the UAE.

Learning objectives

  • Distinguish the banking book from the trading book according to the holding intention
  • Allocate a transaction to the appropriate portfolio and document that classification
  • Apply the measurement methods specific to each portfolio
  • Analyse the effects of a classification on the income statement
  • Justify an accounting treatment during an internal or external review

What makes this programme different

Each type of transaction is followed from initial classification through to its effect on profit or loss
Transfers between portfolios and the conditions attached to them are addressed explicitly
The supporting documents expected to evidence a classification are listed precisely

Programme

1Two Accounting Logics

The holding intention drives the treatment

  • Purpose of the banking book and of the trading book
  • Criteria for classifying a transaction at inception
  • Documenting the holding intention
  • Consequences of classification for measurement and for profit or loss

2Accounting for Banking Transactions

Loans, deposits and commitments

  • Recording customer loans and deposits
  • Spreading interest, fees and transaction costs over time
  • Treatment of off-balance-sheet commitments
  • Impairment and provisioning for credit risk

3Accounting for Market Activities

Measurement, results and evidence

  • Measuring positions and recognising changes in value
  • Treatment of derivative instruments and hedging transactions
  • Conditions for and effects of a transfer between portfolios
  • Expected controls and supporting documents to be produced

Who is it for

Accountants and heads of accounting in banking institutions, together with management controllers, internal auditors and finance department staff.

Prerequisites

A working knowledge of banking accounting and of financial instrument terminology.

Dates & locations

36 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.