International Financial Reporting Standards (IFRS)

"A great experience. This has been one of the best training courses I have attended. Very practical. I learned a lot." VP/Head, National Development Bank Plc "The training course was very useful for me especially in this transition period for our company, as we adopt IFRS." Senior Vice President/CFO, PT Danareksa (Persero) This practical 5-day course, International Financial Reporting Standards (IFRS), gives you a sound understanding of IFRS and brings you up-to-date on the latest technical updates. This course covers: The application of IFRS The framework for the preparation of financial statements in accordance with IFRS The most significant standards and interpretations that are currently applicable Fully up-to-date information that highlights the most recent and newly effective changes Expected changes to these standards in the near future Outstanding exposure drafts and discussion papers The issues involved in transitioning from GAAP to IFRS reporting Course Overview In order for today’s organisations to succeed within this volatile market, robust financial reporting is essential. Only organisations that can provide up to-date, transparent and forthright financial reporting will secure future investors and maintain the support of their shareholders and stakeholders. IFRS is therefore increasingly being adopted by global organisations as the most sophisticated and accurate means for disclosing information on financial position and performance within the market. Join this 5-day course to update your knowledge of IFRS, uncovering how you can improve your future financial reporting. The growing global acceptance of IFRS as a basis for the preparation of financial statements creates a need for an increasing group of professionals to gain knowledge and experience of these standards. Even those with a basic understanding of IFRS are required to constantly update their knowledge because of the fast evolution of these standards and the growing experience that practitioners require. Russia, China, Japan, Australia, India, Malaysia and many other countries are adopting IFRS or have plans to converge their national standards with IFRS. This course provides an answer to the continuing and growing need for information and practical guidance in relation to IFRS technical issues. Methodology The course will be structured around case studies, practical examples and exercises. Who Should Attend Accountants Financial analysts Portfolio managers Securities analysts Credit analysts Pension fund managers Auditors Investment analysts Supporting publication
Day 1 Becoming familiar with IFRS Introduction to IFRS The IASB and its IFRS Application of IFRS Current projects of the IASB Activity: Relevant internetsources for IFRS information IFRS basic principles Framework for the preparation and presentation of financial statements Financial statement elements: Assets, liabilities, equity, income and expenses Measurement and recognition principles NEW IFRS 13 fair value measurement Activity: Illustrations showing how the framework principles are applied in real-world situations Financial statements Statement of financial position Statement of comprehensive income Statement of changes in equity Statement of cash flows Upcoming changes and the financial statement project Disclosure issues Events after the reporting period Changes in accounting policies, estimates and accounting errors Related parties Discontinued operations Operating segments Activities: Review model and real life financial statements using IFRS Evaluate income statements under both the functional and nature of expense formats and cashflow statements using both the direct and indirect methods Determine the treatment of events after the reporting period Day 2 Revenue recognition and nonfinancial assets Revenue recognition from Sale of goods Services Interest, royalties and dividends Upcoming changes and the revenue recognition project Case study: Accounting for a sale of goods with a deferred payment Exercises Inventories Cost components and valuation issues Identifying and accounting for inventory impairment Case study: Inventory impairment Non-current assets: recognition and measurement Property, plant and equipment Measurement of the cost of an asset Borrowing costs Component approach Depreciation Revaluation Non-current assets held for sale issues Exercise: Cost and revaluation Revaluation over a multi-year period Example: Transactions relating to the construction and use of an oil rig Investment property Definition Measurement alternatives Investment property transfers Case study: Investment property transfers Intangible assets Purchased intangibles Acquisition as part of a business combination Internally generated intangible assets Measurement requirements and alternatives Case study: Purchased and internally generated intangible assets Impairment of assets Identifying impairment indicators Determining recoverable amount Measuring and recognising impairment Cash generating units and impairment of goodwill Case study: Impairment testing of goodwill Day 3 Non-financial liabilities and financial instruments Leases Classification of, and accounting for, lease contracts Accounting for lease contracts Operating lease incentives Upcoming changes in lease projects Case studies: Evaluate the terms of a lease and classify it correctly Determine whether a contract meets the definition of a lease and require lease accounting Examples: Accounting by the lessor and lesee for lease classification, finance and operating leases Accounting for sale and leaseback transactions Employee benefits Short-term employee benefits Pension plans, defined benefit and defined contribution plans Termination benefits Exercises: Recognition of employee benefits Case study: Pension plan Provisions, contingent liabilities and contingent assets Recognition requirements Measurement of provisions Future operating losses and onerous contracts Provisions for restructuring Contingencies Contingent liabilities acquired in a business combination Disclosures Upcoming changes and the nonfinancial liabilities project Group work: Distinguish between liabilities, provisions and contingent liablilities Determine appropriate accounting treatment and calculate the amount of provision for a variety of situations Share-based payment Equity settled share-based payments Cash settled share-based payment Exercises: Share-based payments Financial instruments Classifying financial assets Initial and subsequent measurement of financial instruments Financial asset impairment Derecognition Difference between equity and liabilities Accounting for financial liabilities Disclosure requirements NEW IFRS 9 on financial instruments Exercises and examples: accounting for a variety of financial instruments, including: Initial recognition Classification of financial assets Valuation of different classes of financial instruments Derecognition Impairment Financial liabilities vs. equity Illustrations: Reviewing real-world financial statement disclosures to understand the new financial instrument disclosure requirements Effective interest method applied to a bond Accounting for embedded derivatives Accounting for a cash flow hedge IFRS 9 Day 4 Application of IFRS for group transactions Business combinations: The acquisition method Identifying the acquirer Measuring the cost of the business combination Recognition and valuation of the acquired assets, liabilities and contingent liabilities Calculation of goodwill Changes to provisional values Case study: Business combination with contingent consideration and deferred payment Overview of consolidation requirements, associates and joint arrangements Consolidated and separate financial statements, including structured entities Determining control Summary of consolidation procedures NEW IFRS 10 consolidated financial statements NEW IFRS 12 disclosure of interests in other entities Investments in associates Determining significant influence Overview of the equity method NEW IFRS 11 joint arrangements Case studies: When should a structured entity be consolidated? Assess whether an entity controls another entity without having more than 50% of the Voting rights The equity method Foreign currency issues (FX) Foreign currency transactions Overview of foreign currency financial statement translation Exercises: Determine an entity’s functional currency Identify items resulting in FX gain or loss Calculate the FX gain or loss Discuss how the related amounts will be recognised Example: Translation of financial statements of a foreign subsidiary into the currency of the parent Day 5 Income taxes, first-time adoption of IFRS Accounting for income taxes: Current and deferred taxes Temporary differences Recognition and measurement of deferred taxes Treatment of tax loss carry-forwards and tax credits Update on the tax project Case study: Identify deferred tax Group discussion: Delegates will identify items that result in deferred tax recognition under IFRS for their companies Example: Calculation of the deferred taxes commonly associated with various assets and liabilities Overview of IFRS I first-time adoption of IFRS Basic principles of IFRS I Preparing the opening statement of financial position Mandatory exceptions from other IFRS Optional exemptions Presentation and disclosure requirements Recent and proposed changes Case study: Starting from GAAP financial statement, delegates will create the statements in accordance with IFRS