International Financial Reporting Standards (IFRS) (Update)
Course Schedule
International Financial Reporting Standards (IFRS) (Update)
The
growing global acceptance of International Financial Reporting Standards (IFRS)
as a basis for the preparation of financial statements of large and medium
sized entities 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. As of 2005 approximately 9000 listed
European companies transferred to IFRS reporting. Russia, China, Canada, Japan,
Australia, India, South Korea, Malaysia and many other countries are adopting
IFRS or have plans to converge their national standards with IFRS.
This course you
will learn how to provide up-to-date, transparent and forthright financial
reporting. IFRS is changing rapidly and it is important for those using the
international standards to remain abreast of changes. This course provides a
valuable technical update as it not only covers current accounting guidance,
but includes information on newly issued standards and upcoming projects.
·
Introduction to IFRS
·
IFRS basic principles
·
Financial statement presentation
·
Disclosure issues
·
Revenue recognition and non-financial assets
·
Non-current assets: recognition and
measurement
·
Impairment of assets
·
Non-financial liabilities and financial
instruments
·
Financial instruments
·
Business combinations: application of the
acquisition method
·
Foreign currency issues
·
Accounting for income taxes: current and
deferred taxes
·
Overview of IFRS I first-time adoption of
IFRS
Becoming
familiar with IFRS as basis for the preparation of financial statements
Introduction to IFRS
- The
IASB and its IFRS
- Application
of IFRS
- Update
on current projects of the IASB
Activity: To identify and review relevant internet
sources to keep up to date with IFRS.
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 (including discussion of fair value accounting)
Activity: Practice with illustrations
showing how the Framework principles are applied in real-world situations.
Financial statement
presentation
- Statement
of Financial Position
- Statement
of Comprehensive Income
- Statement
of Changes in Equity
- Statement
of Cash Flows: choice between direct and indirect method
Disclosure issues
- Events
after the reporting period
- Changes
in accounting policies, estimates and accounting errors
- Related
parties
- Discontinued
operations
- Operating
segments
Activity: Use real-world and model financial
statements to review the new disclosure and presentation requirements of IFRS.
Evaluate financial statement items and alternative presentations. Determine the
treatment of events after the reporting period.
Revenue recognition and
non-financial assets
- Sale
of goods
- Services
- Interest,
royalties and dividends
Case study: The effective interest rate method is
illustrated through the accounting for a sale of goods with a deferred payment.
Exercise: Numerous scenarios are
evaluated to determine the appropriate accounting for arrangements with various
terms and factors to consider.
Inventories
- Cost
components and valuation issues
- Identifying
and accounting for inventory impairment
Case study: Evaluate a situation to determine whether
an inventory impairment should be recognised and the appropriate treatment of a
subsequent change in value.
Non-current assets:
recognition and measurement
- Property,
plant and equipment
- Measurement
of the cost of an asset, including asset retirement obligations
- Borrowing
costs
- Component
approach
- DepreciatioN
- Revaluation
- Non-current
assets held for sale issues
Class practice: Cost and revaluation.
Determine the appropriate accounting for revaluation over a multi-year period.
Example: All relevant transactions
relating to the construction and use of an oil rig (site preparation,
acquisition, environmental obligations) are treated.
- Investment
property
- Definition
- Measurement
alternatives
- investment
property transfers
Case study: Identify the correct dates
and valuations relating to investment property transfers and costs.
- Intangible
assets
- Purchased
intangibles
- Acquisition
as part of a business combination
- Internally
generated intangible assets
- Measurement
requirements and alternatives
Case study: Determine the appropriate accounting
treatment of purchased and internally generated intangible assets.
Impairment of assets
- Identifying
impairment indicators
- Determining
recoverable amount
- Measuring
and recognizing impairment
- Cash
generating units and impairment of goodwill
Case study: Evaluate the impairment
testing of goodwill and determine whether impairment should be recognized and
the assets that are potentially affected.
Non-financial liabilities
and financial instruments
- Leases
- Classification
of lease contracts
- Accounting
for lease contracts
- Operating
lease incentives
Case studies: Apply your knowledge of lease
contracts to evaluate the terms of a lease and classify it as a finance or
operating lease. Review contractual arrangements to determine whether they meet
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: Decide under various
circumstances whether and when an employee benefit should be recognized.
Case study: Review the various components of a
pension plan and trace relevant information to the amounts recognized on the
financial statements.
- 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
Group work: Distinguish between liabilities, provisions
and contingent liabilities. Apply recognition and measurement concepts to
determine appropriate accounting treatment for a variety of situations.
Calculate the correct amount of provision to recognize in various situations.
- Share-based
payment
- Equity
settled share-based payments
- Cash
settled share-based payment
Exercises: Identify the pertinent facts
in share-based payment scenarios, determine the financial statement impacts and
contrast the accounting treatment of share options and share appreciation
rights.
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 classifying and measuring 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
- Differentiating
between financial liabilities and equity
Illustrations: Gain familiarity with the new financial
instrument disclosure requirements by reviewing real-world financial statement
disclosures. Review the calculation and use of the effective interest method
applied to a bond. Evaluate the separating conditions and accounting
requirements for embedded derivatives; examine the accounting transactions for
a cash flow hedge. Overview of IFRS 9 and the new classification and
measurement requirements.
Application
of IFRS for group transactions
Business combinations:
application of 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 or gain from a bargain purchase
- Changes
to provisional values
Case study: Account for a business
combination in which the consideration is contingent and for which the payment
is deferred.
Overview of consolidation requirements, associates and joint
arrangements
Consolidated and separate financial statements (including
structured entities)
- Determining
control
- Summary
of consolidation procedure
- Investments
in associates
- Determining
significant influence
- Overview
of the equity method
- Interests
in joint arrangements
- Joint
ventures
- Joint
operations
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. Application of the equity
method
Foreign currency issues
- Foreign
currency transactions
- Overview
of foreign currency financial statement translation
Exercises: Determine an entity’s functional
currency. Identify items resulting in foreign exchange gain or loss. Calculate
the foreign exchange gain or loss resulting from amounts payable and receivable
in foreign currencies and discuss how the related amounts will be recognized on
the financial statements.
Example: Review the translation of
financial statements of a foreign subsidiary to financial statements in the
functional currency of the parent.
Income taxes, first-time adoption of IFRS
Accounting for income
taxes: current and deferred taxes
- Temporary
and other differences
- Recognition
and measurement of deferred taxes
- Treatment
of tax loss carry-forwards and tax credits
Case study: Evaluate a variety of situations to
identify deferred tax implications.
Group discussion: Based on their individual country’s tax
codes, participants will identify items that result in deferred tax recognition
under IFRS for their organizations.
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
Case study
Course summary and close
· Financial Analysts
·
Accountants
·
Portfolio Managers
·
Securities Analysts
·
Credit / Investment
Analysts
·
Pension Fund Managers
·
Auditors
Sub Code | FA067 |
Start Date | Sun,Dec,11,2022 |
End Date | Thu,Dec,15,2022 |
Duration | 5 Days |
Fee(US$) | 1950 |
Location | Riyadh |
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