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Euromoney Learning Solutions

International Financial Reporting Standards (IFRS)

Oct 14—16
3 days
Paris, France
EUR 3995 ≈USD 4548
EUR 1331 per day
Dec 9—11
3 days
New York, New York, United States
USD 4495
USD 1498 per day

How it works

Disclaimer

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Description

Explore how to provide transparent & forthright financial reporting

The convergence, globally, of International Financial Reporting Standards (IFRS) is gaining pace at a rapid rate, for the preparation of financial statements. This includes bot large corporates and the medium sized companies. Each year more and more countries are implementing IFRS.

As a result of this acceptance of IFRS, more financial professionals are required to have a working knowledge of not only the fundamentals, but also the detailed workings. Further, the IFRS landscape is constantly changing and professionals are required to keep up to date.

This 5-day workshop will deliver update to date IFRS reporting requirements covering the standards in a practical, technical and commercial basis, with the inclusion of real life company challenges and use will be made of excel models to demonstrate many of the commercial concepts (these models will be provided as a take-away for participants).

The workshop will include the latest statements as well as projects which will be started on in the future.

On completion of the workshop, participants will be able to:

  • Apply the International Financial Reporting Standards to key elements of financial reports
  • Interpret financial statements with better understanding and with improved commercial insight
  • To prepare IFRS compliant financial statements, including group accounts

What You Get:

  • Real life examples of correct accounting and incorrect accounting treatment
  • Excel driven guidance tools for easy reference
  • Focus on certain sector area challenges
  • Meet other practitioner’s and users of IFRS financial statements

Agenda

Introduction

Introduction and Conceptual Framework

  • Background on IFRS
  • Purpose of the IASB
  • Sources of IFRS
  • Assumptions behind IFRS
  • Scope and adoption
  • Conceptual framework:
    • Recognition and initial measurement
    • Impairment and de-recognition
    • Measurement after recognition
    • Disclosures

Exercise: review how the conceptual framework has been applied to industry sectors, focusing on banking, retail, pharmaceutical, manufacturing and construction

Take-away: IFRS summary presentation and tailoring question driven by excel

Presentation of Financial statements [IAS 1]

  • Notes to the accounts – significant areas of interest for banks
  • Presentation of Financial Statements for Banks
    • Balance Sheet
    • Income Statement
    • Statement of Recognised Income and Expense
    • Cash Flow Statement

Exercise: review various IFRS financial statements and provide comments. Participants will them be provided with award winning disclosure statements in order to have a benchmark to work from

Accounting Policies, changes in Accounting estimates and Errors [IAS 8]

  • Selection and application of accounting policies
  • Consistency of accounting policies
  • Changes in accounting policies
  • Disclosures relating to changes in accounting policies
  • Changes in accounting estimates
  • Disclosures relating to changes in accounting estimates
  • Errors

Exercise: Determine the treatment of changes in accounting policies, changes in estimates and errors.

Income

Revenue from Contracts with Customers [IFRS 15]

  • Scope
  • The five-step model framework
  • Further useful implementation guidance
  • Identifying the contract
  • Performance obligations:
    • Customer control of an asset
    • Indicators of transfer of control of asset
    • Conditions for performance obligation
  • Disclosure requirements

Exercise: Different situations to be assessed to determine the appropriate accounting for arrangements with various terms and factors to consider

Take-away: The effective interest rate method model in excel

Assets

Inventories [IAS 2]

  • Scope
  • Measurement of inventories
  • Write downs and net realizable values
  • Expense recognition
  • Disclosure

Exercise: Calculate an inventory impairment, how to recognize it and the appropriate treatment of a subsequent change in value

Non-current Assets: Recognition and Measurement [IAS 16, IAS 38 and IAS 40]

Property, plant and equipment [IAS 16]

  • Measurement of the cost of an asset, including asset retirement obligations
  • Borrowing costs
  • Depreciation
  • Revaluation
  • Non-current assets held for sale

Investment property [IAS 40]

  • Definition
  • Measurement alternatives
  • Investment property transfers

Intangible assets [IAS 38]

  • Purchased intangibles
  • Acquisition as part of a business combination
  • Internally generated intangible assets
  • Measurement requirements and alternatives

Exercise: Determine and then calculate transactions relating to a construction of a new plant and establish the correct measurement and treatment

Borrowing Costs [IAS 23]

  • Recognition and measurement
  • Disclosure

Exercise: Calculate the correct borrowing costs and disclose the treatment for capitalisation of borrowing costs

Impairment of Assets [IAS36]

  • Identifying impairment indicators
  • Determining recoverable amount
  • Measuring and recognizing impairment
  • Cash generating units and impairment of goodwill

Exercise: Determine the impairment of goodwill and determine the recognition of the amount

Non-current Assets Held for Sale and Discontinued Operations [IFRS15]

  • Key provisions relating to assets held for sale
  • Held-for-sale classification
  • Held for distribution to owners classification
  • Disposal group concept
  • Measurement
  • Disclosure
  • Presentation
  • Key provisions relating to discontinued operations
  • Classification as discontinuing
  • Disclosure in the statement of comprehensive income

Exercise: Review the financial statements of companies which hold assets for sale and discontinued operations

Liabilities

Provisions, Contingent Liabilities and Contingent Assets [IAS 37]

  • Measurement of provisions using the best estimate
  • Future operating losses
  • Onerous contract
  • Measurement of provisions
  • Re-measurement of provisions
  • Restructurings
  • Use of provisions
  • Contingent liabilities
  • Contingent asset
  • Disclosure

Exercise: Review the correct disclosure of various contingent liabilities – take-and pay agreements, commitments, legal proceedings and guarantees

Share Based Payments [IFRS 2]

  • Share-based payment
  • Equity settled share-based payments
  • Cash settled share-based payment

Exercise: Identify in share-based payments, calculate the financial statement impacts and the accounting treatment

Income Taxes [IAS 12]

  • Deferred tax assets
  • Deferred tax liabilities
  • Presentation and disclosure

Exercise: Calculate deferred tax associated with various assets and liabilities

Fair Value Measurement [IFRS 13]

  • Level 1 inputs
  • Level 2 inputs
  • Level 3 inputs
  • Overview of fair value measurement approach
  • Guidance on measurement
  • Valuation techniques
  • Disclosure

Exercise: See session 8

Cash Flow Statement

Statement of Cash Flows [IAS 7]

  • Fundamental principles
  • Presentation requirements:
    • Operating activities
    • Investing activities
    • Financing activities
  • Direct versus indirect
  • Consolidation requirements

Exercise: Prepare a complete cash flow statement in terms of IFRS requirements, using the indirect method

Group Accounts

Consolidated Financial Statements [IFRS 10]

  • Identification of investment status
  • Exemptions and exclusions from the standard
  • Preparation of group accounts
  • Goodwill on acquisition
  • The fair value exercise when accounting for acquisitions
  • Differences to current Indian rules and standards

Exercise: See session 17

Joint Arrangements [IFRS 11]

  • Joint arrangements versus joint control
  • Types of joint arrangements
  • Classifying joint arrangements
  • Joint operations
  • Joint ventures
  • Separate Financial Statements
  • Disclosure

Exercise: See session 17

Disclosure of Interests in Other Entities [IAS 24 and IAS 28]

  • Associates [IAS 28]
  • Related party disclosure [IAS 24]

Exercise: Determine various entities invested in and whether, investments, associate, subsidiary or a joint arrangement and how to treat each investment

The Effects of Changes in Foreign Exchange Rates [IAS 21]

  • Foreign currency transactions
  • Translation from the functional currency to the presentation currency
  • Disposal of a foreign operation
  • Tax effects of exchange differences
  • Disclosure
  • Convenience translations
  • Exercise: Calculate the translation of financials of a foreign subsidiary to the holding company financial statements in the functional currency

First-time adoption of IFRSs

  • Scope of the standards
  • Practical considerations before the change
  • Extra reporting requirements in the changeover period
  • Opening IFRS Balance Sheet
  • Explanation of transition
  • Comparative information requirements
  • Case examples of first time financial statements under IFRS
  • Practical considerations for accountants

Exercise: Participants will be required to prepare adjustments in order to create financial statements in accordance with IFRS

Specialist Topics

Employee Benefits [IAS 19]

  • Different types of post-employment benefits
  • Defined benefit pension plan:
    • Projected benefit obligation (PBO)
    • Accumulated benefit obligation (ABO)
    • Vested benefit obligation (VBO)
  • Elements of the PBO:
    • Current service cost
    • Interest costs
    • Plan amendments
    • Expected return on planned assets
  • Assumptions and impact on PBO
  • Net pension assets or liabilities
  • IAS 19:
    • Profit-sharing and bonus payments
    • Types of post-employment benefit plans
    • Plan curtailments or settlements
    • Termination benefits
    • New rules coming in for investment return assumptions
    • Differences between funding valuation and IAS 19 valuation
  • IAS 26 - Accounting and reporting by retirement benefit plans

Exercise: Understand the components of a pension plan and determine the information to be disclosed in the financial statements

Financial Instruments [IFRS 9]

Part 1 - Classification and Measurement

  • Initial measurement of financial instruments
  • Subsequent measurement of financial assets:
    • Amortized cost
    • Fair value (FVTPL or FVTOCI)
  • Debt instruments:
    • Business model test
    • Cash flow characteristics test
  • Fair value option
  • Classifications and reclassifications
  • Subsequent measurement of financial liabilities:
    • Fair value option (FVTPL)
  • Reclassification

Part 2 – De-recognition

  • De-recognition of financial assets:
  • Cash flows identified from an asset
    • Fully proportionate share of cash flows from an assets
    • Fully proportionate share of cash flows cash flows identified from an assets
  • De-recognition of financial liabilities

Part 3 – Derivatives

  • Measurement (items linked to unquoted equity investments)
  • Fair value changes - Profit and loss or apply ‘hedge accounting’
  • Hedging considerations
  • Embedded derivatives – identification

Part 4 – Hedge Accounting

  • Qualifying criteria for hedge accounting
  • Hedging instruments
  • Hedge items
  • Hedging relationships:
    • Fair value hedge
    • Cash flow hedge
    • Hedge of a net investment in a foreign operation
  • Hedge effectiveness requirements
  • Rebalancing
  • Discontinuation
  • Foreign currency basis spreads

Part 5 – Impairment

  • Three stages
  • General approach
  • Impact of increases in credit risk
  • Credit impaired financial assets:
    • Purchased
    • Originated
  • Basis for estimating expected credit losses

Exercise: Accounting and disclosure for a variety of financial instruments

Take-away: Excel models including the valuation and accounting disclosure of the main financial instruments

Leases [IAS 16]

  • Recognition exemptions
  • Identifying a lease
  • Separating components of a contract
  • Key definitions:
    • Interest rate implicit in the lease
    • Lease term
    • Lessee’s incremental borrowing rate
  • Accounting by lessees
  • Accounting by lessors
  • Sale and leaseback transactions
  • Disclosure

Exercise: Determine the accounting and disclosure treatment of various lease transactions

Summary and Close

Who should attend

  • Financial Analysts
  • Accountants
  • Portfolio Managers
  • Securities Analysts
  • Credit / Investment Analysts
  • Pension Fund Managers
  • Auditors

Experts

Andre is a consulting trainer as well as a corporate finance practitioner and he has delivered courses around the world in the areas of Credit, Corporate Finance, Valuation and Financial Modelling both for Corporates and Banks. Andre originally qualified as a Chartered Accountant, completing arti...

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Next dates

Oct 14—16
3 days
Paris, France
EUR 3995 ≈USD 4548
EUR 1331 per day
Dec 9—11
3 days
New York, New York, United States
USD 4495
USD 1498 per day

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