International Financial Reporting Standards (IFRS)

5 days 7-11 May 2018, Dubai UAE £4,995.00 Download brochure Add to basket
5 days 20-24 Aug 2018, Paris France 5,595.00 + VAT* Download brochure Add to basket
5 days 26-30 Nov 2018, London UK £4,995.00 + VAT* Download brochure Add to basket

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Overview

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

Who should attend

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

    We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

    London
    Andre Lanser
    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 articles with PricewaterhouseCoopers. He started his career with a subsidiary of Commercial Union, involved in the steel manufacturing industry. His experience ranged from systems implementation, credit assessment of the highly risky construction industry customers, heading up the finance functions to successfully turning the business around and then selling the company through a trade sale. He later joined Commercial Union in the investment back-office function, reengineering the investment back office and later headed-up a team who implemented a new investment management system for both the back office and the front office.
    His commercial experience includes restructuring and turning around a Steel Manufacturing operation, consulting to a Pharmaceutical company involved in medical devices for both Government and Private Hospitals and an in depth knowledge of the citrus industry, consulting to South African Airways and extensive work at Hanover Acceptances property company, Dorrington in London.

    His career then spanned over 15 years in the Venture Capital and Private Equity arena, where he has gained a vast amount of experience in the corporate analysis and valuation field. He is a specialist in developing and training finance related courses, including corporate credit related topics, credit analysis and cash flow analysis with a special focus on the banking sector, derivatives, and financial modeling courses. His training experience spans a period of more than 15 years.

    For DCGT Andre has successfully written/delivered courses for clients such as Arrow Pharmaceutical, Shell Oil, IBM, Komercni Banka, Societe Generale, Fortis Bank, Raiffeisen Group, Islamic Development Bank, Banco Santander, Standard Bank, Westpac, Commercial Bank of Qatar, Bank of Cyprus, ING, Bank of Cyprus, Rabobank, Eurohypo, Standard Chartered, Erste Bank and numerous others throughout the globe. Specific work in the Gulf Region: Islamic Development Bank, Saudi Airline and SABIC in Saudi Arabia. Financial reporting and IFRS training to banks in the Emirates, Qatar and Kuwait, which include Noor Islamic Bank, NBK and QNB. He is a trainer for the South African market for Continuing Professional Development (CPD) in IFRS.
    Dubai
    Andre Lanser
    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 articles with PricewaterhouseCoopers. He started his career with a subsidiary of Commercial Union, involved in the steel manufacturing industry. His experience ranged from systems implementation, credit assessment of the highly risky construction industry customers, heading up the finance functions to successfully turning the business around and then selling the company through a trade sale. He later joined Commercial Union in the investment back-office function, reengineering the investment back office and later headed-up a team who implemented a new investment management system for both the back office and the front office.
    His commercial experience includes restructuring and turning around a Steel Manufacturing operation, consulting to a Pharmaceutical company involved in medical devices for both Government and Private Hospitals and an in depth knowledge of the citrus industry, consulting to South African Airways and extensive work at Hanover Acceptances property company, Dorrington in London.

    His career then spanned over 15 years in the Venture Capital and Private Equity arena, where he has gained a vast amount of experience in the corporate analysis and valuation field. He is a specialist in developing and training finance related courses, including corporate credit related topics, credit analysis and cash flow analysis with a special focus on the banking sector, derivatives, and financial modeling courses. His training experience spans a period of more than 15 years.

    For DCGT Andre has successfully written/delivered courses for clients such as Arrow Pharmaceutical, Shell Oil, IBM, Komercni Banka, Societe Generale, Fortis Bank, Raiffeisen Group, Islamic Development Bank, Banco Santander, Standard Bank, Westpac, Commercial Bank of Qatar, Bank of Cyprus, ING, Bank of Cyprus, Rabobank, Eurohypo, Standard Chartered, Erste Bank and numerous others throughout the globe. Specific work in the Gulf Region: Islamic Development Bank, Saudi Airline and SABIC in Saudi Arabia. Financial reporting and IFRS training to banks in the Emirates, Qatar and Kuwait, which include Noor Islamic Bank, NBK and QNB. He is a trainer for the South African market for Continuing Professional Development (CPD) in IFRS.
    Paris
    Andre Lanser
    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 articles with PricewaterhouseCoopers. He started his career with a subsidiary of Commercial Union, involved in the steel manufacturing industry. His experience ranged from systems implementation, credit assessment of the highly risky construction industry customers, heading up the finance functions to successfully turning the business around and then selling the company through a trade sale. He later joined Commercial Union in the investment back-office function, reengineering the investment back office and later headed-up a team who implemented a new investment management system for both the back office and the front office.
    His commercial experience includes restructuring and turning around a Steel Manufacturing operation, consulting to a Pharmaceutical company involved in medical devices for both Government and Private Hospitals and an in depth knowledge of the citrus industry, consulting to South African Airways and extensive work at Hanover Acceptances property company, Dorrington in London.

    His career then spanned over 15 years in the Venture Capital and Private Equity arena, where he has gained a vast amount of experience in the corporate analysis and valuation field. He is a specialist in developing and training finance related courses, including corporate credit related topics, credit analysis and cash flow analysis with a special focus on the banking sector, derivatives, and financial modeling courses. His training experience spans a period of more than 15 years.

    For DCGT Andre has successfully written/delivered courses for clients such as Arrow Pharmaceutical, Shell Oil, IBM, Komercni Banka, Societe Generale, Fortis Bank, Raiffeisen Group, Islamic Development Bank, Banco Santander, Standard Bank, Westpac, Commercial Bank of Qatar, Bank of Cyprus, ING, Bank of Cyprus, Rabobank, Eurohypo, Standard Chartered, Erste Bank and numerous others throughout the globe. Specific work in the Gulf Region: Islamic Development Bank, Saudi Airline and SABIC in Saudi Arabia. Financial reporting and IFRS training to banks in the Emirates, Qatar and Kuwait, which include Noor Islamic Bank, NBK and QNB. He is a trainer for the South African market for Continuing Professional Development (CPD) in IFRS.

    Venue

    Dubai

    Dubai Finance

    This programme takes place on a non-residential basis at a central 4 to 5* Dubai hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

    Paris

    Centrally located hotel in Paris

    This programme takes place on a non-residential basis at a hotel in central Paris. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

    London

    Central London Hotel Venue

    All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

    Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

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    Agenda

    Agendas are localised, please select your preferred location.

    Day 1

    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.


    Day 2

    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.


    Day 3

    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.


    Day 4

    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.


    Day 5


    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: Starting from  a national GAAP financial statement, participants will follow-through the IFRS 1 adjustments necessary to create the statement in accordance with IFRS.

    Course summary and close

    Introduction

    Session 1

    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 

    Session 2

    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

    Session 3


    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

    Session 4


    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

    Session 5


    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

    Session 6


    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

    Session 7


    Borrowing Costs [IAS 23]

    • Recognition and measurement
    • Disclosure

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

    Session 8


    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 

    Session 9


    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

    Session 10


    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

    Session 11


    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

    Session 12

     
    Income Taxes [IAS 12]

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

    Exercise: Calculate deferred tax associated with various assets and liabilities

    Session 13


    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

    Session 14


    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

    Session 15


    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

    Session 16


    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

    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

    Session 18


    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

    Session 19

    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

    Session 20


    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 

    Session 21


    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

    Session 22

    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

    Session 23

    Summary and Close

    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
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