Euromoney Audit Training

Course Overview

Transitioning to the International Financial Reporting Standards (IFRS) is a significant change that will impact an entity's financial statement policies, disclosures, formats, and reported amounts. This program will enable participants to understand the technical transition requirements, planning and work that must be undertaken in the process of adopting IFRS. The program begins with an overview of IFRS, focusing on the accounting pronouncements that are most significant to entities in the transition process. Following is a thorough review of IFRS 1 First-time Adoption of International Financial Reporting Standards. IFRS 1 sets transition adjustment, reconcilement and disclosure requirements, as well as establishing mandatory exceptions and elective exemptions that may be applied when adopting IFRS. The final portion of this information-packed workshop covers the transition process itself, providing suggestions and guidance based on international best practices. All three components of the program are structured to create a unified framework for IFRS transition and are presented in a manner that interrelates each area.

On completion of this 3-day course you will:

• Understand IFRS financial statement requirements
• Apply the requirements of IFRS 1
• Comply with the rules relating to first-time adoption of IFRS
• Discern the costs and benefits of various courses of action
• Discuss practical strategies to manage the transition to IFRS
• Determine system modifications and other changes required to implement IFRS
• Gain the understanding required to develop an effective implementation plan

Who should attend this course?

• Auditors
• Accountants
• Financial Analysts
• Portfolio Managers
• Information Technology staff
• Credit / Investment Analysts
• Pension Fund Managers
• Investor Relations Managers
• Transition Team Members

Day 1
 
IFRS OVERVIEW
• IFRS Financial Statements
• Presentation – IAS 1
• Non-current assets held for sale and discontinued operations – IFRS 5
• Statement of cash flows – IAS 7
• Accounting policies, changes in accounting estimates and errors – IAS 8
• Events after the reporting period – IAS 10
• Related party disclosures – IAS 24
• Segment reporting – IFRS


CASE STUDIES and EXAMPLES:
• Real World Financial Statement Reviews
• Statement of Cash Flows Preparation
• Segment Reporting Illustrations
• Determining the Treatment of Events after the Reporting Period Assets
• Property, plant and equipment – IAS 16
• Borrowing costs – IAS 23
• Intangible assets – IAS 38
• Investment property – IAS 40
• Inventories – IAS 2
• Leases – IAS 17
• Impairment of assets – IAS 36


CASE STUDIES and EXAMPLES:
• Property Plant and Equipment Asset Retirement Obligations
• Intangible Assets – Recognition, Measurement, and Subsequent
• Expenditures
• Investment Property – Recognition, Valuation and Changes in Use
• Identifying, Classifying and Accounting for Leases
• Impairment Testing Liabilities
• Provisions, contingent liabilities and contingent assets – IAS 37
• Employee benefits – IAS 19
• Share-based payment – IFRS 2
• Income taxes – IAS 12


CASE STUDIES and EXAMPLES:
• Identifying, Recognizing, and Measuring Provisions
• Employee Benefits
• Accounting for Equity-settled Share-based Payment, Accounting for Cash-settled Share-based Payment
• Identifying Income Tax Temporary Differences
 
Day 2


IFRS OVERVIEW
• Financial Instruments
• Financial assets and liabilities – IAS 39 and IAS 32
• Financial instrument disclosures – IFRS 7


CASE STUDIES and EXAMPLES:
• Financial Instruments Classification
• Liabilities vs. Equity
• De-recognition
• Impairment
• Applying the Effective Interest Method Revenue – IAS 18


CASE STUDIES and EXAMPLES:
• Revenue Recognition and Application Foreign Currency – IAS 21
CASE STUDIES and EXAMPLES:


• Determining Functional Currency
• Identifying Monetary Items
• Measuring and Recognizing Exchange Gains and Losses
• Translating Foreign Entity Financial Statements


Consolidations, Associates & Joint Ventures
• Consolidated and separate financial statements – IAS 27
• Investments in associates – IAS 28
• Interests in joint ventures – IAS 31


CASE STUDIES and EXAMPLES:
• Special Purpose Entity Consolidation
• Calculating Equity Method Balances


Future Developments
• Convergence projects and global accounting convergence
• Current Exposure Drafts
• Other IASB projects and work agenda


On-line resource review – website sources that provide access to IFRS accounting updates and self-education materials UNDERSTANDING and APPLYING IFRS TECHNICAL TRANSITION REQUIREMENTS


General Principles of IFRS 1 First-time Adoption of International Financial Reporting Standards
• Recognition & measurement
• Opening IFRS balance sheet
– Recognizing assets and liabilities
– Derecognizing financial items
– Reclassifying balance sheet items
– Re-measuring
• Retrospective approach and exceptions
 
Day 3
 
UNDERSTANDING and APPLYING IFRS TECHNICAL TRANSITION REQUIREMENTS Understanding and applying optional exemptions
• Business combinations
• Fair value or revaluation as deemed cost
• Employee benefits
• Cumulative translation differences
• Compound financial instruments
• Investments in subsidiaries, jointly controlled entities and associates at deemed cost
• Assets and liabilities of subsidiaries, associates and joint ventures
• Designation of previously recognized financial instruments
• Share-based payment transactions
• Insurance contracts
• Decommissioning liabilities included in property, plant and equipment
• Leases – rights of use
• Fair value measurement of financial assets or financial liabilities at initial recognition
• Service concession arrangements
• Borrowing costs


Group Activity
• Identify and discuss the necessary policy changes and optional exemption choices most likely to affect course participants


Presentation and Disclosure Requirements
• Reconciliations and disclosures
• Interim reporting requirements


CASE STUDIES and EXAMPLES:
• First-time Adoption of IFRS
• Real-world transition statements and disclosures
 
IMPLEMENTING THE TRANSITION PROCESS


Learning from past transitions
• Lessons learned and best practices
• Importance of keeping technically updated – IFRS is changing
 
Managing the transition process – Project planning
• Drafting a conversion plan
• Appointing a team
• Setting an overall timeline


Initial assessment phase
• Identifying key issues
• Completing technical research
• Assessing impacts
• Preparing an initial diagnostic to help set priorities
• Considering IFRS 1 elections and policy changes
• Reviewing internal communications, procedures and training needs
• Establishing a conversion budget


Planning
• Creating a detailed implementation program
• Determining resource needs
• Evaluating external assistance
• Setting a conversion timetable
• Making a plan control document
• Undergoing technical research
• Selecting policies
• Establishing communications
• Identifying system requirements
• Evaluating financial reporting impacts
• Other considerations


Training needs
• Considering areas affected
• Determining training approach

Implementation and testing
• Finalizing policies
• Operating parallel system and considerations
• Implementing systems changes
• Gathering information and calculating transition adjustments
• Documenting
• Preparing financial statements
• Reconciling
• Testing output
• Undergoing internal reports and audit
• Completing external review Closure
• Reviewing the financial statements
• Auditing
• Finishing the project review

• Karen Kalishek

  Karen Kalishek is an international instructor and consultant specialising in International Financial Reporting Standards (IFRS and US Generally Accepted Accounting Principles (US GAAP). She has delivered training courses around the world including in the USA, Europe, Russia, Asia and the Middle East. Karen has also assisted national governments and central banks in the reform of their accounting systems and in the implementation of international standards and best practices.
  
  In addition to teaching both public training programs and customised in-house courses, Karen also writes technical accounting material for publication and is a content author for IFRS and US GAAP e-learning programs.
  
  She is a US Certified Public Accountant (CPA), a Certified Management Accountant (CMA), a Certified Fraud Examiner (CFE) and earned an MBA from the University of Wisconsin. Prior to entering the international arena, she taught graduatelevel business and finance courses in the USA as well as CPA examination review courses. Karen was formerly Senior Vice-President in a regional bank holding company and also served for eight years on the accounting examination and licensing board of her state. Karen’s extensive experience and engaging teaching style have made her a popular instructor with many repeat clients.

  Courses run by this instructor

  • Applying IFRS / IAS-New York City

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

Applying IFRS / IAS-New York City

4-7 Oct 2010 (New York, United States)

A training program providing you with a complete up to date practical analysis of the complex requirements of International Financial Reporting Standards.

Corporate Governance - New York City

20-23 Sep 2010 (New York, United States)

A comprehensive 4 day program featuring: • Corporate governance principles • Legislative requirements • Integrating good corporate governance • The role of HR and IT departments • The cost of compliance • Governance in context • Corporate governance in emerging markets • How to analyze and assess corporate governance • The board's responsibilities • The role of independent and non-executive directors • Relationship with internal and external auditors, the role of the audit committee • Defining the CEO and evaluating his or her performance • The practicalities of good board governance • The requirements of shareholders; investor meetings and corporate reporting best practices • Developing an improvement plan for your own corporate governance

Back Office Management - New York City

9-12 Nov 2010 (New York, United States)
1-4 Feb 2011 (New York, United States)

This program could change your life and that of your staff. Get control of your environment, convert negative stress into positive motivation. Change problems into opportunities and create a back office team that is second to none.

The philosophy of "Management by Responsibility" uses the practice of "Enlightened Self- Interest" which will give you the opportunity to use your power to not only improve the productivity of your area and organization, but also materially improve the lives of your staff and ultimately yourself.

The systematic control and management program will enable you to gain those essential management skills which will increase control and productivity, whilst reducing costs, losses and associated stress.

Senior Management is becoming increasing aware that an effective Operations area is the key to the success of any organization. This course will help you build an effective team of highly skilled operatives, which will raise the profile and status of your operations to the level that it deserves, whilst fulfilling the ever increasing needs of the company.

Validation for Internal Auditors - New York City

13-17 Dec 2010 (New York, United States)

In this 5 day course Participants will learn: • The essential elements necessary in validating an internal credit ratings system • The essential elements necessary in validating an internal credit ratings process • The key difficulties that model developers often face in developing credit risk models • How to establish whether the key difficulties have been appropriately addressed • How to evaluate various common solutions • How key difficulties should affect the model design • How data deficiencies and other difficulties affect risk component estimation • How data deficiencies and other difficulties challenge the quantitative validation process (i.e., back testing and benchmarking) • Weaknesses in current quantitative validation techniques • How to address problems in data quality • Solutions to reporting and data handling problems • How to interpret and implement IRB use tests