Course dates
Accurately applying IFRS is a demanding process that requires planning and thought. The standards are principles-based and require a good understanding of the underlying concepts as well as the application of extensive professional judgement.
This 4-day training program will provide you with a completely up-to-date practical analysis of the complex requirements of International Financial Reporting Standards.
The course will help you understand the significant issues to address when applying IFRS. You will also receive information on the latest developments and anticipated changes to IFRS. Using real-world company financial statements and other case studies, you will learn how put IFRS accounting principles into practice.
Through class discussions, numerous examples, analysis of financial statements and brief cases you will:
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Receive a comprehensive review of the most important IFRS standards and SIC / IFRIC interpretations
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Understand the requirements and choices for IFRS financial statements
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Analyse and interpret IFRS financial statements
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Apply newly applicable IFRS amendments effective in the current year
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Be prepared to implement upcoming new requirements that will be effective in future years
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Receive information on the latest developments and anticipated changes in IFRS in order to plan ahead
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Become familiar with internet sources in order to maintain up-to-date knowledge
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Understand the progress to date on the convergence of local standards to IFRS throughout the world
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Put theory into practice with practical company case study exercises
Who should attend
The course will be of value to the following professionals:
Course background
The move to IFRS is sweeping the world. Examples of this trend include:
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As of 2005 listed entities in the European Union apply IFRS.
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The US Securities & Exchange Commission (SEC) is considering a mandatory transition to IFRS for US companies.
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Canada requires IFRS for its listed companies as of 2011.
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Australia and Hong Kong require listed companies to use IFRS.
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Japan is converging with IFRS.
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India is in the process of adopting IFRS.
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Several Middle Eastern and South American countries have adopted IFRS and several more are considering it.
Day 1
Introduction to IFRS
- Brief background of IFRS history and development
- Currently issued pronouncements and their effective dates
- Standards: IAS and IFRS
- Interpretations: SIC and IFRIC
- The IFRS framework: elements, recognition and measurement
- Applying the hierarchy of international standards
- Current status of global convergence – worldwide
- IFRS application
- U.S. convergence projects and their impact on IFRS
- How to research and stay up to date on IFRS
Case study: Applying the IFRS Framework Principles in Real-world Situations
Financial statements and presentation issues
- Presentation
- IAS 1 Presentation of Financial Statements
- Statement of Financial Position
- Statement of Comprehensive Income
- Statement of Changes in Equity
- IAS 7 Statement of Cash Flows
- IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
- Policies and adjustments
- IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- IAS 10 Events after the Reporting Period
- Other Disclosure and Reporting Issues
- IFRS 8 Operating Segments
Case studies:
- Review the New Disclosure and Presentation
- Requirements using Real World Financial Statements
- Determine the Treatment of Events after the Reporting Period
Day 2
Revenue recognition
- IAS 18 Revenue
- Definitions
- Revenue measurement, including gross vs. net reporting
- Exchange transactions (barter)
- Revenue from sale of goods, including recent recognition issues
- Revenue from services – recognition criteria and applications
- Revenue from interest, dividends and royalties
Case study: Practical Revenue Recognition and Application Scenarios.
Inventory
- IAS 2 Inventory
- Definition
- Inventory measurement – determining cost
- Allocating overheads
- Write-downs to net realisable value and reversal considerations
Tangible and intangible assets
- IAS 16 Property, Plant and Equipment
- IAS 23 Borrowing Costs
- IAS 38 Intangible Assets
- IAS 40 Investment Property
- IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
- Initial recognition and measurement, including asset retirement costs
- Treatment of subsequent expenditures
- Valuation methods
- Depreciation, including composite asset accounting
- Assets held for sale
- Interest capitalisation, including NEW requirements
- Investment property identification and accounting, including alternatives
- Treatment of internally generated intangible assets, including exceptions
- Accounting for research and development
Case studies:
- Property, Plant and Equipment – Recognition, Measurement and Revaluation
- Accounting for Asset Retirement Obligations
- Investment Property – Recognition, Valuation and Changes in Use
- Intangible Assets –Recognition, Measurement, and Subsequent Expenditures
Day 3
Impairment of tangible and intangible assets
- IAS 36 Impairment of Assets
- Identifying an asset that may be impaired
- Determining the recoverable amount
- Measuring and recognising an impairment loss
- Identifying cash-generating units (CGU) and assigning assets
- Allocating losses to individual assets
- Reversing impairment losses
Case study: Evaluating the impairment testing of goodwill and determining whether impairment should be recognised.
Provisions and contingencies
- IAS 37 Provisions, Contingent Liabilities and Contingent Assets
- Understanding liabilities, contingencies and commitments
- Recognising and measuring provisions, including changes in estimate
- Applying contingency disclosure requirements
Case studies:
- Distinguishing Between Liabilities, Provisions and Contingent Liabilities
- Applying Recognition and Measurement Concepts to Determine Appropriate Accounting Treatment
- Calculating the Correct Amount of Provision to Record in Various Situations
Employee benefits
- IAS 19: Employee Benefits
- Short-term employee benefits
- Post-employment benefits – identifying plan types
- Accounting for defined contribution plans
- Accounting for defined benefit plans
- Recognising actuarial gains & losses, including the NEW alternative treatment
- Financial statement recognition and requirements
Case study: Defined Benefit Plan Accounting.
Leases
- IAS 17 Leases
- What is a lease according to IFRS?
- Classifying leases
- Accounting for lessee finance leases
- Accounting for lessee operating leases
- Accounting for lessor finance leases
- Accounting for lessor operating leases
- Operating lease incentives
Case studies: Identifying, Classifying and Accounting for Leases.
Day 4
Financial instruments
- IAS 32 Financial Instruments: Presentation
- IAS 39 Financial Instruments: Recognition and Measurement
- IFRS 7 Financial Instruments: Disclosures
- Overview of NEW IFRS 9 Financial Instruments: Classification and Measurement
- Classifying financial instruments
- Recognising and measuring financial instruments, both initially and subsequently
- Determining fair value
- Applying reclassification rules
- Derecognising financial assets and liabilities
- Recognising, calculating and reversing impairment losses
- Accounting for derivatives
- Identifying and classifying debt and equity instruments
- Meeting the disclosure requirements – IFRS 7 requirements
Case studies:
- Accounting for Financial Instruments – Classification
- Identifying Liabilities vs. Equity
- Applying the De-recognition Model
- Recognising and Calculating Impairment
- Applying the Effective Interest Method: Transaction
- Costs, Amortisation and Premiums/Discounts
Consolidations, associates & joint ventures
- IAS 27 Consolidated and Separate Financial Statements
- SIC 12: Consolidation – special purpose entities
- Consolidated financial statement requirements, including exemptions
- Consolidation procedures
- Non-controlling interest presentation
- Accounting in separate financial statements
Case study: Special Purpose Entity Consolidation.
Accounting for Associates
- IAS 28: Investments in Associates
- Identifying significant interest and associates
- Accounting requirements and exemptions
- Application of the equity method
Case study: Calculating Equity Method Balances.
Accounting for Associates
- IAS 28: Investments in Associates
- Identifying significant interest and associates
- Accounting requirements and exemptions
- Application of the equity method
Case study: Calculating Equity Method Balances.
Accounting for Joint Ventures
- IAS 31: Interests in Joint Ventures
- Identifying joint ventures
- Joint venture types
- Accounting and presentation for each type of joint venture
Foreign Currency Issues
- IAS 21 The Effects of Changes in Foreign Exchange Rates
- Definitions
- Determining the functional currency
- Reporting foreign currency transactions and recognising exchange differences
- Translating foreign entity financial statements
Case studies:
- Determining Functional Currency
- Identifying Monetary Items
- Measuring and Recognising Exchange Gains and Losses
- Translating Foreign Entity Financial Statements
Transitioning to IFRS
- Overview of IFRS 1 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 studies: Starting from a national GAAP financial statement, the IFRS 1 adjustments necessary to create the statement in accordance with IFRS are illustrated.
Course summary and close
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The Course Director is an international instructor 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, Central Asia, the Caucuses, the Balkans, Southeast Asia, Africa and the Middle East and has taught people from over 130 countries.
She has also assisted several national governments in the reform of their accounting systems and in the implementation of international standards and best practices. As well as teaching, she also has written technical accounting material for publication. She has over 17 years of experience in the application and training of IFRS (formerly IAS). She is a U.S. Certified Public Accountant (C.P.A.), a Certified Management Accountant (C.M.A.) and a Certified Fraud Examiner (C.F.E.). She earned her M.B.A. from the University of Wisconsin in the United States.
Prior to entering the international arena, she taught graduate-level business and finance courses in the USA as well as CPA examination review courses. She is President of KAL Consulting, Incorporated and was formerly Senior Vice-President in a regional bank holding company. She also served for eight years on the accounting board of her state, responsible for licensing, examination, monitoring and disciplining C.P.As in that jurisdiction.
Johannesburg Hotel, Johannesburg, South Africa
This programme takes place on a non-residential basis at a central Johannesburg 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.
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.
Course dates