Euromoney Audit Training

Through class discussions, numerous examples, analysis of financial statements and brief cases you will:

• Receive a comprehensive review of the most important IFRS standards and SIC / IFRIC interpretations
• Understand the requirements and choices for IFRS financial statements
• Analyse and interpret IFRS financial statements
• Apply newly applicable IFRS amendments effective in the current year
• Be prepared to implement upcoming new requirements that will be effective in future years
• Receive information on the latest developments and anticipated changes in IFRS in order to plan ahead
• Become familiar with internet sources in order to maintain up-to-date knowledge
• Understand the progress to date on the convergence of local standards to IFRS throughout the world
• Put theory into practice with practical company case study exercises

Course background

The move to IFRS is sweeping the world. Examples of this trend include:

• As of 2005 listed entities in the European Union apply IFRS
• The US Securities & Exchange Commission (SEC) is considering a mandatory transition to IFRS for US companies
• Canada requires IFRS for its listed companies as of 2011
• Australia and Hong Kong require listed companies to use IFRS
• Japan is converging with IFRS
• India is in the process of adopting IFRS
• Several Middle Eastern and South American countries have adopted IFRS and several more are considering it

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 course will help delegates to understand the significant issues to address when applying IFRS. Participants will also receive information on the latest developments and anticipated changes to IFRS. Using real-world company financial statements and other case studies, delegates will learn how to put IFRS accounting principles into practice.

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 and 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 and 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 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 recognizing 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

• 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)). 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 graduate level 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

  • International Financial Reporting Standards (IFRS) - Abu Dhabi

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.

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