IFRS Accounts - A Complete Guide Intermediary

• By the end of the ifrs accounting course participants will be able to prepare a full set of IFRS guide to financial statements with confidence
• Participants will be aware of all the most significant current issues and what would be considered good and poor compliance with the Standards and IFRS accounting rules
• By the end of the ifrs accounting course participants will have been given an answer to any questions that they may have regarding how IFRS would apply to their business

Part 1 – Regulatory framework and key principles

• Who sets IFRS? The role of the IFRS Foundation and the importance of local Endorsement of issued Standards
• Regulation of compliance including the work of the IFRIC
• The IFRS conceptual framework – what are the key principles
• Application to other entities:

• IFRS for Small and Medium-Sized Entities
• Pension funds (IAS 26)
• Oil and gas industry (IFRS 6)

• Presentation requirements (IAS 1)

• Primary statements and overview of key disclosures
• Management commentary

• Selection of appropriate Accounting Policies and changes to policies and correction of errors (IAS 8)
• First-time adoption of IFRS (IFRS 1)
• Overview of IFRS plans and likely future developments
• Case study – review and analysis of recently issued IFRS financial statements

Part 2 – Reporting Current and non-current assets and liabilities

• Reporting non-current tangible assets (property plant and equipment) – (IAS 16)

• Qualifying criteria and measurement on first recognition
• Subsequent measurements including depreciation methods with examples and option to revalue
• Impairment testing including full worked example (IAS 36)

• Reporting intangible assets and IFRS accounting for fixed assets (IAS 38)

• Distinction between goodwill and all other intangibles
• Recognition if internally developed or acquired from third parties
• Examples of the above including R&D and software assets
• Amortisation or impairment testing including impairment of goodwill

• Reporting financial assets

• Category options of assets under IFRS 9
• Assets to be valued at fair value, the three levels of fair value per IFRS 13 including examples of each
• Assets reported at amortised cost including examples
• Impairment testing of financial assets including the requirement to estimate future expected credit losses
• Reporting income, gains and losses on financial assets including those gains and losses to be reported in Other Comprehensive Income (OCI)
• Derivative assets (and liabilities), how to value including worked numerical examples

• Leased assets – the new requirements of IFRS 16 lease accounting

• First-time adoption and when the implementation date
• Contracts within the scope of IFRS 16 and lessee accounting for Right of Use Assets on the balance sheet and the lease liability
• Exemptions available and alternative accounting treatment for such contracts
• Full worked example showing the impact on balance sheet, income and cash flow statements

• Key issues with current assets including valuation of inventory (IAS 2)
• Reporting liabilities (IFRS 9 and IAS 37)

• The difference between trade payables, accruals and provisions
• Recognition and valuation criteria for all liabilities and the treatment of contingent liabilities
• Examples of the above including special case situations such as restructuring and termination payments
• Financial liabilities and the difference between liabilities and equity with equity accounting in IFRS
• Valuation options for financial liabilities including worked examples

Part 3 – Income and cash flow statements

• Revenue recognition in accordance with IFRS 15

• Identifying contracts and separate performance obligations including examples
• Valuation of revenue including contingent revenues with examples
• Treatment of long-term contracts including onerous loss-making contracts
• Presentation and disclosure requirements

• Presentation of expenses

• Costs of revenues and other operating expenses
• Exceptional items and discontinued activities – how to identify and present the gains and losses (IFRS 5)
• Income tax expenses and credits – including how to value current and deferred tax items (IAS 12)
• Uncertainty in tax provisions the new requirements of IFRIC 23 with examples

• Employment benefit expenses (IAS 19 employee benefits)

• Wages, salaries and holiday pay (all compensated absences)
• Postretirement benefits including accounting for pension benefits including worked numerical examples
• Introduction to share-based payment expenses (scope and basic requirements)

• Reporting Other Comprehensive Income

• Gains and losses to be included in OCI
• Tax treatment of OCI gains and losses
• Impact when gains and losses are realised

• Treatment of foreign currency cash flows (IAS 21)

• What is ‘foreign’ and valuation requirements

• IFRS cash flow statements (IAS 7)

• What is included in cash and cash equivalents?
• Main categories of cash flow – operating, financing and investing
• Identifying cash impairment and trapped cash
• Treatment of foreign exchange gains and losses in cash flow

Part 4 – Presentation and disclosure requirements

• The main primary statements including the Statement of Changes in Equity (SOCIE)
• Reporting accounting policies, management judgements and estimation uncertainty
• Financial risk disclosure (IFRS 7)
• Related party transactions (IAS 24)
• Other requirements for larger (listed) entities

• Operating segment reporting (IFRS 8)
• Interim reports in accordance with IFRS (IAS 34)

• Management Commentary
• Common problem areas and other regulatory comments on the quality of disclosures
• Case study examples and good and poor practice

The trainer qualified as a Chartered Accountant in 1987 with a six-partner firm, Gilberts, following completion of an accountancy foundation course. In the same year, he joined Binder Hamlyn to work in their Business Development Group. In 1990, he joined a major training company to work as a trainer on their accounting exam courses. During the next four years, he taught auditing, financial reporting and taxation for ACA, ACCA, CIMA and AAT exams, he also taught the ACA multi-disciplinary case study. He mainly taught full-time courses organised for Deloitte, PWC and EY; he was also personally responsible for the ACA final level auditing paper. In 1993, he became the director of post-examination CPD training for accountants. He was also responsible for financial training programmes for non-accountants, especially solicitors. Around this time, he also started training in International Accounting Standards initially for Ernst & Young’s non-UK-based professional staff in Europe. Since 1998, he has been training on a freelance basis, concentrating on financial training for both accountants and non-accountants. The trainer also specialises in training on IFRS and US accounting standards and has presented on both subjects throughout Europe for the past 20 years. He has considerable experience in presenting training on the following topics:

• Accounting for financial instruments and insurance contracts
• IFRS reporting issues for energy and pharmaceutical businesses
• Completion accounts and the role of financial standards in corporate finance transactions
• Accounting for business combinations – mergers, acquisitions and all joint and special purpose arrangements.