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Certificate in IFRS

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Course Overview

International Financial Reporting (IFRS) is the indisputably global solution for any country in the world to integrate into the international capital markets. There is virtually no room for a local solution in this category, and an increasing number of entities are moving to IFRS. Access to capital from both the domestic and international arena is inextricably linked to the integrity and international credibility of financial reporting.
The IFRS standard setters have been pursuing a process of revamping standards to improve global financial reporting and this course is a necessity for IFRS preparers and users to be up-to-date with current standards and trends.
This course offers the learner a comprehensive understanding of the essential elements of IFRS; beginning by building on the foundations laid by the IASB’s mainstream IFRS standards.
The course develops key skill competencies through the application of sound theoretical content within a practical, real-life inspired case-study based environment.

Key Takeaways

1
Practical application of IFRS standards
2
Practical understanding of the transitional challenges and approaches in moving to Internationally accepted reporting norms of IFRS
3
Understanding of recent changes in IFRS and practicalities of their application
4
Improved knowledge and understanding of the global trends for International Financial Reporting Standards
5
IFRS changes on the horizon and their impact in Financial Reporting

LEORON - Professional Development Institute
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Built upon the strong experience in the manufacturing sector, which the founders developed in Sweden during the 90’s global expansion, LEORON evolved into a comprehensive training institute, offering training and development solutions in all strategic corporate functions, including corporate finance, HR, SCM, operations, and engineering. With strategic distribution of our offices in leading locations, such as Dubai, Riyadh, Jonkoping, Skopje, Accra, and Almaty, our team of experts delivers approximately 500 courses annually, and roughly 10000 professionals are equipped with appropriate education and the latest insights in a wide assortment of industries across the EMEA region.

Course Outline

Day 1
IFRS Overview
→ The Global movement to IFRS
→ Principles vs. rule-based approach to accounting
→ US GAAP Convergence IFRS Core Concepts
→ IAS 1 and Conceptual Framework
• Purpose and rationale for the conceptual framework
• Overview of significant changes to the framework
− Reason for the changes
− Impact on IFRS reporting
• Core concepts and principles
− Tackling measurement alternatives
− Recognition and derecognition principles
− Presentation and disclosure
− Application of the true and fair override
• Fundamental and enhancing qualitative characteristics of financial statements
• Materiality and aggregation
Assets under IFRS
→ IAS 16: Property, Plant and Equipment
• Cost capitalisation criteria
• Repairs and maintenance
• Component accounting and depreciation
• Revaluation methodology
• Establishing capitalization thresholds
• Decommissioning costs
• Guidance on self-constructed assets
Case Study: Exercises and group discussion of different scenarios to determine if costs can be capitalized and an exercise on the application of component accounting followed by in depth group discussion.
→ IAS 2: Inventories
• Scope of the standard
• Cost components and valuation issues
• Identifying and accounting for inventory impairment
Case Study: Analysing costs included in inventory; assessing how to deal with discounts / annual volume rebates based on purchase targets and sales targets.
→ IAS 23: Borrowing Costs
• Reason for the standard
• Determining qualifying assets under the scope of the standard
• Specific and general borrowing costs
• Commencement and suspension of capitalisation
Case Study: Scenarios to calculate interest capitalised with specific and general borrowings.
→ IAS 38: Intangibles
• Core concepts and definitions
• Accounting for goodwill
• Recognition and measurement of intangibles
• Purchase price allocation considerations
• Definite and indefinite useful life
• Research and development
• What is not eligible to be capitalized as an intangible asset
Case Study: Exercise on intangible cost capitalisation to reinforce what was taught.
Day 2
Assets under IFRS (continued)
→ IAS 40: Investment Property
• What is investment property
• Accounting alternative for investment properties
− Fair value model
− Cost model
• Disclosure requirements for investment properties
Case Study: Determining the classification of real estate property under IAS 40.
→ IAS 36: Impairment of Non-Current Assets
• Principles what is impairment
• Key stages in the impairment process
− Impairment indicators
− Determining recoverable amount
− How to establish cash generating units
− Impairment of goodwill
• Application of impairment adjustments
• Guidelines for impairment reversals
Case Study: Identification of cash generating units; numerical application of impairment.
Accounting for Liabilities
→ IAS 37: Provisions, Contingent Liabilities and Contingent Assets
• Definitions and concepts to determine if provisions
• Identifying the obligating event
• Legal and constructive obligations
• Estimating provisions
• Recognition criteria
• Restructuring and onerous contracts
• Treatment of contingent assets and liabilities
Case Study: Thought provoking exercises on the obligating event, contingent liabilities, and onerous contracts.
Financial Statement Presentation
→ IFRS 5: Non-Current Assets Held for Sale and Discontinued Operations
• Purpose of this standard
• Criteria to determine held for sale / discontinued operations
• Accounting treatment under IFRS 5
Case Study: Mentally stimulating example for delegates to discuss if the IFRS 5 criteria are satisfied for an asset held for sale.
→ IFRS 8: Operating Segments
• Purpose of the standard
• How the management-based approach works
• Identification of reportable segments
• Role of the chief operating decisionmakers (CODM)
• Reportable segment thresholds
Case Study: Numerical example to determine reportable segments.
Day 3
Fair Value and Financial Instruments
→ IFRS 13: Fair Value Measurement
• Characteristics of fair value
• Fair value hierarchy and how it is used
• Steps to determine fair value
• Fair value in illiquid markets
• The grey areas and challenges of application for financial instruments that are thinly traded
Case Study: Examples and group discussions on determining the hierarchy rating; determination of highest and best use and calculations of to apply the depreciated replacement cost approach.
→ IAS 32: Financial Instruments – Presentation
• Core definitions in financial instruments
• How to determine if it is a derivative
• Scope of financial instrument standards
• Distinction between debt and equity
• Compound financial instruments
Case Study: Group discussion on complex example of intercompany / related party debt to determine if it should be accounted for as debt or equity.
→ IFRS 9: Financial Instruments - Classification and Measurement of Financial Assets and Liabilities
• Categories of financial assets
• How the business model test works
• Assessing contractual cash flow characteristics
• IFRS 9 “own credit” controversy
• Accounting for intercompany loans not set at market rate
Case Study: Scenario based analysis to determine classification of financial assets under IFRS 9.
→ IFRS 9: Financial Instruments – Derecognition of financial instruments
• Transfer of risk and rewards and control test for determining when to derecognise
• Liabilities quantitative and qualitative tests for derecognition
Case Study: Analysing a number of scenarios to determine if the financial instruments should be derecognised.
→ IFRS 9: Financial Instruments – Impairment of Financial Assets
• Differences between the incurred loss model and expected loss model
• Expected loss model core differences to US GAAP
• Development of key assumptions in loss model
• Practical implementation challenges
Case Study: Numerical example applying IFRS 9 to debt categorized at fair value through other comprehensive income.
→ IFRS 9: Financial Instruments – Hedge Accounting
• Core principles and different types of hedges
• Accounting treatment
− Fair value hedges
− Cash flow hedges
• How to deal with hedge ineffectiveness
• Practical implementation challenges
Case Study: Short discussion example on determining type of hedge.
→ IFRS 7: Financial Instruments – Disclosures
• Categories to disclose of financial assets and liabilities
• Credit risk, liquidity risk and market risk disclosures
Accounting for Pensions
→ IAS 19: Employee Benefits
• Background of what is covered in IAS 19
• Accounting for short term benefits
• Accounting for post- retirement plans
− Defined benefit plans
− Defined contribution plans
• Current and past service costs
• Actuarial assumptions and treatment of actuarial gains and losses
Case Study: Numerical case study on accounting for an end of service scheme; numerical example on a continued long service award paid during employment.
Day 4
Group Accounting Matters
→ IFRS 3: Business Combinations
• Determining if an asset purchase or a business combination
• Options of how to recognise and measure goodwill
• Purchase price allocation
• Exceptions to the general recognition and measurement principles
• Deferred tax issues with consolidation
→ IFRS 3: Mechanics of Consolidation
• Steps and procedures to follow
• Handling fair value adjustments
• Accounting for contingent consideration
• Intergroup trading and recording unrealised profit for parent and NCI
• The journal entries
Case Study: Determining goodwill and preparing and posting the journal entries for a parent subsidiary consolidation.
→ IAS 27: Separate Financial Statements
• Approach and differences to consolidated financial statements
→ IAS 28: Investments in Associates
• Determining significant influence
• Application of the equity method
• Adjustments required for consolidated financial statements including fair value differences
→ IAS 21: Effects of Changes in Foreign Exchange Rates
• Discussion of functional, foreign and reporting currency
• How the functional currency is determined and differences to US GAAP
• Foreign currency transaction and translation accounting treatment
• Goodwill and fair value adjustments under IAS 21
• Treatment of net investment in foreign entities
→ IFRS 11: Joint Arrangements
• How joint control is determined
• Types of joint venture arrangements
• Accounting treatment and adjustments required
Case Study: Scenario to discuss and determine if a structure is accounted for as a joint arrangement.
→ IFRS 12: Disclosure of Interests in Other Entities
• Definitions and core concepts
• What needs to be disclosed
• NCI disclosures
• Unconsolidated structured entities – the issue and key considerations
Day 5
Other Financial Reporting Matters
→ IAS 24: Related Party Disclosure
• Core concepts and definition
• How to identify related parties
• Investments of key management personal considerations
• Disclosure requirements
→ IAS 8: Accounting Policies, Changes in Estimates and Errors
• Accounting policy and related disclosures
− Potential changes on the horizon in disclosures
• Treatment of changes in accounting policies, errors and estimates
Case Study: Interesting scenario for group discussion to assess treatment under IAS 8.
→ IAS 34: Interim Financial Reporting
• Purpose of core principles of this standard
• Minimum components of an interim financial statement
• Revenues received seasonally, cyclically or occasionally
→ IAS 7: Statement of Cash Flows
• Comments from regulators and financial analysts
• Cash and cash equivalents
• Classification of operating, investing and financing activities
• Differences with the direct and indirect method
• Non-cash transactions
Case Study: Short calculation on leasing example and its impact on the cash flow statement; example of foreign exchange on asset purchase and impact on cash flow statement.
→ IAS 10: Events after the Reporting Date
• Overview of the standard
• Classification and treatment of events as adjusting and non-adjusting
• Going concern considerations
» IAS 33: Earning per Share (only covered if requested by class)
» Objective of the standard
» Calculating basic and diluted EPS
» Impact convertible loans and share options
» How to deal with changes in capital structure
First Time Adoption (only if requested by class)
→ IFRS 1: First Time Adoption of IFRS
• Scope of the standard
• Options / alternatives to move to IFRS under IFRS 1
• Presentation and disclosure requirements
Case Study (only if requested by class):
Numerical example on transitioning to IFRS with allowable methods.
Accounting for Leases
→ IFRS 16: Leases
• Overview of the changes from IAS 17 to
IFRS 16 and the key differences
• Problems with IAS 17 and why IFRS 16 was issued
• How to apply the revised single model approach
• Exceptions for short term and low value leases
• US GAAP dual model approach and key differences
• Impact on financial statements and debt covenants
Case Study: Examples to assess if there is a leasing component for several scenarios; If time permits, a short numerical exercise on the transition to IFRS 16.
Accounting for Leases
→ IFRS 15: Revenue from Contracts with Customers
• Key differences from the old IAS 18 that was discontinued in 2017 to IFRS 15
• Detailed review of the new five step model
− Identification of the contract
− Identification of the performance options
− Determining and allocating the transaction price
Case Study: Thought provoking examples and scenarios covering the different steps of this complex standard.

Who Should Attend?

This highly practical and interactive course has been specifically designed for
This course has been specifically designed for the benefit of:
→ Heads of Finance
→ Chief Accountants
→ Financial Controllers
→ Prepares of IFRS financial statements
→ Analysts requiring knowledge of IFRS compliant statements
→ External and Internal Auditors

FAQ

What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +1071 4 1075 5711 or [email protected]
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.

Reviews

  • Review:
    Indeed, it was a well-organized training and I was very happy how LEORON has organized this CIFRSS program. From the first day to the completion of the program everything has gone smoothly. The services provided by the Hotel were excellent and the location is marvelous as well. Although I have a good knowledge in IFRS, however this training has normously increased and improved my knowledge and experience in this subject. Geoffrey is an excellent instructor since he knows superbly how to concur between the theoretical and practical information for the purpose of being absorbed readily by the peers. He welcomed any query proposed by the peers and answered back immediately with practical examples and excellent patient. Moreover, the contents of this program have been fraught of practical cases which will certainly help us to understand and apply easily the IFRS during our work. I recommend everyone to enroll for this program since what I expected from LEORON has been realized. -AHMED TAWFIK & CO. CPA, Doha – Qatar
    ANTONIO GHALEB
    Senior Audit Risk Manager