IFRS UPDATE – Master Class

This course will give you an up-to-date perspective on the latest trends in the International Standards for Financial Reporting. It is suitable for professionals who understand the structure of the framework of international accounting and are aware how to prepare group financial statements – including subsidiaries, associates and joint ventures. It will help you understand how to apply relevant financial reporting standards to key elements of financial reports. You will find out how to identify and apply disclosure requirements for companies in financial reports and notes. Course is held originally in English but translation in Bulgarian will be available.

SESSION 1: FINANCIAL INSTRUMENTS

With the final version of IFRS 9 being published in the summer of 2014 we now have clarity as to the treatments and timings associated with IFRS9. As IFRS 9 does not have an implementation date until 2018, there will still be a number of years where IAS39 will still be applied by either the entity or those entities with whom it has relationships. This session provides a reminder therefore of the key rules of IAS 39.

Context

Summary of the current status of IAS 39 and IFRS 9.
Analysis of the driving forces behind the development of IFRS9 and the accounting problems it is trying to fix.
IFRS 9 covers three main areas which will be covered areas:

  • Exploration of the categories available and the measurement basis for each category.
  • Financial Assets: the measurement of financial assets under IFRS9 has been simplified.
  • Impairment: Throughout the credit crises, a major criticism of impairment for financial assets was the reactive approach to the recognition of impairment.
  • Exploration of the move to a proactive system of impairment in order to provide better information with regards to the credit quality of financial investments.
  • Hedging: Whilst existing rules on hedging are designed to prevent earnings management they can prevent companies from adopting hedge accounting in their financial statements.  

    Exploration of the relaxation of those rules and the replacement of bright line definitions with qualitative analysis in determining whether or not to apply hedge accounting.

SESSIONS 2 and 3: OTHER RECENT CHANGES

Many areas of accounting have changed over the last few years.

This sessions explore some of the developments which have occurred in recent years.

  • IFRS 13 Fair value Measurement: This standard was written in response to the difficulties in measuring fair values in illiquid markets. This session shall explore the significant judgements that have to be made in applying the fair value frameworks together with guidelines available for the private equity sector.
  • IFRS10 Consolidated Financial Statements. Overview the new control framework and the consolidation exemptions available for investment entities. Examination of the judgements that have to be applied when making consolidation decisions.
  • IFRS 15 revenue from Contracts with customers. This session explores the new framework and decisions required when deciding how and when to account for revenue recognition
  • ED LEASES. Explanation of the implications for entities of capitalising operating leases in their financial statements.

SESSION 4: IFRS REFRESHER

Whilst many aspects of accounting have changed in recent years others have remained static.

However, their application can often be difficult. This session explores a range of areas including:

  • Share Based Payments
  • Property, plant and equipment
  • Provisions
  • Impairment of assets
  • Investment property

Your Tutor: Lincoln Miles