23rd October 2017
IFRS Update Master Class
This one day course on IFRS will provide an insight into the recently issued standards and IFRIC Interpretations
1. Revenue Recognition (9:00 – 10:30)
This session explores the driving factors behind the development of the new accounting standard which is effective in 2018. It then provides a comprehensive review of the revenue recognition framework explaining how it intends to prevent the front loading of revenue recognition and provide better guidance for dealing with bundled packages where multiple products and services are provided to one client. Practical issues that will be faced in the implementation of the new accounting standard are also considered here.
2. Leases (10:45 – 12:15)
In 2019 a new form of accounting for leases will be implemented involving the capitalisation of assets and the recognition of a liability for many assets currently off balance sheet as they are classified as operating leases. This session explores how to identify which assets are within scope, the significant impact that asset, liability and expense recognition will have on key performance metrics and the technical detail of the accounting standard.
3. Financial Instruments (13:15 – 14:45)
In 2018 there will be significant changes in the way that financial instruments are accounted for. Classification will be simplified being based on a business model approach, impairment will change from a reactive system to a proactive system and hedging will become more principles based to give a closer reflection in the financial statements of the risk management activities of the business. This session provides an overview of these changes.
4. Insurance Contracts (15:00-16:15)
IFRS 17 is the 2nd phase of a long term project to standardise the approach taken by entities when accounting for insurance projects. IFRS 17 is effective from periods beginning on or after 1st January 2021 and early adoption is permitted for those who have adopted IFRS 9 and IFRS 15. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts and enables users to understand the impact on performance, position and cash flows. This part provides an overview of the key aspects of the new accounting standard.
5. Recent IFRIC Pronouncements (16:15-17:00)
IFRIC 22 clarifies which exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. IFRIC 22 is effective from 1st January 2018.
It may be unclear how tax law applies to a particular transaction or circumstance, or whether a taxation authority will accept a company’s tax treatment. IAS 12 Income Taxes specifies how to account for current and deferred tax, but not how to reflect the effects of uncertainty. IFRIC 23 provides requirements that add to the requirements in IAS 12 by specifying how to reflect the effects of uncertainty in accounting for income taxes. IFRIC 23 is effective from 1st January 2019.