Course Objectives
International Financial Reporting Standards (IFRS) and 2021 Updates
Course Methodology
<p>The course uses a mix of interactive techniques, such as brief presentations by the consultant, application of different theories, group exercises to exchange experience and apply knowledge acquired throughout the course.</p>
Course Objectives
By the end of the course, participants will be able to:
Describe the setting process in IFRS and list the currently available standards
Explain the most recent updates on existing IFRS and evaluate the effect of newly issued standards on their organization
Determine the correct presentation and minimum disclosure for components of statements of financial position, statements of comprehensive income, statements of owners' equity, and statements of cash flows in accordance with IFRS
Appraise and properly account for transactions affecting current assets and liabilities, non current assets and liabilities, and revenues and expenses in accordance with IFRS
Use professional judgment in applying IFRS for matters relating to non recurrent business transactions
Target Audience
Professionals in the fields of finance and accounting as well as professionals seeking to enhance their international accounting knowledge from companies implementing IFRS as the standard of reporting.
Target Competencies
Understanding financial statements
Financial reporting
Applying IFRS
Accounting for current and non current assets and liabilities
Classifying investments
Describing updates and amendments
Assessing impact on financial accounts
Course Outline
Introduction to IFRS and presentation of financial statements
Defining the term 'IFRS'
IFRS standard setting process
Financial position presentation format as per IAS1, presentation of financial statements
Components and classification of current and non-current assets and liabilities
Offsetting assets and liabilities
Income statement minimum presentation requirements as per IAS1, presentation of financial statements
Presentation of revenues and expenses by nature or by function
Components and classification of stockholders’ equity
Other comprehensive income: nature of its components
Supplemental disclosures
IFRS rules for current assets and liabilities
Cash and cash equivalents (IFRS 9)
Accounts receivable (IFRS 9):
Allowance for doubtful and bad debts: based on new impairment model of IFRS 9
Pledging, assigning and factoring of receivables
Accounts payable and accruals (IFRS 9)
Inventory (IAS 2):
Ownership: when to include inventory in your books
Measurement at initial recognition: what to include in 'cost'
Inventory cost-flow assumptions
Subsequent measurement: lower of cost or net realizable value
IFRS rules for non-current assets and liabilities
Property, plant and equipment (IAS 16):
Initial recognition and subsequent measurement
Cost model versus revaluation model
Assets held-for-sale (IFRS 5)
Treatment of decommissioning costs (IAS 37)
Impairment of property, plant and equipment (IAS 36)
Intangible assets (IAS 38)
Why some intangible assets are not recognized on balance sheet
Cost model versus revaluation model
Investment property (IAS 40)
Distinguishing investment property from other assets
Cost model versus fair value model
Provisions, contingent liabilities and contingent assets (IAS 37)
Financial assets (IFRS 9)
Type of investment securities
Classification under IFRS 9: Fair Value Through Profit or Loss (FVTPL), Fair Value Through Other Comprehensive income (FVTOCI), amortized cost
Initial recognition and subsequent measurement
Transfer between categories
Impairment of financial assets under the new standard
Revenue from contracts with customers (IFRS 15)
Scope of IFRS 15
Describing the five-step model framework under IFRS 15
Step 1: Identifying the contract with the customer
Step 2: Identifying the performance obligations in the contract
Step 3: Determining the transaction price
Step 4: Allocating the transaction price to the performance obligations in the contract
Step 5: Recognizing revenue when the entity satisfies a performance obligation
IFRS 16, Leases
Recognition exemptions: expensing lease payments
How will the lease of small value items be affected
Identifying a lease transaction
Accounting by lessees
Accounting by lessors
Effective date and transition
Introduction to IFRS and presentation of financial statements
Defining the term 'IFRS'
IFRS standard setting process
Financial position presentation format as per IAS1, presentation of financial statements
Components and classification of current and non-current assets and liabilities
Offsetting assets and liabilities
Income statement minimum presentation requirements as per IAS1, presentation of financial statements
Presentation of revenues and expenses by nature or by function
Components and classification of stockholders’ equity
Other comprehensive income: nature of its components
Supplemental disclosures
IFRS rules for current assets and liabilities
Cash and cash equivalents (IFRS 9)
Accounts receivable (IFRS 9):
Allowance for doubtful and bad debts: based on new impairment model of IFRS 9
Pledging, assigning and factoring of receivables
Accounts payable and accruals (IFRS 9)
Inventory (IAS 2):
Ownership: when to include inventory in your books
Measurement at initial recognition: what to include in 'cost'
Inventory cost-flow assumptions
Subsequent measurement: lower of cost or net realizable value
IFRS rules for non-current assets and liabilities
Property, plant and equipment (IAS 16):
Initial recognition and subsequent measurement
Cost model versus revaluation model
Assets held-for-sale (IFRS 5)
Treatment of decommissioning costs (IAS 37)
Impairment of property, plant and equipment (IAS 36)
Intangible assets (IAS 38)
Why some intangible assets are not recognized on balance sheet
Cost model versus revaluation model
Investment property (IAS 40)
Distinguishing investment property from other assets
Cost model versus fair value model
Provisions, contingent liabilities and contingent assets (IAS 37)
Financial assets (IFRS 9)
Type of investment securities
Classification under IFRS 9: Fair Value Through Profit or Loss (FVTPL), Fair Value Through Other Comprehensive income (FVTOCI), amortized cost
Initial recognition and subsequent measurement
Transfer between categories
Impairment of financial assets under the new standard
Revenue from contracts with customers (IFRS 15)
Scope of IFRS 15
Describing the five-step model framework under IFRS 15
Step 1: Identifying the contract with the customer
Step 2: Identifying the performance obligations in the contract
Step 3: Determining the transaction price
Step 4: Allocating the transaction price to the performance obligations in the contract
Step 5: Recognizing revenue when the entity satisfies a performance obligation
IFRS 16, Leases
Recognition exemptions: expensing lease payments
How will the lease of small value items be affected
Identifying a lease transaction
Accounting by lessees
Accounting by lessors
Effective date and transition