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International Financial Reporting Standards



Introduction

Most of Asia and Europe has now converted to the new International Financial Reporting Standards. In America, while a different set of accounting standards apply, regulators there, are considering the possibility of allowing foreign companies to file returns under the International Financial Reporting Standards. Japan may too consider adopting the IFRS, at the moment they are looking at ways of reducing the difference between their standards and those of the IFRS.

Methodology

We will use case studies, published annual reports, examples using excel spreadsheets and group case studies to illustrate the practical aspects of the accounting standards.

Aims of the Course

While the objectives of the IFRS is to increase the transparency and comparability of financial information and so enhance the efficiency of the international capital markets, the changeover has proved quite challenging and confusing for a significant number of entities. Indeed, the designers of the new IFRS standards have been criticised for the confusion surrounding some of the more complex standards, particularly IAS 39 on financial instruments. This course looks at the practical implementation difficulties when implementing the standards In particular, the course will address.

• IAS 39, and accounting for financial instruments
• The difficulties of Mark to Market Accounting
• The rules surrounding consolidation and how they have changed significantly under the new accounting standards
• Goodwill issues
• Distinguishing Liabilities from Equities Lease Accounting

Agenda

Session 1/4

IFRS Key Principles - Liabilities

• Provisions
• Legal and constructive obligations
• What can and what cannot be recognised?
• Restructurings

Share-Based Payment

• Valuing Share Based Payments
• Profit and Loss Issues
• Equity settled share-based payment

Session 2/4

Income Statement

• Recognition and Measurement of Income
• Impact on Legal Form of Financial Reporting
• Major Components of the Income Statement
• Offsetting Revenue and Expenses

Cash Flow Statement

• Benefits of Cash Flow Statements
• Exclusion of Non-cash Transactions
• Gross v Net Basis
• Reconciliation of Cash and Cash Equivalents

Session 3/4

Treasury Risk

• Interest Rate Risk
• Foreign Exchange Risk
• Implied Volatility (Options)
• Assessing hedge effectiveness (regression & dollar offset methods)

Revenue Recognition Issues

• Revenue recognition from the rendering of services
• Revenue recognition from interest, royalties and dividends
• Revenue Measurement
• Impact of IAS 11


Session 4/4

Accounting for Insurance Contracts

• Overview
• Application of IAS 39 to Insurance contracts
• Embedded Derivative Issue
• Other Issues
• Summary Draft Statement of Principles
• Definition of Terms

Accounting for Capital Instruments

• Accounting for Debt and Equity Investments
• Held to Maturity Classification
• Transfer between Portfolios
• Equity Method of Accounting

WHO SHOULD ATTEND

Accountants, Finance Managers, Auditors, Regulators

Approach

Plenty of use will be made of practical examples and delegates will have an opportunity to analyse a set of published accounts. Topics covered includes, the background and structure of accounts, analysing group accounts, interpretation of company accounts etc.

Duration

In its ‘off-the-shelf’ form, this is a 1-day course. However, the course duration and content can be tailored to suit specific requirements.