International Financial Reporting Standards (IFRS)

▪ IASB Structure and Operations
o The Global Movement to IFRS
o The Structure of the IASB and How It Works
o US GAAP Convergence

▪ IFRS Core Concepts
o Conceptual Framework
o Criteria for assets and liabilities
o Recognition criteria
▪ IAS 1: Presentation of Financial Statements
o Core concepts and requirements
▪ IAS 7: Statement of Cash Flows
o Classification of operating, investing, and financing activities
o Non-cash transactions

Assets Under IFRS
▪ IAS 16: Property, Plant, and Equipment
o Cost capitalization criteria
o Component accounting
o Revaluation methodology
o Depreciation
Case Study: Exercises on cost capitalization component accounting scenarios application of the revaluation method

▪ IAS 2: Inventories
o Cost components and valuation issues
o Identifying and accounting for inventory impairment
▪ IAS 23: Borrowing Costs
o Qualifying assets
o Commencement and suspension of capitalization
Case Study: Determination and calculation of capitalized.

▪ IAS 38: Intangible Assets
o Criteria for recognition
o Purchase price allocation considerations
o Definite and indefinite useful life
o Measurement requirements and alternatives
▪ IAS 40: Investment Property
o Fair value model
o Cost model
Case Study: Determining the classification of real estate property

▪ IAS 36: Impairment of Non-Current Assets
o Impairment indicators
o Cash generating units and impairment of goodwill
o Recoverable amount and practicalities in its determination
o Application of impairment adjustments
Case Study: Identification of cash generating units; application of impairment testing with goodwill.

▪ Accounting for Liabilities
▪ IAS 37: Provisions, Contingent Liabilities and Contingent Assets
o Identifying the obligating event
o Estimating provisions
o Restructuring and onerous contracts
Case Study: Different scenarios to determine accounting treatment under IAS 37.

▪ IAS 12: Income Taxes o Permanent and temporary differences
o Treatment of tax loss carry-forward and tax credits
o Impairment of deferred tax assets
Case Study: Comprehensive example on treatment of deferred tax.

Financial Statement Presentation
▪ IFRS 5: Non-Current Assets Held for Sale and Discontinued Operations
o Held for sale criteria o Discontinued operations requirements
Case Study: Determining if IFRS 5 criteria are satisfied. Fair Value and Financial Instruments
▪ IFRS 13: Fair Value Measurement

Fair value hierarchy
o Steps to determine fair value
o Fair value in illiquid markets
o The grey areas and challenges of application for financial instruments that are thinly traded
Case Study: Determination of hierarchy rating; determination of highest and best use.

▪ IAS 32: Financial Instruments – Presentation o Distinction between debt and equity
Case Study: Distinguishing if a financial instrument is debt or equity.

▪ IAS 39 & IFRS 9: Financial Instruments – Classification and Measurement of Financial Assets and Liabilities
o Four categories of assets (now thee under IFRS 9)
o Business model test
o Cash flow characteristics
o IFRS 9 “own credit” controversy Case Study: Classifying financial instruments.

▪ IAS 39& IFRS 9: Financial Instruments – Impairment of Financial Assets
o Incurred loss model
o Expected loss model and core differences to US GAAP
o Development of key assumptions in loss model
o Practical implementation challenges

Accounting for Pensions
▪ IAS 19: Employee Benefits
o Defined benefit and defined contribution plans
o Current and past service costs
o Actuarial assumptions and treatment of actuarial gains and losses
Case Study: Comprehensive example on defined benefit scheme with actuarial gains and losses.

Group Accounting Matters
▪ IFRS 10: Consolidated Financial Statements
o Assessing control
o Principle and agent considerations
Case Study: Scenarios to assess control in a number of different scenarios where voting rights are less than 50%.

▪ IFRS 11: Joint Arrangements
o Types of joint venture arrangements
o Accounting treatment and adjustments required
Case Study: Scenario to determine if a structure is accounted for as a joint arrangement.

Accounting for Leases
▪ IAS 17: Leases
o Indicators of financial leases Case Study: Preparing an extract of financial statements for a finance lease.
▪ IFRS 16: Leases
o Challenges with the current standard
o Revised single model
o US GAAP dual model approach and key differences
o Impact on financial statements and debt covenants
Case Study: Numerical application and disclosure of the new leasing standard.

Accounting for Revenue
▪ IAS 18: Revenue o Sale of goods and services
Case Study: Group discussion and analysis of revenue determination under IAS 18.
▪ IAS 11: Construction Contracts
o Determining stage of completion
▪ IFRS 15: Revenue from Contracts with Customers
o Detailed review of the five step model
o Identification of the performance obligation
o Determining and allocating the transaction price
Case Study: Scenarios on applying the new five step model.