Financial Reporting Standards provide a guide on how to present various elements in the principal statements in order to permit comparability, relevance and reliability of the financial statements. International accounting standards board and National Boards of various countries requires entities to apply IFRS in recognition, measurement, presentation and disclosures of various items in the financial statements. The standards keep on changing due to updates and new standards such as IFRS 9 and IFRS 15 with effect from 1^st January, 2018. Having Professional practitioners and teachers with updates of IFRS application is imperative for professionals dealing with accounting and finances of business entities. 

Course Objective
To provide participants with an up to date, practical and detailed knowledge of the new International Financial Reports Standard relevant to business entities and how they are interpreted and applied

Learning Outcome

On completion of this training candidates should be able to:

• Understand, explain and apply the structure of the international professional and conceptual framework of financial reporting.
• Apply relevant international financial reporting standards to key elements of financial statements
• Identify and apply disclosure requirements for entities relating to the presentation of financial statements and notes
• Prepare financial statements of entities including subsidiaries, associates and joint arrangements using IFRS

Course Methodology

Lectures, Discussion and Practical Preparation of Financial Statements.

Course Contents

Module 1: Sources of Authority            

• The International Accounting Standards Board (IASB) and the regulatory framework
• National Sources of Authority
• Elements of Financial Statements

Module 2: Elements of Financial Statements

1. Revenue recognition (IFRS 15)

• Apply the principles of revenue recognition
• Apply the acceptable methods for measuring progress towards complete satisfaction of performance obligations.
• Apply the criteria for the recognition of contract costs
• Specifically account for the following types of transactions:
• Principal versus agent;
• (Repurchase agreements;
• Bill and hold arrangements
• Consignment agreements
• Account for different types of consideration (including variable consideration) and where a significant financing component exists in the contract.
• Prepare financial statement extracts for contracts with multiple performance obligations, some of which are satisfied over time and some at a point in time.

2. Property, plant and equipment (IAS 16)

• Apply IAS 16 to measure PPE at initial & subsequent recognition
• Account for bborrowing costs incurred for PPE loan
• Understand subsequent expenditures that should be capitalised, including appropriate borrowing costs.
• Compute the impact on the financial statements when property, plant and equipment is measured under revaluation model and a revaluation to fair value is made
• Account for gains and losses on the disposal of re-valued assets.
• Calculate depreciation on: – revalued assets, and – assets that have two or more major items or significant components.
• Apply the provisions of accounting standards relating to government grants and government assistance in relation to property, plant and equipment (IAS 20).
• Non-current assets are classified as held for sale, either individually or in a disposal group (IFRS 5: Non-current assets held for Sale and Discontinued Operations).
• Apply the requirements of IFRS Standards to investment properties (IAS 40).

3. Impairment of assets (IAS 36)

• Identify, circumstances which indicate that the impairment of an asset may have occurred.
• Describe what is meant by a cash-generating unit.
• Define and calculate the recoverable amount of an asset and any associated impairment losses.
• State the basis on which impairment losses should be allocated, and allocate a given impairment loss to the assets of a cash generating unit.
• Account for the reversal of an impairment loss that was recognised in a previous period.

4. Leases (IAS 17)

• Account for right of use assets and lease liabilities in the records of the lessee
• Explain the exemption from the recognition criteria for leases in the records of the lessee.
• Account for sale and leaseback transactions in the financial statements of lessees.
• Explain the distinction between operating leases and finance leases from a lessor perspective.
• Account for operating leases and finance leases in the financial statements of lessors.

5. Intangible assets and goodwill (IAS 38)

• Intangible assets and goodwill
• Discuss the nature and possible accounting treatments of both internally generated and purchased goodwill.
• Distinguish between goodwill and other intangible assets
• Define the criteria for the initial recognition and measurement of intangible assets.
• Explain the principle of impairment tests in relation to purchased goodwill.
• Identify the circumstances in which a gain on a bargain purchase (negative goodwill) arises, and its subsequent accounting treatment.
• Describe and apply the requirements of IFRS Standards to internally generated assets other than goodwill (e.g. research and development).
• Describe the method of accounting specified by the IASB for the exploration for and evaluation of mineral resources.

6. Inventories (IAS 2)

• Measure and value inventories based on IAS 2.

7. Financial instruments (IFRS 9)

• Explain the definition of a financial instrument.
• Determine the appropriate classification of a financial instrument, including those instruments that are subject to ‘split classification’ – e.g. convertible loans.
• Discuss and account for the initial and subsequent measurement (including impairment in the case of financial assets) of financial assets and financial liabilities in accordance with applicable IFRS Standards and the finance costs associated with them.
• Discuss the conditions that are required for a financial asset or liability to be de-recognised.
• Explain the conditions that are required for hedge accounting to be used.
• Prepare financial information for hedge accounting purposes, including the impact of treating hedging arrangements as fair value hedges or cash flow hedges.
• Describe the financial instrument disclosures required in the notes to the financial statements.

8. Provisions, contingent assets and liabilities (IAS 37)

• Explain why an accounting standard on provisions is necessary – give examples of previous abuses in this area.
• Define provisions, legal and constructive obligations, past events and the transfer of economic benefits.
• State when provisions may and may not be made, and how they should be accounted for.
• Explain how provisions should be measured.
• Define contingent assets and liabilities – give examples and describe their accounting treatment. Identify and account for: – Onerous contracts – Environmental and similar provisions

9. Employment and post-employment benefits (IAS 19)

• Describe the nature of defined contribution, and defined benefits schemes.
• Explain the recognition and measurement of defined benefit schemes in the financial statements of contributing employers.
• Account for defined benefit schemes in the financial statements of contributing employers.

10. Tax in financial statements (IAS 12)

• Account for current tax liabilities and assets in accordance IFRS Standards.
• Apply IAS 12 to account for deferred Tax
• Calculate and record deferred tax amounts in the financial statements.

11. The effects of changes in foreign currency exchange rat

• The effects of changes in foreign currency exchange rates
• Considering the reporting and functional currency in reporting

12. Agriculture (IAS 41)

• Recognise the scope of IFRS Standards for agriculture.
• Discuss the recognition and measurement criteria including the treatment of gains and losses, and the inability to measure fair value reliably.
• Identify and explain the treatment of government grants, and the presentation and disclosure of information relating to agriculture.
• Report on the transformation of biological assets and agricultural produce at the point of harvest and account for agriculture related government grants.

13. Share-based payment (IFRS 2)

• Understand the term ‘share-based payment’.
• Discuss the key issue that measurement of the transaction should be based on fair value. Explain the difference between cash settled share based payment transactions and equity settled share based payment transactions.
• Identify the principles applied to measuring both cash and equity settled share-based payment transactions.
• Compute the amounts that need to be recorded in the financial statements when an entity carries out a transaction where the payment is share based.

14. Exploration and evaluation expenditures (IFRS 6)

• Outline the need for an accounting standard in this area and clarify its scope.
• Give examples of elements of cost that might be included in the initial measurement of exploration and evaluation assets.
• Describe how exploration and evaluation assets should be classified and reclassified.
• Explain when and how exploration and evaluation assets should be tested for impairment

15. Fair value measurement (IFRS 13)

• Explain the principle under which fair value is measured according to IFRS Standards.
• Identify an appropriate fair value measurement for an asset or liability in a given set of circumstances.
• Discuss ‘fair presentation’ and the accounting concepts/principles.

Module 3: PRESENTATION OF FINANCIAL STATEMENTS AND ADDITIONAL DISCLOSURES (IAS 1)

• Sstatement of financial position
• The statement of profit or loss and other comprehensive income and
• The statement of changes in equity

Module 4: PREPARATION OF EXTERNAL REPORTS FOR COMBINED ENTITIES AND JOINT ARRANGEMENTS

• Preparation of group consolidated external reports
• Business combinations – intra-group adjustments
• Business combinations – fair value adjustments
• Business combinations – associates and joint arrangements
• Complete disposal of shares in subsidiaries

Module 5: Analyzing and Interpreting the Financial Statements using various ratios and metrics.

Target Group

• Accounting Professionals
• Auditors
• Financial Executives
• Financial Analysts
• Forensic Investigators
• Investment Bankers

Bankers and all Professionals aspiring to gain knowledge in financial reporting standards