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 the 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
