Practical IFRS Conversion Workshop

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