

Course Outline
DAY ONE
IABS Current Work
- Current agenda topics
- New IFRSs and IFRIC views
- Changes to IFRS
- Challenges faced in the implementation of IFRSs – Discussion
Group discussion: Challenges you are facing in your organisation when implementing the existing IFRSs and how the new changes could benefit
A New Leases Standard
- Overview of current standard
- Changes proposal
- Definition of a lease – a lease and a service
- Measurement of lease liabilities
- Cash flow presentation
- Disclosure and Transition
Group Work: Benefits and application of the new standard – issues and Challenges
Financial Instruments
- Classifying financial assets
- Initial and subsequent measurement of financial instruments
- Financial asset impairment
- De recognition
- Difference between equity and liabilities
- Accounting for financial liabilities
IFRS 9: Financial Instrument
- A single and integrated standard
- Classification and measurement. Comparison with IAS 39
- Classification and measurement approach
- Business model for managing financial assets
- Contractual cash flow
- Financial liabilities in IFRS 9
- Own credit
Case study / Group Work: Assessing significant increases in credit risk since initial recognition and Recognition and Measurement of expected credit losses
Annual Improvements to IFRS. Amendments
- IFRS 1 – First Time Adoption: Meaning of “effective IFRSs”
- IFRS 3 – Business Combinations:
- Scope exception for joint ventures
- Accounting for contingent consideration in a business combination
- IFRS 8 – Operating Segments:
- Aggregation of operating segments
- Reconciliation of the total of the reportable segments’ assets to the entity’s assets
- IFRS 40 – Investment Property: Interrelationship between IFR 3 and IAS 40 when classifying property as investment property or owner-occupied property
IFRS 10. Consolidated Financial Statements
- Definition of control – new approach
- Exposure to variable returns – examples
- Meaning of power
- Changes from IAS 27 (control) and SIC 12 (risks and rewards)
- Relevant activities – definition and examples
- Potential voting rights – unexercised options and warrant
- Protective rights – definition and examples
- Substantive rights – description and examples
- Franchise agreements
- Options and warrants – in and out of the money
- Business purpose and exit strategy
- Typical characteristics of an investment entity
- Exception to consolidation: Fair Value through P/L required
- Treatment
- Parents of an investment entity
- Change in investment entity status
- Amendments to IFRS 10, IFRS 12 and IAS 28 – investment entities
- And consolidation exception
- Participant discussion of when control exists
Examples from published accounts
DAY TWO
Impairment of Financial Assets
- IAS 39 – recap of requirements
- Incurred loss model – consequences of financial crisis
- Assets carried at amortised cost
- Available for sale assets and complications
- Assets carried under cost exemption
- IFRS 9, expected loss approach – overview
- Measuring expected credit losses – present value measurement
- Impairment at initial recognition
- Stages 1, 2 and 3 – assessment of credit deterioration
- 12-month expected credit losses and lifetime expected losses
- Effects of changes in credit risk
- Meaning of low credit risk
IFRS 15. Revenue from Contract with Customer
- Problems with existing requirements under IAS 11 & 18
- Withdrawal of IFRICs 13 and 15
- Overview of IFRS 15 – 5-step approach
- Identifying the contract:
- Goods and services
- Payment terms
- Probability assessment of collection of consideration
- Combining contracts
- Contract modifications – separate contract?
- Performance obligations:
- Distinct goods and services and examples
- Bundles of goods and services
- Series of distinct goods and services
- Satisfaction of performance obligation over time or at a point in time
- Customer control of an asset
- Indicators of transfer of control of asset
- Conditions for performance obligation satisfied over time
- Measuring progress for performance obligations satisfied over time
- Recovery of costs incurred
- Transaction price:
- Variable consideration including constraining estimates
- Significant financing components
IFRS 15. Revenue Recognition (continued)
- Consideration payable to a customer
- Measurement of refund liabilities
- Allocation of price to performance obligations:
- Relative stand-alone selling price basis
- Estimates of stand-alone selling prices
- Allocation of discounts
- Contract costs – when can an asset be recognised?
- Disclosure requirements:
- Disaggregation into categories
- Descriptions of performance obligations
- Significant judgements applied
- Software and telecoms industries
- Examples:
- Sales with right of return
- Warranties
- Principal or agent
- Participant case studies – identifying performance obligations and
- Determining pattern of revenue recognition
- In practice, what will change?
- Effective date – Jan 2017
- Transition requirements
Other IFRS changes and Exposure Drafts
- IFRS 14, Regulatory Deferral Accounts
- Restriction to first-time IFRS adopters
- Meaning of regulatory deferral account balance
- Differences from other IFRS
- IAS 16 & IAS 38 – amendments to depreciation and amortisation
- Prohibition on methods linked to revenue
- IFR3 and IAS 40 amendments – businesses and investment properties
- IAS 24 Amendments – Related Party disclosures – key management
- Personnel service
- IAS 34, Interim Financial Reporting – disclosure ‘elsewhere in financial Report’
- IAS 36 Amendments – recoverable amount disclosures
- Interpretation of IAS 37
- Interpretation of IAS 37
- ED Proposed Amendments to IFRS 2
- ED Proposed Amendments to IAS 7, Statement of Cash Flows – Disclosure
- Initiative
- Issues raised by regulators, FRC Corporate Reporting Review 2014
- Common areas of challenge by FRC
Course Materials
It is very important to analyze the need for Training along with the level of knowledge you require. This session give you a liberty to choose the modules you need, discuss it with the trainer how you want to be delivered, decide the place at your convenience and allocate number of hours to solve your problem. This does not include any development as a consulting but will include solution if you are facing a particular problem.