Why Attend
Today’s organizations are constantly seeking diversification and investment opportunities around the world. Therefore, these companies have to constantly rely on cross-border transactions. In order to properly recognize and account for such transactions, International Financial Reporting Standards (IFRS) have been adopted by more than one hundred countries to represent a set of high quality global accounting standards.
The “Certificate in Advanced IFRS” course takes a closer look at accounting standards and describes the accounting treatment and recognition rules for standards not covered in more basic IFRS courses. Consolidation, public-private partnerships, joint ventures, leases and revenue recognition are some of the complex topics addressed in this course. In addition, this course takes a look at employees’ end-of-service indemnity calculation requirements and allowance for doubtful trade receivables under IFRS 9.
Course Methodology
The course uses a mix of interactive techniques including brief presentations by the consultant, application of theories presented by the consultant, and group exercises to exchange experience and apply knowledge acquired throughout the course.
Course Objectives
By the end of the course, participants will be able to:
- Describe the process for preparing consolidated financial statements under IFRS
- Explain the difference between joint ventures and joint operations and distinguish the accounting treatment between them
- Determine the correct presentation and accounting for operators and grantors under public-private partnerships
- Appraise and properly account for revenue from contracts with customers and leases
- Challenge the computation of short-term employee benefits and employees’ end-of-service indemnity
- Apply professional judgment in applying IFRS for matters relating to employees’ end-of-service indemnity and allowance for doubtful trade receivables.
Target Audience
Professionals in the fields of accounting, finance and auditing as well as professionals seeking to enhance their international accounting knowledge from companies implementing IFRS as the standard of reporting.
Target Competencies
- Impairment for trade receivables
- Consolidation
- Financial reporting
- Accounting for public-private partnerships
- Applying IFRS
- Revenue recognition
- Lease accounting
Course Outline
- Accounting for financial assets: trade receivables and impairment (IFRS 9)
- Type of financial assets and investment securities
- Classification under IFRS 9: Amortized cost, Fair Value Through Profit or Loss (FVTPL), Fair Value Through Other Comprehensive Income (FVTOCI)
- Initial recognition of trade receivables
- Subsequent measurement of trade receivables
- Impairment of financial assets
- Simplified model for impairment of trade receivables
- Business combinations (IFRS 3) and consolidated financial statements (IFRS 10)
- The acquisition method
- Identifying the acquirer
- Defining “control”
- Determining the acquisition date
- Consolidation procedures
- Recognizing identifiable assets acquired
- Recognizing liabilities assumed
- Measuring and recognizing non-controlling interest in acquiree
- Measuring the consideration transferred
- Acquisition related costs
- Recognizing and measuring goodwill
- Intercompany transactions and balances
- Joint ventures and joint operations (IFRS 11)
- Definition of joint control
- Types of joint arrangements
- Joint operations
- Accounting by parties to a joint operation
- Joint ventures
- Accounting by parties to a joint venture
- Separate financial statements of the parties
- Accounting for public-private partnerships and service concession agreements (IFRIC 12 and IPSAS 32)
- Scope of service concessions agreements: IFRIC 12
- Features of such arrangements
- Accounting treatment by operator
- Recognition as financial asset
- Recognition as intangible asset
- Recognition and measurement of arrangement consideration
- Treatment of resurface obligations
- Borrowing costs incurred by operator
- Accounting treatment by grantor: IPSAS 32
- Recognition and measurement of a service concession asset
- Recognition and measurement of liabilities
- 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
- Single obligation versus distinct obligations
- Examples on single and separate obligations
- Step 3: Determining the transaction price
- Accounting for variable consideration
- Example on variable consideration calculation
- Step 4: Allocating the transaction price to the performance obligations in the contract
- Example on allocation transaction price for complex transaction
- Step 5: Recognizing revenue when the entity satisfies a performance obligation
- Performance obligations satisfied at a point in time
- Performance obligations satisfied over a period of time
- Treatment of loyalty programs, customer incentives and warranties
- Agent vs. principal transactions
- Transition requirements to IFRS 15
- Leases (IFRS 16)
- Reasons for transition from IAS 17 to IFRS 16
- Recognition exemptions: expensing lease payments
- How will the lease of small value items be affected
- Identifying a lease transaction
- Lease term
- Separating components of lease contract
- Accounting by lessees
- Measurement of right-of-use asset
- Measurement of lease liability
- Accounting by lessors
- Finance lease criteria
- Initial recognition by lessor
- Operating lease treatment
- Effective date and transition
- Employee benefits and end-of-service indemnity (IAS 19)
- Short-term employee benefits: salary, bonus and others
- Post-employment benefits
- Defined contribution plans
- Defined benefit plans
- Accounting for plan obligations
- Recognition of actuarial assumptions
- Accounting for plan assets
