Course detail

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Contents

• Introduction
• Prerequisites
  
• Course Level
  
• Topics
  
• Course Benefits
  
• Teaching Method
  
• Continuing Professional Education
  
• Venue
  
  

Introduction

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This one-day course provides an in-depth look at IFRS and US GAAP accounting requirements relating to discontinued operations and restructurings. The principal issues relating to these topics concern their definition, accounting recognition, measurement, presentation and disclosure. These areas have been subject to recent changes and will also be affected by the new business combinations standard.

This program provides coverage of both IASB and FASB pronouncements, along with relevant US SEC guidance, so that participants will become familiar with the underpinnings of both current and future accounting in these areas. US GAAP guidance is primarily found in FASB Statement No. 144 Accounting for the Impairment or Disposal of Long-Lived Assets, Statement 146 Accounting for Costs Associated with Exit or Disposal Activities, and relevant portions of FASB Statement No. 141 Business Combinations. IASB pronouncements on the topics include IFRS 3 Business Combinations, IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, and relevant portions of IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

Utilizing numerous examples, case studies, real-world financial statements, IFRS-US GAAP reconciliations, model financial statements and disclosures, our expert instructors thoroughly illustrate accounting for discontinued operations and restructurings. The program answers questions such as:

• What activities qualify for accounting treatment as discontinued operations?

• What are disposal groups and how should the assets and liabilities in such groups be measured and recognized?

• How are discontinued operations presented in annual and interim financial statements?

• What disclosures are required for restructurings and discontinued operations?

• Which criteria must be met in order to establish a provision for restructuring?

• How are costs identified and measured during the restructuring period?

• What are the special considerations that apply to restructurings associated with business combinations?

• What changes in accounting for these activities are anticipated in the near future?

• What are the similarities and differences between IFRS and US GAAP in accounting for restructurings and discontinued operations?

Prerequisites

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Basic understanding of accounting principles based on any national standards. No advance preparation is required for this course.

Course Level

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Intermediate

Topics

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• Discontinued Operations
• Scope of the Standards
• Assets and operations
• Exclusions
• Definitions and Identification (IFRS and US GAAP)
• Non-current assets held for sale
• Disposal groups
• Discontinued operations
• Components to include and exclude
• Classification Requirements
• Held for sale criteria
• Exceptions and grey areas
• Measurement
• At initial classification
• At first balance sheet date
• In subsequent periods
• Changes in group assets and liabilities
• Gain/loss recognition
• Financial Statement Presentation
• Balance sheet
• Income statement
• Cash flow statement
• Income tax considerations
• Disclosure
• Interim Reporting
• Operations Subsequently Retained
• Measurement issues
• Presentation and disclosure
• Restructurings
• Recognition (IFRS and US GAAP)
• Activities that qualify as restructuring
• Timing of recognition
• Criteria for recognition
• Provision Measurement (IFRS and US GAAP)
• Initial valuation
• Methods and considerations
• Subsequent period adjustments
• Identification and Accounting for Specific Costs
• Termination benefits (IFRS and US GAAP)
• Contract termination costs
• Other costs
• Financial Statement Presentation and Disclosure
• Restructurings and Discontinued Operations Associated with Business Combinations
• IFRS
• US GAAP
• Impact of the New Business Combinations Standard

Course Benefits

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• Understand how to identify activities that qualify for accounting treatment as discontinued operations
• Learn how the assets and liabilities in disposal groups should be measured and recognized
• Become familiar with the criteria that must be met in order to establish a provision for restructuring
• Appreciate the special considerations that apply to restructurings associated with business combinations
• Identify and measure costs incurred during the restructuring period
• Apply the requirements for presenting discontinued operations in the annual and interim financial statements
• Comply with the restructuring and discontinued operations disclosure requirements of IFRS and US GAAP
• Distinguish the differences between IFRS and US GAAP in accounting for restructurings and discontinued operations
• Be up-to-date with latest developments regarding accounting for restructuring and discontinued operations

Teaching Method

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• Live, interactive group instruction
• Illustrative examples of the various activities that qualify for accounting treatment as discontinued operations
• Case studies to illustrate accounting for restructuring provisions and discontinued operations
• Numerous examples to illustrate the special considerations that apply to restructurings associated with business combinations
• Examples of costs to be identified and measured during the restructuring period
• Reconciliations between IFRS and US GAAP to review the differences that apply to restructurings and discontinued operations
• Presentation and discussion of model financial statement disclosures
• Review of real-world financial statements illustrating presentation and disclosures
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Continuing Professional Education (CPE)

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8 hours

Venue

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All of our Dubai seminars take place in 4 star professional conference facilities, usually in city-centre downtown hotels like the Marriott, Sheraton or Hilton brands.

Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available.

Coffee and lunch will be provided.