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 two-day course provides an in-depth look at IAS 19 Employee Benefits and at IFRS 2 Share-based Payment, together with their related Interpretations. IFRS 2 provides guidance on accounting for share options and other share-based payment transactions. IAS 19 covers accounting for pension costs and other employee benefits. These rules are complex and controversial and are subject to changes in the near future. The program covers pension accounting (defined benefit and defined contribution pension plans) and accounting for other employee benefits, including other post-employment benefit plans, deferred compensation, employee termination plans and short-term employee benefits. IFRS 2 is controversial, in part because the standard requires entities to recognize employee options at grant-date fair value and to amortize that cost to income. A fair valuing option requires the use of complex option-pricing models, which are discussed in this course. In addition to comprehensive coverage of IFRS 2, this program includes discussion of applicable IFRIC interpretations.The course also covers accounting for share-based payments used to acquire goods and services.

This course answers questions such as:

• What are the components of net periodic pension cost for defined benefit plans?

• How is the ‘corridor’ method for amortizing unrecognized gain/loss applied?

• When is a pension asset or liability recognized in the statement of financial position and how is it measured?

• What are the recognition rules for deferred compensation, bonus arrangements, compensated absences, and other short-term benefits?

• When are share-based payment arrangements recognized and how are they measured and disclosed?

• What are the latest developments regarding employee benefits and share-based payments?

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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Overview

Topics

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• Treatment of Short-term Employee Benefits
• Wages, salaries, etc.
• Compensated absences
• Fringe benefits
• Benefits in kind
• Profit sharing and bonus plans
• Pension Plans
• Classification of pension plans
• Accounting for defined contribution pension plans
• Accounting for defined benefit plans
• Determining current pension expense and related assets and liabilities
• Utilizing the ‘corridor’ method to amortize actuarial gains and losses
• Settlements and curtailments
• State plans
• Business combination recognition requirements
• Disclosure requirements
• Illustrative presentations
• Methods available to first-time adopters
• Other Post-employment Benefit Plans
• Termination Benefits
• Deferred Compensation
• Scope of IFRS 2 Share-based Payment
• Accounting for Share-based Payment
• Treatment of vesting conditions, modifications, cancellations and settlements
• Equity-settled share-based payment transactions
• Cash-settled share-based payment transactions
• Transactions with settlement alternatives
• Deferred tax considerations
• Disclosure requirements
• Illustrative presentations
• Measuring the Fair Value of Equity Instruments
• Valuation techniques
• Inputs to an option pricing model
• Selection of an option pricing model (Black-Scholes, Monte Carlo, other models)
• Disclosure requirements
• Illustrative presentations
• Transition and Methods Available to First-time Adopters
• Latest Developments
• IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
• Amendments resulting from IASB Improvements Projects
• Amendments to IFRS 2 Group Cash-settled Share-based Payment Transactions (June 2009, effective January 2010)
• ED/2010/3 Defined Benefit Plans: proposed amendments to IAS 19 (April 2010)
• Brief comparison to US GAAP

Course Benefits

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• Understand the impact of applying IAS 19 on accounting for retirement-benefit costs
• Learn the steps to ascertaining periodic pension cost for defined benefit plans
• Appreciate the impact of the ‘corridor’ method for amortizing unrecognized gain/loss
• Determine how to calculate the pension asset/liability in the statement of financial position
• Understand accounting for short-term benefits including compensated absences (e.g. holiday and sick time) and fringe benefits
• Apply recognition rules to deferred compensation, bonus and profit-sharing arrangements
• Understand the pension asset and liability recognition requirements for business combinations
• Become familiar with the transition exception available to entities that are adopting IFRS
• Understand the impact of applying IFRS 2 on accounting for share-based payment transactions
• Appreciate the available option-pricing models and the effect of market conditions for determining the fair value of equity instruments
• Calculate the impact of changes in fair value during the vesting period
• Account for modifications, cancellations and settlements of share-based payment transactions
• Apply the requirements for exchanging share-based payment for goods and services
• Distinguish cash-settled transactions from transactions with cash alternatives
• Comply with the disclosure requirements of IAS 19 and IFRS 2
• Be up-to-date with latest developments regarding employee benefits and share-based payments

Teaching Method

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• Live group instruction
• Illustrative examples of the various types of pension plans and their accounting issues
• Case study to illustrate defined-benefit pension accounting
• Numerous examples to illustrate classification and accounting for other benefits
• Detailed coverage of IFRS 2, with case studies to illustrate classification and accounting for share-based payments
• Examples of measurement of annual compensation to be recognized
• Presentation and discussion of model financial statement disclosures
• Review of real-world financial statements illustrating presentation and disclosures
• Interactive participation is encouraged
• 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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16 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.