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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In recent years, IFRS has been evolving from the traditional ‘historical cost’ measurement principle towards a model based more on ‘fair value’. Depending on the type of asset, fair value may be based on quoted market prices, appraisals, discounted cash flow, net realizable value, replacement cost or indexed cost.

Preparers and users of IFRS financial statements need to understand the specific measurement requirements for each type of asset, and the related impact on recognized profit and loss. These requirements include complex annual impairment tests and the resulting write-down of asset values.

This two-day course provides comprehensive coverage of IFRS asset measurement rules, including the requirements and alternatives in IFRS 1 that apply to entities adopting IFRS for the first time. Delegates are also brought up-to-date on progress of the IASB’s project on fair value measurement guidance.

The program answers questions such as:

• What are the various methods and options that are permitted for asset measurement?

• How is the discounted cash flow technique applied to finance lease accounting and impairment testing?

• What asset measurement requirements and alternatives should be considered by IFRS first-time adopters?

• How are financial assets, including complex instruments, classified and measured?

• When must fair values be determined for acquired and internally generated intangible assets?

• What are the latest IASB developments regarding asset measurement?

Prerequisites

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Knowledge of basic accounting for assets
No advance preparation is necessary to attend this course

Course Level

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Overview

Topics

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• Explanation of Various Measurement Bases
• Historical cost
• Current cost
• Realizable value
• Present value
• Fair Value
• General principles
• Hierarchy
• Inventory Measurement (IAS 2)
• Initial cost
• Valuation methods
• Inventory write-downs
• Interim period valuation considerations
• Property, Plant & Equipment Measurement (IAS 16)
• Initial cost
• Capitalization of borrowing costs (IAS 23)
• Decommissioning costs/asset retirement obligations
• Subsequent expenditures
• Effect of component accounting
• Depreciation, including changes in depreciation
• Revaluation model
• Leased Asset Measurement (IAS 17)
• Initial recognition
• Measurement considerations over the term of the lease
• Valuation effects of changes in lease terms
• Residual values
• Other end-of-lease-term considerations
• Intangibles Measurement (IAS 38)
• Purchased intangibles
• Internally generated intangibles
• Research and development
• Initial cost
• Subsequent expenditures
• Amortization
• Revaluation model
• Financial Instruments Measurement (IAS 32, 39 and IFRS 9)
• Initial recognition
• Types of financial instruments and valuation requirements
• Determining value
• Using models
• Impairment
• Investment Property Measurement (IAS 40)
• Initial recognition
• Valuation options and considerations
• Measurement at transfer dates
• First-time Adoption of IFRS (IFRS 1)
• Measurement requirements
• Allowed alternatives
• Mandatory exemptions
• Measurement of Assets Acquired in a Business Combination (IFRS 3)
• Identifiable assets
• Intangible assets
• Goodwill
• Adjustments after the initial accounting is complete
• Measurement of Non-current Assets Held for Sale (IFRS 5)
• Identification of assets held for sale and disposal groups
• Initial measurement
• Valuation at subsequent dates
• Effect of changes in disposal group component assets
• Measurement of Significant Influence and Joint Control Investments
• Joint venture assets (IAS 31)
• Impact of the revised IFRS on joint ventures
• Investments in associates (IAS 28)
• Impairment of Assets (IAS 36)
• Identifying indication of impairment
• Determining cash generating units
• Value in use and fair value less costs to sell
• Measuring impairment
• Recognition of impairment
• Allocating losses to assets
• Subsequent changes in valuation
• Goodwill and other indefinite-lived intangible assets
• Treatment of corporate assets
• IFRIC 10 Interim Financial Reporting and Impairment
• Asset Valuation Disclosures
• New Developments
• IFRS 9 Financial Instruments: Classification and Measurement (November 2009)
• IFRIC18: Transfers of Assets from Customers (January 2009, effective July 2009)
• IASB Exposure Draft: Fair Value Measurement (May 2009)
• IASB Exposure Draft: Financial Instruments: Impairment (November 2009)

Course Benefits

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• Apply the various methods permitted for the measurement of assets
• Implement the discounted cash flow techniques required when accounting for finance leases (IAS 17) and impairment testing (IAS 36)
• List the asset measurement requirements and alternatives for first time adopters of IFRS (IFRS 1)
• Classify and measure financial assets (IAS 39)
• Identify and explain the options available for measuring assets, including:
• Inventories (IAS 2)
• Property, plant and equipment (IAS 16)
• Investment property (IAS 40)
• Non-current assets held for sale (IFRS 5)
• Determine fair values for acquired and internally generated intangible assets (IAS 38)
• Recognize and measure impairment using the ‘cash-generating units’ approach (IAS 36)
• Apply the measurement requirements for assets acquired in a business combination (IFRS 3)
• Summarize current IASB discussions concerning measurement bases on initial recognition

Teaching Method

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• Live group instruction
• Explanation and demonstration of valuation models, with practical examples to illustrate the criteria for each asset category
• Presentation and discussion of both real-world and model financial statements and disclosures
• A case study to lead delegates through the step-by-step requirements for impairment testing of asset values
• Active 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.