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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IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the recognition, measurement and disclosure rules that must be followed when financial statements are initially prepared under IFRS.

For example, entities adopting IFRS for the first time in 2010 must apply the IFRSs that are applicable on their reporting date (e.g. 31/12/2010) in order to both prepare their 2010 financial statements and to retrospectively restate their comparative period (2009) financial statements. Restatement requires an IFRS statement of financial position as of the beginning of the comparative period (1/1/09), which may involve recognizing new assets and liabilities, de-recognizing some assets and liabilities that were recognized under previous GAAP, and reclassifying and re-measuring various assets and liabilities. There are exceptions to the general principle of retrospective restatement, some of which are available as options, whereas others are mandatory.

Since the issuance of IFRS 1, the body of knowledge comprising IFRS has increased significantly in volume and complexity. Entities adopting IFRS for the first time will need to incorporate these changes into their first IFRS financial statements, including any years being presented on a comparative basis.

Using real-world examples and case studies, this two-day workshop provides a comprehensive look at the complex issues facing first-time adopters. Coverage includes available strategies for the use of voluntary exceptions in such areas as business combinations; fair value as deemed cost; employee benefits; cumulative translation differences; compound financial instruments and designation of previously recognized financial instruments; assets and liabilities of subsidiaries, associates and joint ventures; share-based payment transactions; insurance contracts; decommissioning liabilities included in the cost of property, and leases.

A comprehensive case study is utilized, to walk through all aspects of first-time adoption leading to the issuance of the entity’s first IFRS financial statements. Our expert instructors present real-life experiences in transitioning to IFRS and provide implementation recommendations. Strategies and guidance for establishing IFRS accounting policies are also discussed.

Coverage includes the IASB’s Implementation Guidance and Basis for Conclusions, with application of the transition requirements and alternative treatments demonstrated via practical case studies and examples.

The program answers questions such as:

• What are the timing, transition, recognition, measurement, presentation, and disclosure requirements of IFRS 1?

• How is the impact of first-time adoption of IFRS communicated to stakeholders?

• What are the available policy options and their short-term and long-term consequences?

• How can the costs and benefits of various courses of action be determined?

• What must be done in order to use the hedge accounting rules of IAS 39?

• In what ways will systems require modification in order to implement IFRS?

• What are the most common pitfalls that occur during transition to IFRS and how can they be avoided?

Prerequisites

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

Course Level

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Overview

Topics

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• General Principles of IFRS 1 First-time Adoption of International Financial Reporting Standards
• Recognition & measurement
• Opening IFRS balance sheet
• Retrospective approach and exceptions
• Strategies for the Use of Optional Exemptions from Other IFRSs
• Business combinations
• Fair value as deemed cost
• Employee benefits
• Cumulative translation differences
• Compound financial instruments
• Investments in subsidiaries, jointly controlled entities and associates at deemed cost
• Assets and liabilities of subsidiaries, associates and joint ventures
• Designation of previously recognized financial instruments
• Share-based payment transactions
• Insurance contracts
• Decommissioning liabilities included in the cost of property, plant and equipment (IFRIC 1)
• Leases – rights of use (IFRIC 4)
• Fair value measurement of financial assets or financial liabilities at initial recognition
• Service concession arrangements
• Borrowing costs
• Transfers of assets from customers
• Extinguishing financial liabilities with equity instruments
• Disclosures about financial instruments – short-term exemption from IFRSs
• Mandatory Exceptions
• De-recognition of financial assets and financial liabilities
• Hedge accounting
• Use of estimates
• Non-controlling interests
• Presentation and Disclosure Requirements
• Specific Issues
• Accounting policy selection
• Fair value measurements at the date of transition to IFRS (market values, fair values, discounted cash flow, etc.)
• Impairment testing at the transition date (goodwill testing)
• Consolidations, associates & joint ventures
• Preparing the initial comparative IFRS financial statements
• Requirements for the use of hedge accounting
• Reporting liabilities (deferred tax, provisions, leases, pensions, etc.)
• Press releases and interim reporting
• Amendment to IFRS 1 First-time Adoption of IFRS and IAS 27 Separate and Consolidated Financial Statements, relating to cost of an investment on first-time adoption (May 2008, effective July 2009)
• Managing the IFRS Transition Process
• Planning the project
• Involving the whole business
• Staff training
• Implementing the changes
• Collecting the data
• Operating parallel reporting systems

Course Benefits

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• Apply the complex requirements of IFRS 1
• Understand the available policy options and their short-term and long-term consequences
• Communicate the impact of first-time adoption of IFRS to stakeholders
• Discern the costs and benefits of various courses of action
• Know what must be done in order to use the hedge accounting rules of IAS 39
• Implement practical strategies for managing the transition to IFRS and avoid common pitfalls
• Determine the system modifications and other changes that will be required in order to implement IFRS
• Gain the understanding required to develop an effective implementation plan for your company

Teaching Method

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• Live group instruction
• Description and explanation of IFRS technical requirements in clear and simple language Identification of the critical issues involved in the transition to IFRS
• Extensive use of case studies, model financial statements and checklists with practical application of the complex requirements of IFRS 1
• 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.