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 first prepared under IFRSs.

Nigerian publicly listed companies reporting under IFRSs for the first time in their 2012 financial statements must apply the IFRSs that are applicable on their reporting date (e.g. 31 December 2012) in order to both prepare their 2012 financial statements and to retrospectively restate their comparative period (2011) financial statements. Restatement requires an IFRS statement of financial position as of the beginning of the comparative period (1 January 2011), which may involve recognizing new assets and liabilities, derecognizing some assets and liabilities that were recognized under Nigerian 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.

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 exemptions in such areas as business combinations; fair value as deemed cost for certain assets; employee benefits; cumulative financial statement 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; decommissioning liabilities included in the cost of property; and leases.

A comprehensive case study is used, to walk through all aspects of first-time adoption leading to the issuance of the entity’s first IFRS financial statements. Our specialist instructors present real-life experiences in transitioning to IFRSs 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. As more guidance is released by the Financial Reporting Council of Nigeria and Securities and Exchange Commission of Nigeria, we will update our programme so that it provides up-to-date guidance on whether and when subsidiary companies need to adopt IFRSs, the process for reporting IFRS quarterly statements in the year of adoption, communicating progress on adopting IFRSs.

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 IFRSs communicated to stakeholders?

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

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

• With new IFRS standards mandatory for 2013 year ends, which version of IFRSs should a first-time adopter in 2012 be using?

• What must be done in order to use the hedge accounting rules of IAS 39 / IFRS 9?

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

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

Prerequisites

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Understanding of the fundamentals of IFRS and the accounting principles based on Nigerian standards will be beneficial.
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 statement of financial position (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
• Exemption for certain rate-regulated activities
• Mandatory Exceptions
• Use of estimates
• Derecognition of financial assets and financial liabilities
• Hedge accounting
• Non-controlling interests
• Presentation and Disclosure Requirements
• Specific Issues
• Accounting policy selection
• Fair value measurements at the date of transition to IFRSs
• 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 Government Loans (March 2012, effective 2013)
• Overview of the new and amended standards, which may be applied early, when transitioning to IFRS
• Managing the 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 IFRSs 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 IFRSs and avoid common pitfalls
• Determine the system modifications and other changes that will be required in order to implement IFRSs
• Gain the understanding required to develop an effective implementation plan for your company
• Consider specific issues relating to Nigerian GAAP conversion

Teaching Method

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• Live group instruction, cases, examples, group work, open discussions
• Description and explanation of IFRS technical requirements in clear and simple language
• Identification of the critical issues involved in the transition to IFRSs
• 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

Bring This Course In House

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To bring this course in-house please contact us and we will be pleased to assist.

Continuing Professional Education (CPE)

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24 hours

Venue

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All of our London 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 .