IFRS for the Real Estate Sector (2 days)

Introduction

This face to face IFRS course is available as a virtual, online training! View the details of the Virtual classroom or our Virtual Classroom schedule to see what else is being delivered live in our online classrooms.

This two-day course examines international financial reporting issues and their effect on real estate entities.

Our specialist instructors discuss the critical issues that go beyond mere number-crunching and explain, clearly and simply, the way the real estate sector conducts and shapes its accounting and reporting practices in accordance with IFRS Standards.

By reference to accepted accounting practices in the sector, delegates leave this course with practical knowledge of the wide spectrum of principle-based IFRS Standards that are applicable to the real estate sector. Participants will, for example, learn how to relate the standards on property, plant and equipment, leases, revenue, business combinations and investment property to leased or sold assets. The program also covers the treatment of investment projects, related borrowing costs and marketing, sales, development and construction expenditures, the appropriate basis for investment property valuation, and disclosure requirements and other issues that are unique to the real estate sector.

This valuable course answers questions such as:

• What are the accounting requirements for typical real estate lease, property, and investment property activities?
• What is required under IFRS 16 Leaseswhen accounting by lessors and lessees?
• How are lease contracts analysed for accounting purposes?
• When are lease incentives, service costs and embedded derivatives recognized and how are they measured?
• How does IFRS 15 Revenue from Contracts with Customersimpact on real estate transactions?
• How does IFRS 9 Financial Instrumentsimpact on mortgages, traded debt, and other financing instruments used in the real estate market?

Learning Objectives

• Understand the basic principles of IFRS Standards
• Establish accounting policies where specific guidance does not exist
• Learn practical answers to typical real estate questions on leases, property, plant and equipment and investment property
• Be able to analyse lease contracts and accurately account for lease incentives, service costs and embedded derivatives
• Understand the new IFRS 15 Revenue model
• Understand the proposed lease standard form the lessor and lessee view
• Apply “best practices” and industry recommendations within the real estate sector

Who Should Attend

Preparers, auditors and analysis in the real estate sector who need to understand the application of IFRS.

Topics

• Overview and IFRS Conceptual Framework- General Principles and Standards
• IAS 1 Presentation of Financial Statements
• IAS 2 Inventories
• IAS 7 Statement of Cash Flows
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
• IAS 10 Events after the Reporting Period
• IAS 12 Income Taxes
• IAS 16 Property, Plant and Equipment
  • Cost
  • Component approach
  • Depreciation method and period
  • Assets under-development
  • Cost model vs. revaluation model
• IAS 20 Government Grants and Disclosure of Government Assistance
• IAS 23 Borrowing Costs
• IAS 24 Related Party Disclosures
• IAS 28 Investments in Associates and Joint Ventures
• IAS 34 Interim Financial Reporting
• IAS 36 Impairment of Assets
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets
• IAS 38 Intangible Assets
• IAS 40 Investment Property
  • Definition of investment property
  • Initial measurement
  • Directly attributable expenditures
  • Cost model vs. revaluation model
  • Determination of fair value
  • Presentation of changes in fair value
• IFRS 1 First-time Adoption of International Financial Reporting Standards- Overview
• IFRS 2 Share-based Payment
• IFRS 3 Business Combinations
• IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
• IFRS 7 Financial Instruments: Disclosures
• IFRS 8 Operating Segments
• IFRS 9 Financial Instruments
• IFRS 10 Consolidated Financial Statements
• IFRS 11 Joint Arrangements
• IFRS 12 Disclosures of Interest in Other Entities
• IFRS 13 Fair Value Measurement
• IFRS 15 Revenue from Contracts with Customers
• IFRS 16 Leases
  • Classification of leases
  • Treatment by the lessor
  • Lease incentives
  • Service costs
  • Contingent rents
  • Sale and lease-back arrangements
  • Derivatives embedded in lease agreements
• Review of model IFRS Financial Statements
• Real-world IFRS Financial Statements

Teaching Method

• Group live instruction with interactive participation encouraged
• Identification of the critical issues affecting financial reporting in the real estate industry
• Real life examples of IFRS Standards impacting real estate entities
• Presentation and discussion of recommended financial statement disclosures
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Instructors

Venue

CPE/CPD Accreditation

IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

 

Field of study: Accounting

Prerequisites

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