IFRS Masterclass:
Updates and Practical Applications 2019/2020
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| AE | Dubai | 21-22 Sep |
Workshop Overview
IFRS and their applications can be complex and challenging. IFRS standards continue to develop rapidly: new accounting standards are released, old ones are adapted and new interpretations are made. Therefore, keeping up to date with the frequent changes and latest development is crucial for your organisations. However, monitoring IFRS developments and analysing the impact on your financial
statements can be challenging.
The course aims to provide an overview of the role of the IASB and the revised conceptual framework. Requirements of significant new and amended Standards and Interpretations effective for 2019 and later are explained clearly. Practical application issues of existing standards and upcoming changes are offered during the workshop. The course is designed to address some of the comprehensive
accounting IFRS application issues faced by financial statement preparers, auditors, and other stakeholders.
Key Takeaways
The masterclass equips attendees with comprehensive understanding of the latest IFRS updates and practical applications, including:
- Recognition and measurement of lease liabilities under IFRS 16
- Practical expedients - separating lease and non-lease components; exemptions
- Practical review of IFRS 15: 5-step revenue recognition model
- Impact of the amendments to the Conceptual Framework for Financial Reporting
- New definition of material and new threshold
- Different types of use of fair value measurement
- Definition of business - optional concentration test
- Uncertainty over income tax treatments
- Remeasurement of fair value of the interest previously held in a joint operation
- Treatment of outstanding borrowing when qualifying asset is ready for intended use or sale
- Discussion Paper on “Financial Instruments with Characteristics of Equity
WHY YOU SHOULD ATTEND
- Practical and hands-on workshop
- Comprehensive materials covering all aspects of IFRS 9
- Understanding of the “expected loss” impairment model
- Review of hedge accounting with real-life case-studies
- Understand the significant disclosure requirements
Methodologies
- Highly practical approach
- Cases, examples, open discussions
- Description and explanation of changes in IFRSs, including implementation requirements and transitional rules
- Use of illustrative financial statements and worked examples
- Participants will need to bring laptops to work through the examples and case studies
Who Should Attend
- Chief financial officers
- Financial controllers
- Finance directors
- Finance managers
- Members of finance team
- Accountants
- Accounting policy staff
- Audit partners
- Audit managers
- Internal auditors
- Financial analysts
- Portfolio managers
- Securities analysts
- Pension fund managers
- Credit risk officers
- Risk managers
- Risk analysts
- Investment analysts
- Anyone who requires the knowledge of IFRS 9
ProgramME Agenda
Session 1: RECENT IFRS CHANGES - WHAT'S NEW?
- New standards in issue
- IASB recent activities and proposed changes
Session 2: LEASES (REPLACING IAS 17) (EFFECTIVE 1 JAN 2019)
- Scope of application and review of key differences from IAS 17 Leases
- Overview of the expected consequences
- Revised definition of a lease
- Lessee Accounting
- Single model: recognition of leases on balance sheet
- Recognition exemptions
- How to identify a lease
- Lease and service components
- Measurement of lease liabilities: lease payment and lease term
- Lease modification and sublease
- How lease is accounted for after initial recognition
- How the right of use asset and lease liability are shown on the balance sheet
- How the corresponding charges are reflected in P&L
- Interactions with other standards:
- IAS36 Impairment of right-of-use assets
- IAS 12 Deferred Tax
- IFRS 3 Business Combination
- Transition approaches:
- Previous operating leases
- Previous finance leases
- Practical expedients/exemptions:
- Separating lease and non-lease components
- Short term lease exemptions; low value exemptions
- Portfolio application to leases
- Extended disclosure requirements
- Qualitative disclosures on leasing activities
- Reconciliation on transition
- Right-of-use assets breakdown by class
- Implication of using Excel for IFRS 16
- Lessor accounting:
- Finance and operating lease distinction remains for lessors
Session 3: IFRS 15 – REVENUE FROM CONTRACTS WITH CUSTOMER (PRACTICAL REVIEW)
- 5-step revenue recognition model
- Identifying the contracts with customer
- Combining contracts and modifying contracts
- Performance obligations
- Determine the transaction price, including variable consideration
- Allocate the transaction price to performance obligations
- Satisfaction of performance obligations at a point in time or over time
- Practical examples: Point in time revenue recognition and over time revenue recognition over time
- Contract assets and contract liabilities
- Implementation issues, including areas of estimations and judgements
- Specific application guidance:
- Warranties
- Price Discounts
- Sale with a Right of Return
- Non-refundable upfront fees
- Method of transition
- Continuous assessment: new contracts, new terms, contracts modification
Session 4: REVISED 'CONCEPTUAL FRAMEWORK’ – PRACTICAL IMPACT (EFFECTIVE 1 JAN 2020)
- Amendments to the Conceptual Framework for Financial Reporting, including amendments to references to the Conceptual Framework in IFRS Standards
- The amended “objective” of financial reporting
- What are the good “qualities” of accounting?
- Applying the Framework for choices made under IAS 1 and IAS 8
- New definitions of “Asset” and “Liability”
- How the new definitions might affect accounting
Session 5: DEFINITION OF MATERIAL (AMENDMENTS TO IAS 1 AND IAS 8) (EFFECTIVE 1 JAN 2020)
- New definition of material
- Obscuring information
- New threshold
- Primary users of the financial statements
Session 6: ASSETS: FAIR VALUE MEASUREMENT
- Different types of use of fair value: initial measurement, subsequent measurement and impairment
- How much fair value is in IASs?
- How much fair value is added in IFRSs?
- Under the options, how much fair value is chosen?
Session 7: LIABILITIES AND EQUITY: WHAT EXACTLY IS THE DIVIDING LINE, AND WHY DOES IT MATTER?
- Discussion Paper on “Financial Instruments with Characteristics of Equity”
- How will this affect practice?
Session 8: PRACTICAL PROBLEMS WITH "LIABILITIES" IN IFRS: DEFINITION, RECOGNITION AND MEASUREMENT
- Why certain items are not liabilities, eg. most share based payments, proposed dividends, restructuring provisions, non-controlling interests
- When to recognise legal cases against your company
- How various liabilities are measured under IFRS
Session 9: PRESENTATION OF FINANCIAL STATEMENTS; P&L VS OCI
- Amendments to IAS1 and IAS7 in recent years
- Preparing the Statement of Changes in Equity
- Difference between Net Income (P&L) and Other Comprehensive Income (OCI)
- Example of items in OCI
- When and why are items reclassified out of OCI
Session 10: GROUP ACCOUNTING: APPLYING IFRS IFRS 3, 10, 11, 12
- The current suite of standards on group accounting
- Practical examples of applying the principles on the scope of the group
- The calculation and treatment of goodwill
- Associates and joint ventures
- Foreign currency gains and losses
- Business Combinations under Common Control (Discussion Paper in the first half of 2020)
Session 11: DEFINITION OF A BUSINESS (AMENDMENTS TO IFRS 3) (EFFECTIVE 1 JAN 2020)
- Optional concentration test
- Assessment of inputs, processes and outputs
Session 12: IFRS 3, BUSINESS COMBINATIONS AND IFRS 11, JOINT ARRANGEMENTS - PREVIOUSLY HELD INTEREST IN A JOINT OPERATION (ANNUAL IMPROVEMENTS) (EFFECTIVE 1 JAN 2019)
- Remeasurement of fair value of the interest previously held in a joint operation
Session 13: INVESTMENT IN A SUBSIDIARY ACCOUNTED FOR AT COST: STEP ACQUISITION (IAS 27 SEPARATE FINANCIAL STATEMENTS) (IFRIC AGENDA DECISION)
- Accounting policy choice to measure cost
- Fair value as deemed cost approach
- Accumulated cost approach
- Difference between the fair value of the initial interest and its original cost recognised in P&L
Session 14: INVESTMENT IN A SUBSIDIARY ACCOUNTED FOR AT COST: PARTIAL DISPOSAL (IAS 27 SEPARATE FINANCIAL STATEMENTS) (IFRIC AGENDA DECISION)
- On disposal of subsidiary, associate or JV, equity reserve balances de-recognised
- On partial disposal of financial asset, subsequent changes in fair value in other comprehensive income (OCI) election available
Session 15: LONG-TERM INTERESTS IN ASSOCIATES AND JOINT VENTURES (AMENDMENTS TO IAS 28) (EFFECTIVE 1 JAN 2019)
- IFRS 9 applied on long-term interests in an associate or joint venture but to which equity method is not applied
Session 16: IFRIC 23 UNCERTAINTY OVER INCOME TAX TREATMENTS (EFFECTIVE 1 JAN 2019)
- Assessed separately or as a group
- No detection risk
- Yearly reassessment on change in facts and circumstances
Session 17: IAS 23, BORROWING COSTS - BORROWING COSTS ELIGIBLE FOR CAPITALISATION (ANNUAL IMPROVEMENTS) (EFFECTIVE 1 JAN 2019)
- Treatment of outstanding borrowing when qualifying asset is ready for intended use or sale
Session 18: PLAN AMENDMENT, CURTAILMENT OR SETTLEMENT (AMENDMENTS TO IAS 19) (EFFECTIVE 1 JAN 2019)
- Use of updated assumptions
- Reduction in surplus recognised in P&L