International Financial Reporting Standards & Preparation & Assessment Of Financial Statements
International Financial Reporting Standards & Preparation & Assessment Of Financial Statements
Course Code:
FA21
►Course Objective
Understand the current and potential future requirements of IFRS, including the final prospects and timetable for the convergence of GAAP and IFRS
Apply standards in accordance with their requirements in terms of preparing IFRS compliant financial statements, including the selection of appropriate accounting policies and related footnote disclosures
Understand the recognition and measurement principles as delineated within the IASB’s Framework and comprehending their application within each accounting standard
Define and apply the transition process to IFRS and identify the first-time exemptions that are applicable to the financial statements of a transitioning organization
Examine accounting standards that eith
►Target Audience
Accounting professionals
Financial executives
Auditors
Financial analysts
Bankers
Investment bankers
Any other professionals involved in the preparation, presentation, implementation or analysis of financial statements prepared in accordance with IFRS
►Course Outline
DAY 1
Evolution of International Accounting Standards
Competency Description: As an accounting or other professional, you are a key role in the organization and you need to gain an understanding of the technical and management skills that are crucial to your role.
Key behaviours:
Technical understanding of principles of IFRS
Understanding the IFRS conversion process and how this is likely to impact on your organization
Technical understanding of opportunities and difficulties that conversion presents
Managing change
Topics to be covered:
International Financial Reporting Standards (“IFRS”)
Introduction, History and Overview of Existing and Future Standards
Roles of the Various Accounting Standards Setting Bodies
Objectives and Structure of the International Accounting Standards Board (“IASB”)
Framework, Demand and Adoption of IFRS
Convergence
Introduction and Historical Overview
Issues, Benefits and Problems of Convergence
IASB/FASB Projects
U.S. SEC Adoption Timeline and Activities
DAY 2
Structural Framework for the Preparation and Presentation of Financial Statements
Competency Description: As an accounting or other professional, you are a key role in the organization and you need to gain an understanding of the technical and management skills that are crucial to your role.
Key behaviours:
Technical understanding of Audit Impact
Understanding the more technical and qualitative aspects in financial statements and the message this sends out
Technical understanding of opportunities and difficulties that conversion presents
Managing change
Topics to be covered:
Purpose and Objectives, including Financial Statement Audit Impact
Scope, Structure and Content of IFRS Financial Statements
Accounting Policies and Underlying Assumptions
Components of Financial Statements, including Qualitative Characteristics
Measurement and Recognition of the Elements of Financial Statements
Transition Concerns and Transition Plan Elements
DAY 3
Preparation and Presentation of IFRS Financial Statements
Competency Description: As an accounting or other professional, you are a key role in the organization and you need to gain an understanding of the technical and management skills that are crucial to your role.
Key behaviours:
Technical understanding of choices available within the IFRS standards
Understanding the detailed disclosure requirements within IFRS financial statements
Understanding revenue recognition issues and how to practically apply them
Being aware of revenue recognition fraud issues
Topics to be covered:
Structure and Content of Both General and Specific Elements of Financial Statements
IAS 1
Balance Sheet
Income Statement
Presenting Either a Statement of Changes In Equity or a Statement of Recognized Income or Expense (“SORIE”)
Statement of Cash Flow
Consolidation Criteria and Requirements
Notes to Financial Statements and Related Disclosures
Revenue Recognition and Reporting Requirements
DAY 4
Conversion Preparation to IFRS
Competency Description: As an accounting or other professional, you are a key role in the organization and you need to gain an understanding of the technical and management skills that are crucial to your role.
Key behaviours:
Technical understanding of main differences between IFRS and US standards
Understanding the detailed valuation and disclosure requirements
Setting management implementation plans
Dealing with change management issues
Topics to be covered:
Examining Substantive Differences in Disparate Accounting Treatments
Inventory
Fixed Assets
Valuation
Revaluation
Depreciation
Deferred Taxes
Contingencies
Performing Thorough Assessments
Technical Accounting and Tax Implications and Risks
Supporting Established Processes and Infrastructure Considerations
Adopting Implementation Plans
Conversion Issues and Concerns
Technical Accounting and Tax Conversion Issues
Designing Supporting Processes and Infrastructure Features
Developing Revised Organization Plans and Change Strategies
Conversion Maintenance
Implementing Support Processes and Infrastructure Features
Change Management Execution Strategies
Conversion Transfers
Comparative Analysis of Companies Adopting or Not Adopting IFRS
DAY 5
Impact of IFRS on Financial Statements Interpretations
Competency Description: As an accounting or other professional, you are a key role in the organization and you need to gain an understanding of the technical and management skills that are crucial to your role. It is vitally important that you not only have the skills to prepare your own financial statements but can also appraise performance and benchmark that against competitors.
Key behaviours:
Understanding of a range of techniques for performances appraisal and benchmarking
Understanding the implications for bank covenants and investors
Understanding the importance of governance and current issues and best practice
Being aware of the technical difficulties of benchmarking and industry comparison
Topics to be covered:
International Accounting and Diversity Considerations
Financial Analysis Tools and Techniques
Common Size Statements
Trend Analysis
Ratio Analysis
Dupont Analysis
Z Scores
Investment Ratios
Cash Flow Ratios
Peer Group and Industry Comparisons
Importance of Corporate Governance and Awareness of IFRS Best Practices