IFRS Accounting Principles Masterclass

PART 1: IFRS FOUNDATION AND CONCEPTUAL FRAMEWORK

Module 1: Introduction to IFRS

Learning Outcomes

Participants will be able to:

• Explain the purpose and objectives of IFRS

• Understand the IASB standard-setting process

• Differentiate between IFRS and local GAAP

• Understand the global adoption of IFRS

Topics

• History and evolution of IFRS

• IASB and IFRS Foundation

• Due process of standard setting

• IFRS hierarchy

• Role of IFRIC Interpretations

• Adoption of IFRS globally

• Benefits and challenges of IFRS

Module 2: Conceptual Framework for Financial Reporting

Topics

• Objective of general-purpose financial reporting

• Users of financial statements

• Qualitative characteristics

• Elements of financial statements

• Recognition criteria

• Derecognition

• Measurement concepts

• Capital maintenance concepts

Practical Case Study

Preparation of financial statements using the Conceptual Framework.

PART 2: PRESENTATION OF FINANCIAL STATEMENTS

Module 3: Financial Statement Presentation

IAS 1 / IFRS 18 Transition

Topics:

• Complete set of financial statements

• Statement of Financial Position

• Statement of Profit or Loss

• Statement of Changes in Equity

• Cash Flow Statement

• Notes to Financial Statements

Module 4: IFRS 18 – Presentation and Disclosure in Financial Statements (NEW)

Topics

• Replacement of IAS 1 presentation requirements

• New operating profit subtotal

• Profit before financing and taxes subtotal

• Categories of income and expenses:

  • Operating

  • Investing

  • Financing

  • Income taxes

  • Discontinued operations

• Management-defined Performance Measures (MPMs)

• Aggregation and disaggregation principles

• Enhanced disclosure requirements

• Impact on KPI reporting

• Impact on financial analysis and valuation

Practical Workshop

Redesigning financial statements under IFRS 18.  

Module 5: Accounting Policies and Estimates

IAS 8

Topics:

• Selection of accounting policies

• Changes in accounting policies

• Changes in estimates

• Error corrections

• Retrospective vs prospective application

PART 3: ASSET ACCOUNTING

Module 6: Property, Plant and Equipment

IAS 16

Topics:

• Recognition

• Initial measurement

• Subsequent measurement

• Revaluation model

• Component accounting

• Depreciation

• Derecognition

Module 7: Borrowing Costs

IAS 23

Topics:

• Capitalisation principles

• Qualifying assets

• Practical calculations

Module 8: Investment Property

IAS 40

Topics:

• Fair value model

• Cost model

• Transfers

Module 9: Intangible Assets

IAS 38

Topics:

• Recognition

• Research vs development

• Useful lives

• Amortisation

• Internally generated assets

Module 10: Impairment of Assets

IAS 36

Topics:

• Impairment indicators

• Recoverable amount

• Value in use

• CGUs

• Reversal of impairment

PART 4: INVENTORIES, REVENUE AND CONTRACTS

Module 11: Inventories

IAS 2

Topics:

• Cost formulas

• NRV

• Inventory write-downs

• Manufacturing costs

Module 12: Revenue Recognition

IFRS 15

Topics:

• Five-step model

• Performance obligations

• Variable consideration

• Contract modifications

• Principal vs agent

Industry Cases

• Construction

• Telecommunications

• Mining

• Retail

PART 5: FINANCIAL INSTRUMENTS

Module 13: IFRS 9 Financial Instruments

Topics:

Classification and Measurement

• Amortised Cost

• FVOCI

• FVTPL

Expected Credit Losses

• ECL model

• Stage 1, 2 and 3

Hedge Accounting

• Fair value hedge

• Cash flow hedge

• Net investment hedge

Module 14: IFRS 7 Disclosures

Topics:

• Credit risk

• Liquidity risk

• Market risk

• Sensitivity analysis

PART 6: LIABILITY ACCOUNTING

Module 15: Provisions and Contingencies

IAS 37

Topics:

• Provisions

• Contingent liabilities

• Contingent assets

• Onerous contracts

Module 16: Employee Benefits

IAS 19

Topics:

• Short-term benefits

• Post-employment benefits

• Defined contribution plans

• Defined benefit plans

Module 17: Income Taxes

IAS 12

Topics:

• Current tax

• Deferred tax

• Temporary differences

• Tax rate reconciliation

PART 7: LEASE ACCOUNTING

Module 18: IFRS 16 Leases

Topics:

Lessee Accounting

• Right-of-use assets

• Lease liabilities

Lessor Accounting

• Finance leases

• Operating leases

Advanced Topics

• Sale and leaseback

• Variable lease payments

• Lease modifications

PART 8: GROUP ACCOUNTING AND CONSOLIDATIONS

Module 19: Business Combinations

IFRS 3

Topics:

• Acquisition method

• Fair value adjustments

• Goodwill

• Bargain purchases

Module 20: Consolidated Financial Statements

IFRS 10

Topics:

• Control assessment

• Consolidation procedures

• NCI

• Intragroup eliminations

Module 21: Joint Arrangements

IFRS 11

Topics:

• Joint operations

• Joint ventures

Module 22: Associates

IAS 28

Topics:

• Equity accounting

• Significant influence

Module 23: Related Party Disclosures

IAS 24

Topics:

• Identification

• Disclosure requirements

PART 9: SPECIALISED IFRS TOPICS

Module 24: Foreign Currency Accounting

IAS 21

Topics:

• Functional currency

• Foreign operations

• Translation adjustments

Module 25: Fair Value Measurement

IFRS 13

Topics:

• Fair value hierarchy

• Valuation techniques

• Market approach

• Income approach

Module 26: Share-Based Payments

IFRS 2

Topics:

• Equity-settled schemes

• Cash-settled schemes

• Modifications

Module 27: Non-current Assets Held for Sale

IFRS 5

Topics:

• Classification

• Measurement

• Discontinued operations

PART 10: INDUSTRY-SPECIFIC IFRS APPLICATIONS

Module 28: Mining Sector IFRS

Topics:

• Exploration and evaluation

• Rehabilitation provisions

• Impairment

• Revenue complexities

Module 29: Financial Services IFRS

Topics:

• ECL modelling

• Financial instruments

• Regulatory disclosures

Module 30: Public Interest Entities

Topics:

• ESG reporting

• Sustainability reporting linkages

• Governance disclosures

PART 11: EMERGING IFRS DEVELOPMENTS

Module 31: IFRS 19 – Subsidiaries Without Public Accountability (NEW)

Topics

• Scope and eligibility

• Reduced disclosure framework

• Relationship with full IFRS

• Cost-benefit considerations

• Implementation challenges

Practical Application

Determining whether a subsidiary qualifies for IFRS 19.  

Module 32: Sustainability Reporting and IFRS S1 & S2

Topics

IFRS S1

• General sustainability disclosures

IFRS S2

• Climate-related disclosures

• Climate risk assessment

• Transition planning

• Governance requirements

PART 12: IFRS FINANCIAL STATEMENT PREPARATION PROJECT

Capstone Case Study

Participants prepare:

• Statement of Financial Position

• Statement of Profit or Loss

• Cash Flow Statement

• Notes

• Consolidation adjustments

• IFRS 18 presentation disclosures

• Sustainability disclosure extracts