International Financial Reporting Standards (IFRS) are developed and maintained by the International Accounting Standards Board (IASB). The overriding requirement of IFRS is to fairly present financial statements. This course begins with an overview of the conceptual framework and other significant general considerations applied in the preparation and fair presentation of IFRS financial statements.
We then look at the primary differences between full IFRS and IFRS for SMEs, and an overview of the most significant elements of the new five-step model to determine when and what amount to recognize revenue.
Next we address the proper accounting treatment for both current and deferred income taxes and the most important considerations in accounting for short-term employee benefits (like paid absences), defined contribution plans, defined benefit plans, and other employee benefits.
We then highlight the accounting and financial requirements of the new accounting standard, IFRS 16, followed by a look at IFRS 9 which supersedes significant portions of International Accounting Standard (IAS) 39, Financial Instruments: Recognition and Measurement.
Next we explore how business combinations under International Financial Reporting Standards (IFRS) are accounted for under the acquisition method, with limited exceptions, including a look at the step-by-step method for properly accounting for business combinations, which includes calculating goodwill or a bargain purchase gain per IFRS 3.
We then look at IFRS 10, which provides guidance for entities that are consolidated. We explore when it is appropriate to apply each of the accounting methods for investments in other entities, and the resulting financial statement implications.
Next is an overview of the principles contained in International Financial Reporting Standards (IFRS) related to the initial recognition and subsequent measurement of nonfinancial assets, such as property, plant, and equipment, investment property, intangible assets, and inventories.
We then look at various issues encountered for the proper accounting and reporting of share-based payment awards per IFRS 2, followed by an overview of the most challenging requirements to understand and apply for hedge accounting under International Financial Reporting Standard (IFRS) 9.
Next we review the changes to IFRS that came about in 2018 and 2017, which affect different areas of accounting, such as recognition, measurement, presentation and disclosure.
Learning Objectives
- Explore the Conceptual Framework of Financial Reporting that underlies the preparation and fair presentation of financial statements.
- Explore which entities may appropriately apply International Financial Reporting Standards for Small and Medium-Sized Entities (IFRS for SMEs), discover the primary differences of IFRS for SMEs compared to full IFRS, and recognize important principles that are reinforced in both IFRS for SMEs and full IFRS.
- Explore the new five-step model that determines when and what amount of revenue to recognize and recognize whether to recognize revenue either over time, in a manner that best reflects performance, or at a point in time, when control of the goods or services is transferred to the customer.
- Discover how to handle special tax consequences, such as share-based payments, business combinations, and more.
- Discover how to handle special issues such as multi-employer plans, plan amendments, termination benefits, and more.
- Explore how to identify a lease transaction under International Financial Reporting Standard (IFRS) 16, discover the impact of the new lease accounting requirements on lessees and lessors, and recognize exceptions to on-balance-sheet lease accounting for lessees.
- Explore the recognition and measurement of financial instruments per International Financial Reporting Standard (IFRS) 9, including the recording of any gains or losses and discover the classification of equity investments and debt securities, and the resulting appropriate accounting treatment.
- Explore how to identify the acquirer in a business combination and how to value the identifiable assets acquired and liabilities assumed.
- Explore the equity method for accounting for associates that are “significantly influenced” by the reporting entity per International Accounting Standard (IAS) 20. Discover the proper treatment of joint ventures and joint operations per International Financial Reporting Standard (IFRS) 11 and recognize when an entity qualifies as an investment entity per IFRS 10, which precludes consolidation by the parent entity.
- Explore important considerations for accounting for property, plant, and equipment per International Accounting Standard (IAS) 16 and investment property per IAS 40.
- Explore the basic principles of International Financial Reporting Standard (IFRS) 2, Share-Based Payment and discover proper accounting for both equity-settled and cash-settled transactions
- Explore the hedge accounting requirements of International Financial Reporting Standard (IFRS) 9 and recognize how hedge accounting changes under IFRS 9 are meant to better reflect the entity’s risk management strategy.
- Explore where financial statement preparers should focus the most time and attention on now when preparing interim and annual financial statements, discover highlights of recently-issued International Financial Reporting Standards (IFRS) pronouncements, focusing on changes with upcoming effective dates, and recognize the most significant accounting and financial reporting changes with future effective dates that entities should be preparing for now, such as leases.
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