PIRON

 

IFRS First Time Adoption

Duration: 2 Days

The programme answers questions such as:

1. What are the timing, transition, recognition, measurement, presentation, and disclosure requirements of IFRS 1?
2. How is the impact of first-time adoption of IFRS communicated to stakeholders?
3. What are the available policy options and their short-term and long-term consequences?
4. How can the costs and benefits of various courses of action be determined?
5. What must be done in order to use the hedge accounting rules of IAS 39?
6. In what ways will systems require modification in order to implement IFRS?
7. What are the most common pitfalls that occur during transition to IFRS and how can they be avoided?

Course Summary

This two-day workshop provides a comprehensive look at IFRS 1, First-time Adoption of International Financial Reporting Standards.

Course Benefits

  • Apply the complex requirements of IFRS 1
  • Understand the available policy options and their short-term and long-term consequences
  • Communicate the impact of first-time adoption of IFRS to stakeholders
  • Discern the costs and benefits of various courses of action
  • Know what must be done in order to use the hedge accounting rules of IAS 39
  • Determine the system modifications and other changes that will be required in order to implement IFRS
  • Gain the understanding required to develop an effective implementation plan for your company

Teaching Method

  • Description and explanation of IFRS technical requirements in clear and simple language Identification of the critical issues involved in the transition to IFRS
  • Extensive use of case studies, model financial statements and checklists
  • All participants receive copies of the presentation slides and other course materials

Course Summary

The course topics include:

  • General principles of IFRS 1 concerning recognition, measurement and the retrospective approach
  • Mandatory exceptions to the general principles including: Use of estimates; De-recognition of financial assets and financial liabilities; Hedge accounting; and Non- controlling interests
  • Strategies for the use of voluntary exemptions including: Business combinations; The use of fair value or revaluation as deemed cost; Employee benefits; Cumulative translation differences; Compound financial instruments; Investments in subsidiaries, jointly controlled entities and associates at deemed cost; Assets and liabilities of subsidiaries, jointly controlled entities and associates; Designation of previously recognised financial instruments; Share-based payment transactions; Insurance contracts; Decommissioning liabilities included in the cost of property, plant and equipment (IFRIC 1); Leases – rights of use (IFRIC 4); Fair value measurement of financial assets or financial liabilities at initial recognition; Service concession arrangements; and Borrowing costs

 

  • Presentation and disclosure requirements. Other specific issues include: Accounting policy selection, including review of available alternatives
  • Fair value measurements at the date of transition to IFRS
  • Impairment testing, with an emphasis on evaluation of goodwill
  • Requirements for the use of hedge accounting
  • Consolidation
  • Reporting liabilities (deferred tax, provisions, leases, pensions)
  • Press releases and interim reporting
  • Amendment to IFRS 1 First-time Adoption of IFRS and IAS 27 Separate and Consolidated Financial Statements, relating to cost of an investment on first-time adoption (May 2008, effective January 2009).

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