IFRS for Information Technology (IT)
Duration: 2 Days
This course answers questions such as:
1. What items typically appear on the financial statements of entities in the IT industry?
2. How are recognition and measurement rules applied to long-lived and intangible assets, research and development, financial assets and liabilities, provisions and contingencies, inventories, employee compensation, equity incentive plans, and industry-specific expenditures?
3. What are the significant upcoming changes relating to business combinations?
4. How IAS 18 and US GAAP are applied to complex revenue recognition situations?
Course Summary
This two-day course examines international financial reporting issues in detail and their effect on information technology companies.
Course Benefits
- Learn practical answers to typical IT industry questions on financial statement presentation, long-lived and intangible assets, research and development, financial assets and liabilities, provisions and contingencies, inventories, employee compensation, equity incentive plans, and industry-specific expenditures
- Become familiar with significant recent and upcoming changes relating to the recognition, measurement and reporting of acquisitions
- Become familiar with significant recent and upcoming changes relating to the recognition, measurement and reporting of acquisitions
Teaching Method
- Identification of the critical issues affecting financial reporting in the information technology industry
- Succinct examples and cases that illustrate classification and accounting
- All participants receive copies of the presentation slides and course materials
Course Summary
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Topics include:
- Presentation issues
- Consolidation requirements
- Treatment of variable interest and special purpose entities
- Presenting costs by nature or by function
- Segment reporting
- Long-lived assets
- Accounting for property, plant and equipment
- Capital and operating leases
- Intangible assets
- Intellectual property rights
- Patent licensing
- Research and development
- When to start capitalising internal development costs
- Which expenditures to consider for capitalisation
- Development of own intellectual property
- Determining useful economic lives, start of amortisation, methods, etc.
- Examples of indefinite-life intangible assets
- Impairment indicators and accounting for impairment
- Inventory
- Indicators of impairment
- Measuring and recognising impairment losses
- Accounting for impairment
- Financial assets and liabilities
- Categories of financial assets and accounting methodology by type
- Hedge accounting
- Treatment of equity method investments
- Debt vs. equity identification and reporting
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- Provisions and contingencies
- Warranties
- Intellectual property infringement indemnification
- Litigation
- Restructuring charges
- Other provisions and contingencies
- Revenue recognition issues
- Allowances and discounts
- Price protection
- Right of return
- Shipping charges
- Other current revenue issues
- Employee compensation including equity incentive plans
- Short-term compensation
- Pension measurement, recognition and reporting
- Share-based payment
- Expenditure issues
- Cooperative advertising
- Vendor payments
- Acquisitions
- Identification and treatment of goodwill
- Acquisition of development-stage technologies
- Overview of the new business combinations standard
- Upcoming issues
- IT relevant Exposure Drafts
- IFRS-US GAAP convergence update
- IASB projects and plans.
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