PIRON

 

Real Estate Sector

IFRS for Real Estate Sector

Duration: 2 Days

This IFRS Immersion program answers questions such as:

1. What are the accounting requirements for typical real estate lease, property, and investment property activities?
2. How are lease contracts analysed for accounting purposes?
3. When are lease incentives, service costs and embedded derivatives recognised and how are they measured?
4. What EPRA "best practices" guidance is available for the real estate sector?

Course Summary

This two-day course examines international financial reporting issues with a more in-depth review of those that are specific to the real estate industry. Extensive use of case studies is made to explain learning material and to reinforce knowledge.

Course Benefits

  • Understand the basic principles of IFRS
  • Establish accounting policieis where specific guidance does not exist
  • Learn practical answers to typical real estate questions on leases, property, plant and equipment and investment property
  • Be able to analyse lease contracts and accurately account for lease incentives, service costs and embedded derivatives
  • Apply “best practices” and industry recommendations within the real estate sector

Teaching Method

  • Live group instruction with interactive participation encouraged
  • Identification of the critical issues affecting financial reporting in the real estate industry
  • Succinct examples and cases that illustrate classification and accounting for real-estate-related transactions
  • Presentation and discussion of recommended financial statement disclosures
  • All participants receive a copies of the presentation slides and other course materials

Course Summary

The programme covers, through the use of case studies and exercises:
Day 1
  • IAS 11 Construction Contracts
  • IAS 12 Income Taxes
  • IAS 14 Segment Reporting
  • IFRS 8 Operating Segment
  • IAS 16 Property, Plant and Equipment (including cost , component approach, initiating depreciation, depreciation method and period, assets under development, cost model vs. revaluation model)
  • IAS 17 Leases (including classification of leases, treatment by the lessor, lease incentives, service costs, contingent rents, sale and lease-back arrangements, derivatives embedded in lease agreements)
  • IAS 18 Revenue
Day 2
  • IAS 23 Borrowing Costs
  • IAS 36 Impairment of Assets
  • IAS 40 Investment Property (including definition of investment property, initial measurement, directly attributable expenditures, cost model vs. revaluation model, determination of fair value, presentation of changes in fair value)
  • Overview of IFRS 1 First-time Adoption of International Financial Reporting Standards
  • Consolidation, investments in associates and joint ventures (IAS 27, IAS 28 and IAS 31)
  • IFRIC Interpretation 15 Agreements for the Construction of Real Estate
  • Detailed review of presentation of accounts under IFRS as recommended by EPRA including review of best practices recommended by EPRA

Note: Above can be customized as per your need.

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