Application of International Financial Reporting Standards (IFRS)

Transcription

1 Place: Warszawa, Kraków, Poznań, Wrocław Timetable is on page 10 Client Relations Officer - Warsaw & Kraków groups Małgorzata Tryc tel malgorzata.tryc@pl.ey.com - Poznań group Katarzyna Pudelska Tel katarzyna.pudelska@pl.ey.com - Wrocław group Beata Kaputa Tel beata.kaputa@pl.ey.com academyofbusiness@pl.ey.com Ernst & Young Academy of Business al. Armii Ludowej Warszawa Tel Fax Application of International Financial Reporting Standards (IFRS) International Financial Reporting Standards is a programme covering existing International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and IFRIC interpretations. Up to and including IFRS 8 Comprehensive course materials provided Interactive training based on exercise solving and discussion of real-life scenarios Progress tests throughout the programme to assess the knowledge of participants Diploma awarded upon completion of the programme and passing of the final exam Objectives and advantages To apply advanced accounting principles and techniques in a practical context. To evaluate and apply various international standards. To analyse, interpret and report on financial statements and related information to different user groups. To ensure that preparers and users of financial statements are upto-date with current amendments and requirements of IFRS.

2 Reporting Standards (IFRS) 2 Who for Accountants, chief accountants, controllers and finance managers who would like to understand, interpret and apply IFRS. The course assumes knowledge of basic accounting procedures and double entry bookkeeping. No prior knowledge of accounting standards is required. Course structure The course is composed of a mixture of lectures, question and answer sessions, practical exercises and illustrations as well as home study. The programme is divided into four modules, each consisting of three days of training with about three weeks break between the course days. During the time between courses participants are expected to study at home in their own time and solve tests. Tests are marked by the Ernst & Young Academy of Business team and sent back to participants together with the solutions. An hot line is available to facilitate contact with the tutor if any problems or questions regarding homework assignments should arise. It is possible to participate in selected modules only. Materials Participants receive comprehensive course notes in Polish, which include a theoretical component summarizing the key elements of IFRS as well as practical tests and solutions. There is also a possibility (only for this course participants) to purchase the training materials in English at additional cost. 200 zł + 23% VAT the cost of materials to the whole programme or 80 zł + 23% VAT the cost of the materials for each module Examination The programme finishes with a two and a half hour written examination. After passing the exam with a positive result (at least 50 % of the total marks), those students who have attended the whole course receive an Ernst & Young Academy of Business diploma. The examination will cover only the topics discussed at the course. Costs Each module consisting of three full training days costs PLN 2, % VAT. For those wishing to complete the full course and paying for the whole programme upfront, the cost is PLN 9, % VAT per person. Only now! We can offer you the whole programme at a discounted price of PLN 8, % VAT per person. The price includes course participation and materials for individual home-study. Payment should be made before commencement of each module on the basis of a pro-forma invoice. After payment has been made, each participant will receive an invoice. How to apply? If you are interested in the IFRS Programme, please complete the attached application form and return it to us by fax at least one week before the start of the course.

3 Reporting Standards (IFRS) 3 The programme MODULE 1 Part A Introduction to International Financial Reporting Standards (IFRS) Basic historical background to financial reporting and accounting internationally. Structure of the International Accounting Standards Board including current developments and discussion of the work of the International Financial Reporting Interpretations Committee. Role of International Financial Reporting Standards in European Union countries and the United States. The Standard Setting process. IFRS Framework for the Preparation and Presentation of Financial Statements with emphasis on basic accounting concepts and the definitions of assets, liabilities, revenue, costs and equity. Presentation of Financial Statements The current format of financial statements. The operating cycle relevant to specific business activities and the classification of assets and liabilities into current/non current. Part B Property, Plant and Equipment Measurement at recognition: costs to be capitalized at initial recognition (purchase price, production cost, costs of removing the asset at the end of its useful economic life). Definition of depreciable amount; various depreciation methods: straight-line, diminishing balance, sum of digits, units of production. Component accounting. Measurement after recognition: cost model and revaluation model. Accounting for revaluations and disposals of non current assets. Changes in depreciation methods and revisions of useful life. Presentation and disclosure of non current assets. Borrowing Costs (loans, credits) Definition of borrowing costs Accounting treatment of borrowing costs under the revised IAS 23 Key issues related to capitalization: qualifying assets, capitalization period and capitalization rate. Minimum requirements regarding the presentation of items in the income statement/statement of comprehensive income and statement of financial position/balance sheet; presentation of illustrative formats. Statement of changes in equity. Interim reporting. Inventories Measurement at recognition: purchase price, cost of conversion, other costs included in the valuation of inventory. Net realizable value definition and practical examples of valuation. Standard costing and retail methods. Various methods of apportioning costs to units: FIFO and weighted average. Revenue Recognition Basic revenue categories: from sale of goods, provision of services, interest, royalties and dividends. Conditions for revenue recognition. Fair value measurement: discussion of the need for discounting future cash flows when revenue is to be received in the future; accounting for discounted revenue. Government Grants and Disclosure of Government Assistance Grants related to income and grants related to assets. Discussion of the two methods of accounting for government grants recommended under IAS 20. Investment Properties Definition and measurement at recognition of investment properties. Criteria for classification as investment property; reclassification rules. Valuation methods: cost model and fair value model; conditions for applying the fair value model, accounting for changes in fair value. Events after the Reporting Date Defining the period during which events after the reporting date arise. Adjusting and non-adjusting events practical examples and accounting treatment. Accounting Policies, Changes in Accounting Estimates and Errors Hierarchy of sources for choosing accounting policies. Definition of past period errors and the accounting treatment applied to correction of errors. Accounting estimates and their changes.

4 Reporting Standards (IFRS) 4 Part C Leases Leasing agreements in the light of the substance over form principle. Categories of leases and their impact on the financial statements of the lessor and the lessee. Step by step guide to identifying whether a lease is finance or operating and the accounting entries required. Methods of splitting payments under finance lease into interest and capital components including the sum of the digits and the actuarial methods. Accounting for sale and leaseback transactions. Disclosure requirements. Substance over form Most common issues requiring analysis of economic substance: sale and repurchase agreements, consignment sales, factoring of receivables, securitization of assets. Construction Contracts The nature of revenue and costs arising on long term contracts. Methods of recognizing revenue and costs in the income statement/statement of comprehensive income: completed contract and stage of completion. Practical guidelines on the choice of method for measuring the stage of completion. Treatment of loss generating contracts. Presentation of construction contracts in the balance sheet/statement of financial position. Disclosure and presentation requirements for long term contracts.

5 Reporting Standards (IFRS) 5 MODULE 2 Part A Statement of Cash Flows The need for a statement of cash flows and how it is prepared from information contained in the income statement/statement of comprehensive income, balance sheet/statement of financial position and notes to the financial statements. Definition of cash and cash equivalents; examples of items classified as both of the above. The indirect and direct methods of constructing the cash flow statement. Provisions, Contingent Liabilities and Contingent Assets Definitions of provisions, contingent liabilities and contingent assets Obligating events: legal and constructive obligations Provisions for future operating losses and onerous contracts. Measurement rules: defining the expenditure required to settle the obligation, discounting and unwinding of the discount. Conditions for recognizing provisions for restructuring expenses. Discussion of criteria for recognition in the statement of financial position or in the notes to the financial statements. Introduction to Group Accounting Methods of accounting for investments in individual company accounts and their impact on consolidated financial statements. When to use the various methods of consolidation. Definitions of a subsidiary, associate, jointlycontrolled entity, control, joint-control, significant influence and other definitions relating to group accounting. Part B Consolidated Statement of Financial Position and Statement of Comprehensive Income Continuation from the previous module. Examples and exercises illustrating specific issues in consolidation. Related Party Transactions Definition of related parties and the need to disclose transactions and balances with related parties. Types of transactions requiring disclosure; discussion of required level of detail of disclosures. Consolidated Statement of Financial Position and Statement of Comprehensive Income Step by step guide to the preparation of the consolidated statement of financial position based on discussion of examples. Goodwill and gain on bargain purchase. Impairment of goodwill Revaluation of the assets and liabilities of a subsidiary to fair value. Non-controlling interests in the statement of financial position. Consolidation adjustments eliminating: equity and investments, intra-group balances (trade, loans), unrealized profit on intra-group transactions arising from the transfer of inventory and non-current assets (including the impact on depreciation), Dividends. Step by step guide to the preparation of the consolidated statement of comprehensive income based on discussion of examples. Eliminating intra-group transactions from the perspective of the statement of comprehensive income (sales, cost of sales, dividends). The impact of transactions on non-controlling interests. Deferred Taxation Identifying taxable and deductible temporary differences. Tax base of assets and liabilities. Accounting for deferred tax assets and liabilities using the liability method. Measurement and presentation of deferred tax assets. Deferred tax balances. Deferred taxation in consolidated financial statements.

6 Reporting Standards (IFRS) 6 Part C Impairment of Assets Identifying external and internal impairment indicators. Measuring recoverable amount and identifying situations in which an impairment loss needs to be recorded. Value in use under IAS 36 and how to calculate it. Identifying cash generating units (CGUs); allocating impairment losses to specific assets in a CGU. Reversal of impairment losses. Intangible Assets Discussion of definitions. Conditions for recognition of intangible assets: identifiability, control, future economic benefits, reliable measurement. Intangible assets identified in business combinations. Treatment of research and development costs. Treatment of goodwill. First time adoption of international standards The scope of IFRS 1 definition of entities applying international standards for the first time Rules relating to first time adoption of IFRS: defining the reporting date and the date of transition to IFRS, applying compulsory and voluntary exemptions, impact on comparatives.

7 Reporting Standards (IFRS) 7 MODULE 3 Part A Earnings per Share Methods of calculating basic and diluted earnings per share. Impact of issue of shares at full market price, share splits, bonus issues and rights issues on the weighted average number of shares and comparatives. Treatment of potential ordinary shares: options, convertible preference shares, convertible loans and convertible debentures. Determining the order in which potential dilutive factors are included in the calculation of the weighted average number of shares. Earnings per share for continuing operations. Segment Reporting The necessity for segment reporting. Definition of operating segment and Chief Operating Decision Maker. Discussion on the criteria for presentation of separate segments. Inter-segment transactions. Discussion on the changes required by IFRS 8: Operating segments. Non-current Assets Held for Sale and Discontinued Operations Non-current assets held for sale classification criteria. Measurement of non-current assets held for sale at the date of classification. Accounting for disposal groups. Discussion of when discontinued operations arise and the disclosure requirements in IFRS 5. Accounting for discontinued operations in comparatives. Part B The Equity Method Accounting for associates in the standalone and consolidated financial statements. Discussion, based on an example, of the treatment of an investment in the statement of financial position and statement of comprehensive income under the equity method. Elimination of unrealized profits from transactions between investor and associate. Goodwill and gain on bargain purchase. Proportionate Consolidation Accounting for joint ventures. Discussion, based on an example, of proportionate consolidation with reference to the statement of financial position and statement of comprehensive income. Jointly controlled operations, assets and entities. Business combinations Discussion of how the revised FRS 3 has changed consolidation/group accounting. Deferred and contingent consideration. Remeasurement of assets, liabilities and contingent liabilities at fair value. Impact of remeasurement on the date of acquisition in the consolidated statement of financial position fair value adjustments in subsequent years. Changes in Foreign Exchange Rates and Consolidation of Foreign Subsidiaries Functional and presentation currencies. Criteria considered in selecting the functional currency. Accounting for foreign currency transactions on initial recognition, settlement and balance sheet dates. Recognition of exchange differences. Translating the results and financial position of foreign subsidiaries included in the consolidated accounts. Rules for applying foreign exchange rates to assets, liabilities, equity, income and costs. Recognition of exchange differences in consolidated financial statements: share of group and non-controlling interests. Elimination of balances and transactions with a foreign entity. Translation of goodwill. Financial Reporting in Hyperinflationary Economies Criteria considered in assessing whether hyperinflation exists. Financial statement items subject to adjustments due to hyperinflation.

8 Reporting Standards (IFRS) 8 Part C Financial Instruments: IAS 32 Presentation, IAS 39 Recognition and Measurement, IFRS 7 Disclosure Discussion of the various classes of financial instruments, such as: financial assets and financial liabilities at fair value through profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets and other liabilities. Recognition of gains and losses on the measurement of each class of financial instruments. Measurement of financial assets and liabilities under the amortized cost method. Calculation of the effective interest rate. Measurement of fixed and variable interest instruments on the date of interest payment. Classification as equity and liabilities. Compound financial instruments debentures convertible to shares. Rules for recognizing impairment losses under IAS 39. Impairment of assets carried at amortized cost and available-for-sale. Derivative instruments, with emphasis on forwards, futures and options. Measurement and accounting for derivative foreign exchange contracts classified as held-for-trading. Contracts hedging fair value and future cash flows. Definition and examples of fair value and cash flow hedges. Formal conditions for using hedge accounting. Identifying the hedged item and hedging instrument. Accounting treatment. Embedded derivatives: definition, identification, separation and accounting treatment. Disclosures required under IFRS 7.

9 Reporting Standards (IFRS) 9 MODULE 4 Part A Group Statements of Cash Flows Dealing with the various issues that arise on preparation of group statements of cash flows such as investments in associates, dividends paid to noncontrolling interests and the acquisition and disposal of subsidiaries during the period. Preparing the consolidated statement of cash lows using the indirect method on the basis of information from the consolidated statement of financial position, statement of comprehensive income and notes to the financial statements. Part B Employee Benefits Jubilee and retirement bonuses. Holiday pay accruals. The operation of pension schemes. Defined benefit and defined contribution pension schemes. Disclosure requirements for employee benefits. More complex consolidation techniques The impact of piecemeal acquisitions on goodwill calculation. Accounting for disposals of all or part of a subsidiary: calculating the consolidated profit on disposal; accounting for disposals resulting in a reduction of the shareholding, where a controlling interest remains, an associate or investment remains. Consolidation of groups, in which control is exercised indirectly vertical and mixed groups. Piecemeal acquisition under the revised IAS 27. The issues with acquiring and losing control. Group reorganisations including discussion on transactions between entities under common control Share Based Payment Equity-settled and cash-settled share based payments Definition of the grant date, vesting period and vesting date. Accounting for market and non-market vesting conditions. Impact of modification, cancellation and cancellation with compensation on accounting for equity-settled arrangements. Accounting for equity-settled transactions in situations, when the entity or counterparty have the choice of whether to settle in equity or cash. Part C Revision of the most important issues in order to prepare for the final examination.

10 Reporting Standards (IFRS) 10 Dates Warszawa no. 28 Warszawa no. 29 Moduł IA 21 May 22 November 2012 Moduł IB 22 May 23 November 2012 Moduł IC 13 June 8 January 2013 Moduł IIA 14 June 9 January 2013 Moduł IIB 18 September 26 February 2013 Moduł IIC 19 September 27 February 2013 The courses run from 9 am to 5 pm. Two breaks for coffee and snacks are scheduled during the day and at 1 pm participants are invited to lunch (included in the price). All dates will be confirmed before the start of the course. In exceptional circumstances students may participate in a missed module with another group. In order to do that, we kindly ask to contact our client relations officer, at least 7 days before the course. Moduł IIIA 15 October 21 March 2013 Moduł IIIB 16 October 22 March 2013 Moduł IIIC 12 November 22 April 2013 Moduł IVA 13 November 23 April 2013 Moduł IVB 3 December 23 May 2013 Revision 4 December 24 May 2013 Egzamin 17 December 7 June Wrocław no. 10 Kraków no. 10 Poznań no. 10 Wrocław no. 11 Moduł IA 7 February March March November 2012 Moduł IB 8 February March March November 2012 Moduł IC 14 March April April January 2013 Moduł IIA 15 March April April January 2013 Moduł IIB 19 April May May February 2013 Moduł IIC 20 April May May February 2013 Moduł IIIA 21 May June September March 2013 Moduł IIIB 22 May June September March 2013 Moduł IIIC 26 June September October April 2013 Moduł IVA 27 June September October April 2013 Moduł IVB 5 September October November June 2013 Revision 6 September October November June 2013 Egzamin 21 September October November June 2013

11 Reporting Standards (IFRS) 11 Application Form Please complete this form and return by fax to: All information concerning the programme will be sent by to the address indicated. Name and Surname Job title Correspondence address (preferably company address) Tel. no: Address for invoicing incl. NIP I learned about the programme from the press offer sent to the company website other source I confirm my participation in Application of IFRS training programme: full programme or a part: Module 1 Module 2 Module 3 Module 4 in Kraków Poznań Wrocław Warszawa Please issue an invoice for the whole programme: YES NO I would like to order training materials in English at additional cost full programme or a part: Module 1 Module 2 Module 3 Module 4 Warunki uczestnictwa w szkoleniu: Na tydzień przed szkoleniem otrzymają Państwo fakturę pro-forma - warunkiem uczestnictwa jest przesłanie faksem kopii płatności. Opłata powinna być dokonana poprzez przekaz bankowy HSBC Bank Polska, nr rachunku (PLN): Po dokonaniu płatności otrzymają Państwo fakturę VAT. Przy odwołaniu zgłoszenia wpłata na poczet uczestnictwa w kursie nie podlega zwrotowi. Możliwe jest zastępstwo zgłoszonego uczestnika Uprzejmie informujemy, iż nieobecność na szkoleniu nie stanowi podstawy do zwrotu należności za szkolenie. zastrzega sobie prawo do odwołania lub zmiany terminu szkolenia. W trybie art. 10 ust. 2 ustawy z dnia 18 lipca 2002 roku o świadczeniu usług drogą elektroniczną (Dz. U. Nr 144 poz. 1204), wyrażam zgodę na otrzymywanie od, drogą elektroniczną na wskazany powyżej adres elektroniczny, informacji dotyczących tego szkolenia jak i informacji o innych produktach szkoleniowych. Wyrażam również zgodę na przetwarzanie moich danych osobowych dla potrzeb niezbędnych do otrzymywania informacji z firmy Ernst & Young Academy of Business sp. z o.o., ul. Armii Ludowej 26, Warszawa (zgodnie z Ustawą z r. o Ochronie Danych Osobowych, Dz. U nr 101 poz. 926, ze zm). Równocześnie oświadczam, iż poinformowano mnie o przysługującym mi prawie odwołania udzielonej zgody, co spowoduje niezwłoczne zaprzestanie przesyłania mi informacji handlowych.... Signature and data Company Stamp