Course 3290: IPSAS - For Non-Financial Assets (2 days) Duration: Start date: Course level: Finish date: Location: Start time: CPE / CPD:

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1 Duration: Course level: Location: CPE / CPD: 2 days Overview Geneva 16 hours Start date: 26 Jun 2014 Finish date: 27 Jun 2014 Start time: 09:00 Finish time: 18:00 Price: GBP 1,750 EUR 2,400 Book this course Course introduction IPSAS aims to improve the quality of general purpose financial reporting by public sector entities, leading to better informed assessments of the resource allocation decisions made by governments, thereby increasing transparency and accountability. The International Public Sector Accounting Standards Board (IPSASB) issues accounting standards and other guidance relating to the financial reporting needs of national, regional and local governments, governmental agencies, and the constituencies they serve. The International Public Sector Accounting Standards (IPSAS) that have been issued by the IPSASB represent the first and only comprehensive set of authoritative international financial reporting standards for governments and other public sector entities. Preparers and users of IPSAS financial statements need to understand the specific measurement requirements for each type of asset, and the related impact on surplus or deficit or net assets. These requirements include complex annual impairment tests and the resulting write-down of asset values. For adopters of these Standards, who have previously operated under cash basis accounting, the identification, recognition and measurement of non-financial assets is one of the more challenging aspects. Issues range from measuring infrastructure assets to identifying all material assets owned or controlled. Indeed the treatment of nonfinancial assets has been one of the most common causes of qualified audit opinions for public entities. This twoday course provides comprehensive coverage of the various IPSAS dealing with non-financial assets and considers the practical issues faced by adopters of these Standards. The program answers questions such as: What are non-financial assets and which ones need to be recognised? Printed from on 8 Jan 2017 Page 1 of 7

2 What are non-financial assets and which ones need to be recognised? What are the various methods and options that are permitted for asset measurement? What asset measurement requirements and alternatives should be considered by IPSAS first-time adopters? How can transition the provisions be applied? What practical issues commonly arise when implementing IPSAS for managing the financial reporting of nonfinancial assets? What are the latest IPSAS developments regarding asset measurement? IPSAS are based on the International Financial Reporting Standards (IFRS), formerly known as IAS. IFRS are issued by the International Accounting Standards Board (IASB). IPSASB adapts IFRS to a public sector context when appropriate. In undertaking that process, the IPSASB attempts, wherever possible, to maintain the accounting treatment and original text of the IFRS unless there is a significant public sector issue which warrants a departure. The IPSASB s goal is to serve the public interest by developing high quality accounting standards for use by public sector entities around the world in the preparation of general purpose financial statements. This will enhance the quality and transparency of public sector financial reporting and strengthen public confidence in public sector financial management. In pursuit of this objective, the IPSASB supports the convergence of international and national public sector accounting standards and the convergence of accounting and statistical bases of financial reporting where appropriate. A number of countries have transformed their accounting systems to accrual accounting based on IPSAS. Several other countries have adopted the Cash Basis IPSAS as a first step to future full accrual accounting based on the IPSAS. The European Commission (EC), the International Federation of Accountants (IFAC), and the Organization for Economic Co-Operation and Development (OECD) are now using IPSAS. The United Nations (including all their agencies) are currently making the transition to IPSAS. Topics High level Introduction to IPSAS Key differences between financial and non-financial assets Explanation of Various Measurement Bases discussed in the Conceptual Framework Historical cost Market value Current cost Depreciated replacement cost Realizable value Present value Inventory (IPSAS 12) Printed from on 8 Jan 2017 Page 2 of 7

3 Nature of inventories held by public entities Initial cost Valuation methods Inventory write-downs Interim period valuation considerations Property, Plant & Equipment (IPSAS 17) Identifying operating properties Cost and initial recognition Subsequent measurement methods Revaluation method Depreciation treatments Asset disposals and abandonments and relevance of IFRS 5 Treatment of heritage assets Capitalization of borrowing costs (IPSAS 5) Valuation disclosures Treatment of infrastructure and heritage assets Practical issues for first time adopters when transitioning from cash to accruals basis Investment Property (IPSAS 16) Distinguishing investment property from operating property Initial and subsequent measurement Transfers in and out of investment property Fair value methods Assets arising under leases (IPSAS 13) Initial recognition Measurement considerations over the term of the lease Contingent rents Recent developments Intangible Assets (IPSAS 31) What are intangible assets? Purchased intangibles Internally generated intangibles Research and development phases Initial cost Subsequent expenditures Printed from on 8 Jan 2017 Page 3 of 7

4 Amortization Derecognition IPSAS 21 & 26 Impairment of Non-Cash-Generating Assets & Impairment of Cash-Generating Assets When is an impairment review required? Value in use approaches Fair value less costs to sell Recognition of impairment losses and reversals Disclosures Treatments of other non-financial assets: Prepayments Contingent assets First-time Adoption under IPSAS 33 and application to non-financial assets Transition provisions Managing the transition process New Developments Teaching method Group live instruction with interactive participation encouraged Review of the rationale, objective and scope of IPSAS requirements on financial reporting on non-financial assets Description and explanation of IPSAS requirements in clear and simple language Use of case studies and real-world examples to illustrate practical application of the standards Interactive participation will be encouraged All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials Prerequisites Understanding of basic accounting principles based on any national standards in the public sector. No advance preparation is required for this course. Printed from on 8 Jan 2017 Page 4 of 7

5 Course benefits Understand Accrual Based IPSAS requirements, for non-financial assets Implement the IPSAS recognition and measurement rules for assets Learn the requirements for presentation and related disclosures on non-financial assets in IPSAS compliant financial statements Understand transitional provisions in IPSAS standards Increase planning opportunities through awareness of likely future IPSAS changes Learn the sources of IPSAS guidance that are available Who should attend? Managers and staff of public sector finance teams embarking on IPSAS transition projects Fixed asset controllers and accountants Government officials responsible for IPSAS implementation projects Finance managers and staff who are migrating from the private to public sector Financial consultants supporting IPSAS implementations Internal and external auditors CPE / CPD Accreditation NASBA IASeminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: Field of study: Accounting ICAEW Partner in Learning IASeminars is proud to have been named as an ICAEW Partner in Learning, working together to offer the ICAEW IFRS Certificate to our clients worldwide. ICAEW (The Institute of Chartered Accountants in England and Wales) is a world leading professional membership organisation that promotes, develops and supports over 145,000 chartered accountants worldwide. CPE certificates obtained from attending IASeminars courses are an ideal way for ICAEW Printed from on 8 Jan 2017 Page 5 of 7

6 members and others to demonstrate their continuing professional development, provided that the topic is relevant to their learning and development needs. New York State Board of Public Accountancy IASeminars is registered with the New York State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: This registration does not constitute an endorsement by the Board as to the quality of our CPE Program. Texas State Board of Public Accountancy IASeminars is registered with the Texas State Board of Public Accountancy as a CPE sponsor. Our CPE Sponsor ID is: This registration does not constitute an endorsement by the Board as to the quality of our CPE Program. Venue This event will be held at Starling Hotel Geneva. Detailed Joining Instructions are sent to all registered delegates by approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available. Coffee and lunch will be provided. Instructor(s) Alan Mayo Alan Mayo is a highly experienced instructor in the field of international financial reporting, with a particular professional interest in IFRS for oil and gas companies and also in IPSAS for the public sector. He is a UK chartered accountant with over 20 years of experience as an auditor and consultant with PricewaterhouseCoopers in both London and Paris. A founding member of the PwC Client Training business in London, Alan delivered courses on financial reporting and financial management to a wide range of PwC clients. Alan regularly instructs courses on international oil and gas accounting, and he has delivered in-house programmes for such organisations as ENI, Petronas, Kogas, Saudi Aramco, Nigerian Liquefied Natural Gas and the Ugandan Revenue Authority. He previously worked as an auditor on the privatisation of British Gas, and taught financial reporting and financial controllership programmes for Shell. Alan also managed a team within PwC that provided training and change management support to UK public sector agencies as they transitioned from cash to accruals based accounting, including the Foreign and Commonwealth Office and the Ministry of Defence. His current work includes supporting UK local authorities and not for profits in developing the financial management skills of their staff, and he has worked extensively with the UN and other international organisations in their transition to IPSAS. An independent training consultant since 2001, Alan has been a senior instructor with IASeminars since Printed from on 8 Jan 2017 Page 6 of 7

7 In House To bring this course in-house please contact us and we will be pleased to assist Printed from on 8 Jan 2017 Page 7 of 7