Course Outline

DAY ONE

IABS Current Work

  • Current agenda topics
  • New IFRSs and IFRIC views
  • Changes to IFRS
  • Challenges faced in the implementation of IFRSs – Discussion

Group discussion: Challenges you are facing in your organisation when implementing the existing IFRSs and how the new changes could benefit

A New Leases Standard

  • Overview of current standard
  • Changes proposal
  • Definition of a lease – a lease and a service
  • Measurement of lease liabilities
  • Cash flow presentation
  • Disclosure and Transition

Group Work: Benefits and application of the new standard – issues and Challenges

Financial Instruments

  • Classifying financial assets
  • Initial and subsequent measurement of financial instruments
  • Financial asset impairment
  • De recognition
  • Difference between equity and liabilities
  • Accounting for financial liabilities

IFRS 9: Financial Instrument

  • A single and integrated standard
  • Classification and measurement. Comparison with IAS 39
  • Classification and measurement approach
  • Business model for managing financial assets
  • Contractual cash flow
  • Financial liabilities in IFRS 9
  • Own credit

Case study / Group Work: Assessing significant increases in credit risk since initial recognition and Recognition and Measurement of expected credit losses

Annual Improvements to IFRS. Amendments

  • IFRS 1 – First Time Adoption: Meaning of “effective IFRSs”
  • IFRS 3 – Business Combinations:
    • Scope exception for joint ventures
    • Accounting for contingent consideration in a business combination
  • IFRS 8 – Operating Segments:
    • Aggregation of operating segments
    • Reconciliation of the total of the reportable segments’ assets to the entity’s assets
  • IFRS 40 – Investment Property: Interrelationship between IFR 3 and IAS 40 when classifying property as investment property or owner-occupied property

IFRS 10. Consolidated Financial Statements

  • Definition of control – new approach
  • Exposure to variable returns – examples
  • Meaning of power
  • Changes from IAS 27 (control) and SIC 12 (risks and rewards)
  • Relevant activities – definition and examples
  • Potential voting rights – unexercised options and warrant
  • Protective rights – definition and examples
  • Substantive rights – description and examples
  • Franchise agreements
  • Options and warrants – in and out of the money
  • Business purpose and exit strategy
  • Typical characteristics of an investment entity
  • Exception to consolidation: Fair Value through P/L required
  • Treatment
  • Parents of an investment entity
  • Change in investment entity status
  • Amendments to IFRS 10, IFRS 12 and IAS 28 – investment entities
  • And consolidation exception
  • Participant discussion of when control exists

Examples from published accounts

DAY TWO

Impairment of Financial Assets

  • IAS 39 – recap of requirements
  • Incurred loss model – consequences of financial crisis
  • Assets carried at amortised cost
  • Available for sale assets and complications
  • Assets carried under cost exemption
  • IFRS 9, expected loss approach – overview
  • Measuring expected credit losses – present value measurement
  • Impairment at initial recognition
  • Stages 1, 2 and 3 – assessment of credit deterioration
  • 12-month expected credit losses and lifetime expected losses
  • Effects of changes in credit risk
  • Meaning of low credit risk

IFRS 15. Revenue from Contract with Customer

  • Problems with existing requirements under IAS 11 & 18
  • Withdrawal of IFRICs 13 and 15
  • Overview of IFRS 15 – 5-step approach
  • Identifying the contract:
    • Goods and services
    • Payment terms
    • Probability assessment of collection of consideration
  • Combining contracts
  • Contract modifications – separate contract?
  • Performance obligations:
    • Distinct goods and services and examples
    • Bundles of goods and services
    • Series of distinct goods and services
  • Satisfaction of performance obligation over time or at a point in time
  • Customer control of an asset
  • Indicators of transfer of control of asset
  • Conditions for performance obligation satisfied over time
  • Measuring progress for performance obligations satisfied over time
  • Recovery of costs incurred
  • Transaction price:
    • Variable consideration including constraining estimates
  • Significant financing components

IFRS 15. Revenue Recognition (continued)

  • Consideration payable to a customer
  • Measurement of refund liabilities
  • Allocation of price to performance obligations:
    • Relative stand-alone selling price basis
    • Estimates of stand-alone selling prices
  • Allocation of discounts
  • Contract costs – when can an asset be recognised?
  • Disclosure requirements:
    • Disaggregation into categories
    • Descriptions of performance obligations
    • Significant judgements applied
  • Software and telecoms industries
  • Examples:
    • Sales with right of return
    • Warranties
    • Principal or agent
    • Participant case studies – identifying performance obligations and
    • Determining pattern of revenue recognition
    • In practice, what will change?
    • Effective date – Jan 2017
    • Transition requirements

Other IFRS changes and Exposure Drafts

  • IFRS 14, Regulatory Deferral Accounts
  • Restriction to first-time IFRS adopters
  • Meaning of regulatory deferral account balance
  • Differences from other IFRS
  • IAS 16 & IAS 38 – amendments to depreciation and amortisation
  • Prohibition on methods linked to revenue
  • IFR3 and IAS 40 amendments – businesses and investment properties
  • IAS 24 Amendments – Related Party disclosures – key management
  • Personnel service
  • IAS 34, Interim Financial Reporting – disclosure ‘elsewhere in financial Report’
  • IAS 36 Amendments – recoverable amount disclosures
  • Interpretation of IAS 37
  • Interpretation of IAS 37
  • ED Proposed Amendments to IFRS 2
  • ED Proposed Amendments to IAS 7, Statement of Cash Flows – Disclosure
  • Initiative
  • Issues raised by regulators, FRC Corporate Reporting Review 2014
  • Common areas of challenge by FRC

Abu Dhabi National Exhibition Centre

Abu Dhabi National Exhibition Centre

Since last two years My Company is working with Simfotix, and every time it is great learning experience. MS Excel is one of the most recommended Program with distinctive methodology and valuable deliverables.

Etisalat

Etisalat

A very good training by Simfotix on HRBP with their International Partner Human Capital Institute. We covered high level including strategy.

Dubai Islamic Bank

Dubai Islamic Bank

Great training course and materials. Super helpful to learn shortcuts and their best application. Thank you!

Imdaad Group

Imdaad Group

The in-house training met the desired objectives for improvement in the Finance function. Group work throughout the two days and team presentation on various analytics put thing in the focus learning direction. Good output Simfotix.

Finance House Abu Dhabi

Finance House Abu Dhabi

Inhouse Training with Simfotix Training for Credit Transformation Program goes with a Wonderful learning experience of our Credit Risk Team. Looking forward to engage them in other upcoming training.

Abu Dhabi Terminals

Abu Dhabi Terminals

A combination of learning and sharing through activities and self presentations. Learning Art of Public Speaking with Simfotix Training is truly a good experience.

Arab Bank, UAE

Arab Bank, UAE

The session was engaging and informative. Overall program outcome is what we agreed and delivered to department.

Emirates Islamic Bank

Emirates Islamic Bank

Simfotix In-House training is well organized and our team learned lot of new things. We consider this as a value addition and meeting our objectives.

Ministry of Human Resources & Emiratization

Ministry of Human Resources & Emiratization

A very good training we attended with Simfotix Training.

Al Ghurair Group

Al Ghurair Group

Easy way of transferring knowledge makes the learning more digestible. Great work Simfotix for the in-house session of Advance Excel.

MAF Carrefour International

MAF Carrefour International

Thank you Simfotix for a comprehensive and value training to our Saudi Arabia Finance Team. Case Study and exercises were the key element of this workshop. As Learning & Development we are satisfied to work with them in future.

DU Telecom

DU Telecom

Selecting Simfotix as sour training and learning development supplier is a wonderful experience. They have done various inhouse programs. Their trainers carry in-depth knowledge and expertise and kept the participants well engaged.

The Executive Council of Dubai

The Executive Council of Dubai

Simfotix Trainer bear a Persuasive approach in training and the company is professional in the arrangement of training till end to make it a memorable experience. The In-house session and the follow-up session is excellent approach.

Department of Economic Development, Dubai

Department of Economic Development, Dubai

Excellent Training conducted by Simfotix Professional Development. The whole day was full of fun and learning in Advance MS Excel.

Course Materials

It is very important to analyze the need for Training along with the level of knowledge you require. This session give you a liberty to choose the modules you need, discuss it with the trainer how you want to be delivered, decide the place at your convenience and allocate number of hours to solve your problem. This does not include any development as a consulting but will include solution if you are facing a particular problem.