International Financial Reporting Standards (IFRS) Compliance and Application (10 Days)

Introduction

In today's global and competitive environment, the importance of robust Corporate Governance mechanisms and adherence to International Financial Reporting Standards (IFRS) cannot be overstated. This IFRS certification program emphasizes the necessity of Corporate Governance and IFRS by exploring abnormal practices like creative accounting and off-balance sheet financing. The study of financial accounting using IFRS draws attention to notorious cases such as Enron and WorldCom. Participants in this IFRS unit will focus on understanding and evaluating financial statements that comply with IFRS frameworks.

Objectives:

By the end of this IFRS certification course, participants will be able to:

• Recognize the relevance of Corporate Governance and International Financial Reporting Standards (IFRS).
• Understand ‘whipsaw’ and other creative accounting practices used in the preparation of financial statements by companies.
• Learn key lessons from high-profile business failures such as Enron and WorldCom.
• Appreciate the structure and content of the international framework of financial reporting standards.
• Comprehend the significance of IFRS and its critical role in today’s global economy.
• Gain a comprehensive understanding of the implications of IFRS, current challenges, convergence projects, and related frameworks.
• Prepare and present financial statements according to IFRS, including:
  • Statement of financial position (Balance sheet)
  • Statement of comprehensive income (Income statement)
  • Cash flow statement
  • Statement of changes in equity
  • Statement of recognized income and expense (SORIE)
  • Accompanying notes, including significant accounting policies
• Learn how to effectively train staff on the practical implementation of IFRS.
• Identify, evaluate, and analyze financial statements and assess the impact of IFRS on them.

Training Methodology:

• Just-in-time training through simulation
• Role-playing followed by discussion
• Case study analysis
• Case study simulations
• Problem-solving workshops
• Business case and workshop
• Analysis of critical success and failure factors

Course Outline:

Unit 1: Corporate Governance and International Financial Reporting Standards (IFRS)

• The necessity of Corporate Governance and IFRS.
• Assessment of aggressive accounting and off-balance sheet financing.
• Lessons from "Enron" and other cases of accounting malpractice.
• The role of Corporate Governance in corporate social responsibility.
• Addressing issues of convergence.

Unit 2: The Structure of IFRS

• Introduction to the adoption of International Financial Reporting Standards.
• International accounting regulation and reporting standards.
• International accounting standards in a globalized economy.
• The role of standing committees of interpretation in IFRS.
• The process and challenges of adopting IFRS.
• Current difficulties in IFRS convergence and the ongoing work to address them.

Unit 3: The Conceptual Framework for Preparing and Presenting Financial Statements

• Determining the objectives and importance of IFRS.
• Understanding the scope of Financial Reporting Standards.
• Identifying the framework to be adopted.
• Qualitative aspects of enterprise reporting.
• Recognizing and defining the key features of financial statements and the accounting process.
• Methods for analyzing components of financial statements.

Unit 4: Familiarization with Financial Reports

• Introduction to IFRS-based accounting standards, covering IAS 1, IFRS 1, IAS 8, IAS 10, IAS 18, and IFRS 8.
• Examination of the balance sheet.
• Structure of the income statement.
• Overview of the cash flow statement.
• Statement of changes in equity.
• Preliminary assessment of SORIE.
• Reports, including illustrative accounting policies and notes.

Unit 5: Financial Reports in Detail 1

• Presentation of financial statements under IAS 1, including cash flow statements.
• Accounting policies, changes in accounting estimates, and corrections of errors under IAS 8.
• Events and transactions occurring after the balance sheet date (IAS 10).
• Revenue recognition under IAS 18.
• Borrowing costs under IAS 23.
• Accounting for tangible fixed assets under IAS 16.
• Leases—operating and financial under IAS 17.
• Cash flow statements and summaries under IAS 7.

Unit 6: Financial Reports in Detail 2

• Business combinations (IFRS 3).
• Consolidated and separate financial statements (IAS 27).
• Impairment of assets (IAS 36).
• Provisions, contingent liabilities, and contingent assets (IAS 37).
• Intangible assets (IAS 38).
• Financial instruments: recognition and measurement (IAS 39).
• Financial instruments: disclosures (IFRS 7).
• Structure and content of annual reports and internal accounts, including explanatory notes.
• Survey of annual reports and accounts by country.

Unit 7: The Analysis of Accounting Information

• Principles of ratio analysis: who, why, what, and when.
• Standard size resource statements and their applications.
• Analyzing rates of change statements and ratios.

Unit 8: Tips for Analyzing Financial Reports Using Excel Spreadsheets

• Using formulas in Excel.
• Financial analysis functions.
• Data analysis ToolPak features.
• Creating graphs and charts to present data.

Unit 9: Comprehensive Review of Financial Reporting Information

• Managing working capital and cash flow.
• Exploring debtors (prepayments).
• Creditors (suppliers).
• Examining capital structure and specific reporting elements.

Unit 10: Applying Various Techniques

• Application of the Z-Score in firm performance analysis.
• Using quantitative and regression analysis to predict behavior.
• Working with case studies for in-depth exploration.