Programme Objective
This two-day workshop provides a comprehensive coverage of the complex issues facing first-time adopters by using practical case studies including a discussion of available strategies for deciding and choosing accounting policies and the optional exemptions in applying the chosen accounting policies at date of transition.
 
The main focus of this seminar is to examine the first-time adoption provisions contained in IFRS 1, to explain the various transitional options available and to provide pointers to preparer and auditor in order to choose the appropriate transitional options. The seminar:

• provides practical illustrations and implementation guidelines on applying the “mandatory exceptions” and choosing the “optional exemptions”
• shows how to design and use spreadsheet for handling the transition process 
• explains ‘when’ (timing of transition) and ‘how’ (methodology use in transition) to incorporate the transition process from working papers to accounting systems
• provides guidance on how to collect transition information for presentation and extensive disclosure requirement of IFRS 1 for:
  • the first quarter of the interim financial statements
  • the annual financial statements

Programme Outline

• The Fundamental Principles

• Determining the transition date
• The “retrospective approach”
• Introduction to retrospective approach and exceptions
• Recognition & measurement of assets and liabilities
• Preparing the opening IFRS statement of financial position at transition date

• Mandatory Exceptions’ to retrospective approach:

• Use of estimates
• Derecognition of financial assets and financial liabilities
• Hedge accounting
• Non-controlling interests

• Optional Exemptions’ to retrospective approach:

• Strategies for dealing with business combinations (IFRS 3)

• How to decide whether to apply IFRS 3 prospectively or retrospectively
• Interaction between IFRS 3 and consolidated financial statements IFRS 10
• Adjustment to goodwill arising from:

• Recognition and measurement of intangible assets
• Impairment test at date of transition

• How to choose which optional exemptions from other IFRSs

• Share-based payment transactions
• Insurance contracts
• The exception rules in using fair value as deemed cost in:

• Property, plant and equipment
• Investment property
• Intangible assets
• Rate regulated activities
• Event driven – Initial public offering or privatisation
• Oil and gas properties in development or production phases
• Investments in subsidiaries, jointly controlled entities and associates

• Assets and liabilities of subsidiaries, associates and joint ventures
• Leases – How and when to determine an agreement containing a lease (IFRIC 4)
• Employee benefits
• Cumulative translation differences
• Compound financial instruments
• Designation of previously recognized financial instruments
• Decommissioning liabilities included in the cost of property, plant and equipment (IFRIC 1)
• Fair value measurement of financial assets or financial liabilities at initial recognition
• Financial assets or intangible assets accounted for under IFRIC 12 Service concession arrangements
• Borrowing costs
• Transfers of assets from customers
• Extinguishing financial liabilities with equity instruments
• Short-term exemption from IFRSs 

• Disclosures about financial instruments
• Investment entities 

• Presentation and Disclosure Requirements

• Disclosure of comparatives – converting previous GAAP to IFRS
• Preparing and presenting reconciliation statements for:

• Statement of financial position
• Statement of profit or loss and other comprehensive income

• Explanation for effect of difference between previous GAAP and IFRS
• Interim financial statements

• Other transition issues to consider:

• Choosing accounting policies under IFRSs
• Deciding which optional exception to implement the chosen accounting policies
• Considering possible impact to accounting operations during the transition period
• Implementing the changes and staff training
• Date of valuation report (determining fair value at date of transition)
• When to start to transition process – the timing
• How to carrying out the transition process

• Operating parallel reporting systems for the comparative period
• Using spreadsheet 

• How to extract accounting information to prepare:

• the comparatives for the first IFRS financial statements
• the reconciliation statements show the effect of transition from FRS and IFRS

Intended For

An Intermediate to Advanced level programme intended for personnel in accounting department, accountants, auditors (internal and external), members of audit committee, finance directors and regulators.