Programme Objective

This two-day course provides an insight into the salient technical features of the three new Standards. The course uses practical case studies to illustrate how the three Standards are interrelated to each other. Depending the contractual terms, all the three new Standards could be applied in a single contract. The delegates will gain a working knowledge on how to apply these three Standards in practice and to understand the impact on financial position (effect gearing ratios), financial performance (timing and amount of income and expense) and cash flows.

Programme Outline

Day 1
IFRS15 Revenue from Contracts with Customers
 
THE FIVE PRACTICAL STEPS OF APPLYING IFRS15
Step 1  Identifying and assessing existence of a contract with customers
Step 2  Establish present obligation(s) in the contracts
Step 3  Determining the transaction price
Step 4  Allocating the transaction price
Step 5  Recognise revenue upon transfer of control at a point-in-time or over time
 
RECOGNITION ISSUES

• Dealing with “revenue contract”
  • What is a contacts and how to identify the existence of such contracts
• Dealing with “performance obligations”
  • Deciding goods or services that are distinct, a bundle of distinct or a series of distinct
  • Decide whether control transferred at a point in time or overtime

 
MEASUREMENT ISSUES

• Transaction price
• Allocation of transaction price to performance obligations

 
DEALING WITH CONTRACT COSTS

• Deciding the methods of amortising contract cost when revenue is recognised
• Under what circumstances contract costs can be impaired

 
PRESENTATION AND DISCLOSURE

• Presenting revenue in the main financial statements
• Qualitative and quantitative disclosure

 
TRANSITIONAL PROVISIONS

• Dealing with transition from existing Standards to IFRS 15

 
Day 2
IFRS9 Financial Instruments

• To highlight the similarity and salient difference between IAS39 and IFRS9:
  • How financial assets and financial liabilities are recognition and derecognition
  • How to classification of financial assets and financial liabilities
  • The measurement issues:
    • Determining fair value – interaction between IFRS9 and IFRS 13 Fair Value Measurement
    • The use of effective interest rates methods for different types of financial instruments
  • Impairment of financial assets:
    • Comparing the ‘incurred loss model’ with the ‘expected loss model’
    • The accounting requirements for loan losses and interest income
  • A quick comparison of hedge accounting under IAS39 and the new Standard
• Transiting from IAS39 to IFRS9

 
IFRS16 Leases
The overall technical issues

• Scope of the Standard
• Identification of a lease – determining whether a contract contain a lease element
• Short-term lease Vs. long-term lease
• Low value lease of assets

 
Lessee accounting:

• Determining the lease term and the amount of lease payments
• Determining the right-of-use assets and the corresponding lease liabilities
• Presentation and disclosure

 
Lessor accounting:

• Classifying finance lease and operating lease
• Recognition and measurement issues

 
Lease of properties

• Present value of the minimum lease payments
• Determining the discount rate
• The accounting profile for lessor and lessee

 
Sale and lease back transactions

• Deciding whether a transfer of asset is a sale
• Accounting when transfer of asset is a sale and when it is not a sale­­­

Training Methodology
Lectures and illustrations with open discussions
 
Closing Date for Registration
1 week before programme or until full enrolment.
 

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a concise practical course that can comprehensively cover the principles of the three new Standards, as well as a discussion on the potential changes and updates on the current Generally Accepted Accounting Practice are welcome to attend.

Programme Facilitator(s)