International sources of authority
‐ Introduction to IFRS
‐ Framework
Develop an understanding on the need for IFRSs and possible barriers to this process :
• Explain the structure and constitution of the IASB and the standard setting process
• Identify the purpose and functions of the IFRIC
• Explain the nature and purposes of a conceptual framework
• Understand and interpret the IASB’s
“Framework”
• Describe the objective of financial statements and their qualitative characteristics
• Appreciate the IASB’s “balance sheet” approach
Preparation of External Financial Reports
(Part I)
‐ Statement of Comprehensive Income
‐ Statement of Changes in Equity
Understand the objectives of IAS 1 :
• Describe the structure and content of a statement of comprehensive income
• Discuss “fair presentation” and the accounting concepts/principles
• Identify items requiring separate disclosure including the accounting treatment and the required disclosures
• Prepare a statement of comprehensive income in accordance with the requirements of IFRSs
• Prepare and explain the contents and purpose of a statement of changes in equity
Presentation & Additional Disclosures
(Part II)
‐ Statement of Comprehensive Income
‐ Accounting Policies, Changes in Accounting Estimates and Errors
Recognize the circumstances where a change in accounting policy is justified
• Define prior period adjustments and account for the correction of errors and changes in accounting policies
Elements of Financial Statements (Part I)
‐ Revenue recognition
‐ Construction contracts and
inventories
‐ Non‐current assets – tangible
‐ Leases
‐ Intangible assets
‐ Agriculture
‐ Impairment of asset
‐ Exploration and evaluation
expenditure
‐ Provisions
‐ Employee benefits
‐ Taxation
‐ Financial instruments
Develop an understanding on the
underlying principles behind the following standards:
IAS 18, IAS 11, IAS 2, IAS 16, IAS 20
IAS 23, IAS 17, IAS 38, IAS 40, IAS 41
IAS 36, IAS 6, IAS 37, IAS 19, IFRS 2,
IAS 12
• Present financial statement and disclosure in accordance with the requirements of the standards
Presentation & Additional Disclosures
(Part IIII)
‐ Events after the Reporting Period
Distinguish between, and account for, adjusting and non‐adjusting events after the reporting period
Combined Entities and Joint Ventures
‐ Consolidations
‐ Equity‐accounting – associates
‐ Interests in joint ventures
Explain the concept of a group and purpose of preparing consolidated financial statement
• Prepare a consolidated statement of financial position for a simple group with associate dealing with pre and post acquisition profits, non‐controlling interest and goodwill
• Explain acquisition and equity method of accounting
• Account for and report the effects on intragroup trading and other transactions including unrealized profits, intra‐group balances and transactions
Elements of Financial Statements (Part
II)
‐ Changes in foreign exchange rates
‐ Share‐based payments
Develop understanding on the recording of transactions and retranslation of monetary items for individual entities as well a distinguish between and account for the difference between reporting and functional currencies
• Understand the principles behind sharebased payment to measuring both cash and equity settled share‐based payments transactions
Preparation of External Financial Reports
(Part II)
‐ Statement of cash flows
Identify the needs for statement of cash flow and assess the usefulness of information given
• Prepare the statement of cash flows including relevant notes for an entity
Presentation of Additional Disclosures
(Part III)
‐ Earnings per share
‐ Operating segments
Explain the relevance to the existing shareholders of the diluted EPS and what give rise to future dilution as well as to compute diluted EPS where there are convertible debt or preference shares are in issue or share options and warrants exists
• Define operation segments and prepare segment report in accordance with IFRS 8
Presentation of Additional Disclosures
(Part IV)
‐ Discontinued operations
‐ Related party disclosure
‐ Interim financial reporting
Explain the principles behind the discontinued operations, related parties transactions as well as interim financial
reporting
• Apply the disclosure requirements in each of the areas discussed
First Time Adoption
Describe the procedures to be adopted on
forst time adoption
• Understand the need for an opening IFRS
statement of financial position.
