Course Overview
International Financial Reporting Standards (IFRS) are a set of globally recognized accounting standards developed by the International Accounting Standards Board (IASB), an independent, not-for-profit organization. IFRS is currently adopted or being implemented by over 120 countries. All EU member states require IFRS for listed companies since 2005, and many major economies are in the process of convergence or adoption. IFRS promotes transparency, consistency, and comparability in financial reporting across organizations worldwide.
Key Features
This IFRS training course equips participants to:
- Understand and interpret financial statements
- Apply IFRS standards in practice
- Account for current and non-current assets and liabilities
- Classify and report investments appropriately
- Stay updated with amendments and new IFRS standards
- Assess the impact of IFRS on financial reporting
Learning Objectives
Participants will learn to:
- Describe the IFRS standard-setting process and identify currently available standards
- Understand recent updates to existing IFRS and evaluate their impact on the organization
- Present financial statements correctly, ensuring minimum disclosure for statements of financial position, comprehensive income, equity, and cash flows
- Properly account for transactions affecting assets, liabilities, revenues, and expenses in line with IFRS
- Apply professional judgment when handling non-routine business transactions under IFRS
Target Audience
- Finance and accounting professionals
- Accountants preparing financial statements
- Professionals seeking to enhance IFRS knowledge or implement IFRS reporting standards in their organizations
Training Methodology
The course employs interactive methods, including brief presentations, practical exercises, and group discussions to facilitate knowledge sharing and application. Pre- and post-course assessments measure learning outcomes and effectiveness.
Course Contents
Module 1 – Evolution of International Accounting Standards
- Introduction to IFRS: history, objectives, and overview of existing and upcoming standards
- Roles of standard-setting bodies
- Structure and objectives of the IASB
- IFRS adoption, convergence, and global demand
- Benefits, challenges, and issues in IFRS convergence
- IASB and FASB collaborative projects
Module 2 – Contract Profitability and Pricing
- Pricing strategies and tactics: cost-based, market-based, and value-based pricing
- Profit planning and cost estimation
- Evaluating market structure, risk, follow-on business, and profitability measures (including Z-scores)
Module 3 – Preparation and Presentation of IFRS Financial Statements
- Structure and content of general and specific elements of financial statements
- IAS 1 compliance
- Balance sheet and income statement preparation
- Statement of changes in equity or Statement of Recognized Income and Expense (SORIE)
- Cash flow statement presentation
- Consolidation criteria and requirements
- Notes and related disclosures
- Revenue recognition and reporting standards
Module 4 – IFRS Conversion Preparation
- Identifying and addressing accounting differences
- Accounting for inventory, fixed assets, revaluation, depreciation, deferred taxes, and contingencies
- Assessing technical accounting and tax implications
- Designing and implementing processes and infrastructure for IFRS adoption
- Change management strategies for smooth conversion
- Comparative analysis of companies adopting versus not adopting IFRS
Module 5 – Impact of IFRS on Financial Statement Interpretation
- Consideration of international accounting diversity
- Financial analysis techniques: common size statements, trend analysis, ratio analysis, DuPont analysis, Z-scores, investment and cash flow ratios
- Peer group and industry comparisons
- Importance of corporate governance and adherence to IFRS best practices
- Future IFRS developments and considerations
