IFRS Accounting Standards e-learning series

Concept of international financial reporting standards

Main features of the Conceptual Framework

Qualitative characteristics of useful financial information (fundamental and enhancing)

Main features of the IFRS and IAS standards

Different measurement bases, such as historical cost and current value, including fair value, value in use, fulfilment value and current cost)

Definition of control

Main aspects of the primary financial statements

Concept and definition of inventory

Items to be included in the cost of inventory

Definition of overheads

Rules for recognition and derecognition of inventories

Measurement rules

Methods of inventory valuation (standard cost, weighted average cost, FIFO method)

Net realisable value

Provision (write-down) against inventories and reversal of provision

IAS 2 standard's disclosure requirements

Cash equivalents and non-cash items

Two approaches (direct – indirect) to produce cash flows from operations

Main categories of cash flows

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Basic steps of preparing statements of cash flows based on the IAS 7 standard

IAS 7 standard's disclosure requirements

Concept and definition of accounting policies, accounting estimates, materiality and errors

Situations where accounting estimates are used

Changes in accounting policies and changes in accounting estimates

Prospective and retrospective application is the correct approach

Proper accounting treatment for the retrospective approach

Proper accounting treatment for the retrospective approach

Correct accounting treatment of prior period errors through scenarios

IAS 8 standard's disclosure requirements

Adjusting and non-adjusting events

Proper accounting treatment or disclosures for adjusting and non-adjusting events

Concept of going concern and its relation to IAS 10

IAS 10 standard's disclosure requirements

Concept of deferred taxes and current taxes

Situations when there is a need to account for deferred taxes and learn about recognition exemptions

Amount of deferred taxes by applying the correct tax rate

Deferred tax asset or a deferred tax liability

Effects of under- or overestimation of current tax balances in previous years

Correct journals for current and deferred income taxes

IAS 12 standard's disclosure requirements

Definition of property, plant and equipment

Type of costs which should and should not be included in the value of property, plant and equipment at the time of initial recognition

Proper accounting treatment under the component-based approach

Depreciation of property plant and equipment

Correct accounting treatment of subsequent expenditures

Correct accounting journals for a disposal of property plant and equipment

IAS 16 standard's disclosure requirements

Accounting treatment of defined benefit plans according to IAS 19 – Employee Benefits standard

Proper discount rate under IAS 19

Disclosure requirements under IAS 19 for defined benefit plans

Government grant and government assistance in the scope of IAS 20

Grants related to assets and grants related to income

Proper accounting treatment in the case of grants related to assets and grants related to income

Monetary and non-monetary items

Exchange rates to be used to translate different transactions in foreign currency

Cumulative translation adjustments

Identifying the functional currency by using the primary and secondary indicators determined by IAS 21

Qualifying assets

Borrowing costs eligible for capitalisation

Appropriate period of capitalisation

Recognition principles of borrowing costs

Amount to capitalise

IAS 23 standard's disclosure requirements

Underlying principle of IAS 27 standard

Separate financial statements required to be prepared by an entity

Accounting methods for investments in subsidiaries, joint ventures and associates in the separate financial statements

Accounting treatment of investment related dividends

Impairment considerations

Derecognition rules of investments

IAS 27 standard's disclosure requirements

Objectives and scope

Significant influence

Equity method

Disclosures

Investments that must be accounted for using the equity method under IAS 28

The carrying value of the investment and share of the profit or loss of associate or joint venture applying the equity method and define disclosure requirements

Entities which are obliged to present earnings per share in their financial statements

Basic earnings per share with different types of share issues

Diluted earnings per share with various securities which might have a diluting effect on the figure of earnings per share

Scope of IAS 36 standard and situation when to apply IAS 36 standard

When to perform an impairment test

Distinction between a triggering event review and an impairment test

Indicators of impairment

Recoverable amount as the higher of value in use and fair value less costs to sell

Cash-generating units

Steps for allocation of impairment for a cash generating unit

IAS 36 standard's disclosure requirements

Concept and key characteristics of provisions

Concept of contingent liabilities and contingent assets

Distinguishing contingent liabilities from liabilities and provisions

Definition of “probable”

Recognition criteria for provisions

How to measure provisions in different situations

Accounting treatment of provisions, contingent liabilities and contingent assets

Specific type of provisions, like onerous contracts and restructuring provisions

IAS 37 standard's disclosure requirements

Definition of intangible assets

Different types of intangibles, such as internally generated, separately acquired and acquired through business combination

Recognition criteria for different types of intangibles

Initial measurement requirements of IAS 38 standard

Subsequent measurement methods for accounting intangible assets

Concept of intangible assets with finite and indefinite useful lives

Criteria for impairment

IAS 38 standard's disclosure requirements

Investment property and owner-occupied property

Appropriate recognition

Measurement and accounting treatment and identification the related disclosures

Objectives and scope

First IFRS financial statements

Accounting policies

Mandatory exceptions

Optional exemptions

Presentation and disclosure

Relevant standards related to financial instruments

Concept of financial assets and financial liabilities

Different types of financial assets and financial liabilities

Debt or equity instrument according to IAS 32 standard

Factors of business model assessment to be able to define appropriate business models for financial assets

Whether an instrument meets the SPPI (solely payment of principal and interest) test

Concept of fair value and amortised cost

Classification of financial instruments into one of the following categories: amortised cost, fair value through other comprehensive income and fair value through profit or loss

Recognition and measurement rules based on classification

IFRS 9 standard's requirements for derecognition and modification of financial assets and financial liabilities

Introduction: Financial instrument and the scope of IFRS 9

Classification and measurement: Assets/Liabilities, What is amortised cost measurement?, Fair Value Hierarchy, Business Model Assessment, Cash flow characteristics 

Impairment: Expected credit losses model 

Derecognition: Financial instruments/assets, Liabilities/Assets, Debt restructuring 

Debt vs. Equity: Classification principles

Purpose of consolidation and when it needs to be carried out

Definition of main concepts related to consolidation, such as parent, subsidiary, group, control, non-controlling interest

Three basic steps of consolidation

Types of adjustments need to be made in consolidation

Non-controlling interest

Goodwill or gain on bargain purchase

Intra-group transactions and balances

Basic steps of preparing a consolidated statement of financial position and consolidated statement of total comprehensive income

Objectives and scope

Joint control

Classification of joint arrangements

Measurement - Accounting

Disclosures

Underlying principle of IFRS 13 standard and fair value measurement

Fair values are out of the scope of IFRS 13 standard

5 steps of fair value measurement

Fair values for assets and liabilities

Different valuation techniques (market-, income- and cost approach)

Preferred method for measuring fair value

Main focus of fair value disclosures according to IFRS 13 standard

Scope of the IFRS 15 standard

IFRS 15 standard's 5 step approach

Contract with the customer, including situations of contract combination and contract modification

Performance obligations in the contract

Transaction price by understanding the complexities including the effects of variable consideration, significant financing component, non-cash consideration, variable consideration, etc.

Transaction price

Revenue recognition pattern at a point in time or over time

Features of a contract which indicate that the contract contains a lease

Substantive substitution rights

Suppliers’ protective rights

Transaction prices when separating components of a contract

Variable payments in a contract

Criteria for recognition and measurement exemptions

Lease term

Lessee accounting

Lessor accounting

Key changes to primary statements under IFRS 18

Principles for aggregation and disaggregation under IFRS 18

Categorising income or expense items

Rules for classifying specific items under IFRS 18

Management-defined performance measure under IFRS 18

Comparison between IFRS and US GAAP along the following topics:

• Provisions

• Employee Benefits/ Pensions

• Revenue Recognition

• Financial Instruments

• PP&E/ Intangible Assets/ Inventories/ Offsetting/ Consolidation