Recent Updates to IFRS that Accountants need to know. July 2020.
WHAT YOU WILL LEARN
By the end of this event the participant should:
- Understand the impact of COVID-19 on effective standards (IFRS 9, IFRS 15 and IFRS 16);
- Understand IFRS 9 Financial Instruments (excluding de-recognition and hedging);
- Understand IFRS 15 Revenue from Contracts with Customers;
- Understand IFRS 16 Leases; and
- Get an overview of IFRS 17 Insurance Contracts, and the Conceptual Framework.
The IASB in recent years have introduced significant changes that will materially affect measurement and disclosure in financial statements. These accounting standards include: IFRS 9 Financial Instruments, IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases. These standards are already effective for companies reporting on IFRS.
While many people realise the tremendous impact that the global COVID-19 pandemic has on the economy, it should also be noted that the pandemic has an impact on how to report on the above-mentioned standards.
Join an IFRS specialist as he unpacks these standards.
The following pricing apply:
Ad hoc: R575.00
Subscription: Included for free in Accountant in Practice plus Tax and Accountant in Practice packages.
Study Unit 1
IFRS 15 – Introduction
- How COVID 19 impacts revenue recognition
Study Unit 2
IFRS 15 – The 5 step approach to achieve clarity
Step 1 – Identify the contract with the customer:
- Importance of the contract.
- Criteria for a valid contract for revenue recognition.
- Treatment of money received in advance.
- Contract modifications.
Step 2 – Identify performance obligations in the contract:
- The starting point – promises in the contract.
- Distinct goods and services in the contract.
- Illustrative examples of determining whether goods and services are distinct.
Step 3 – Determine the Transaction Price:
- What is the transaction price?
- Is it different from current standards?
- How to account for variable consideration.
- How to identify a financing component in the transaction price.
Step 4 – Allocation of the transaction price to the performance obligations:
- Understanding the basis of the allocation.
Step 5 – When & how should revenue be recognised?
- Understanding the notion of control.
- Testing whether goods and services should be recognized over a period of time.
- How to measure progress over a period of time.
- Indicators of control being transferred at a point in time.
Study Unit 3
IFRS 15 – Disclosure of Revenue.
- The importance of relevance and materiality.
- Disaggregation of the contracts.
- Significant judgements.
Study Unit 4
IFRS 9 – Financial Instruments
- Classification of assets and liabilities:
- Classification criteria for amortised cost and fair value through OCI.
- Decision tree for classification of financial assets.
- Initial and measurement.
- Transaction costs.
- Fair value adjustments.
Expected credit losses (ECLs)
- General approach vs simplified approach.
- Significant increase in credit risk.
- Measurement of ECLs.
Study Unit 5
IFRS 16 – Leases
- Identifying a lease
- Recognition of lease for lessee accounting
- Lease modifications
- Lessor accounting
There are no preconditions for this course.
Recorded webinar made available on a specified date
Milan van Wyk CA(SA)
Milan van Wyk is a qualified Chartered Accountant CA(SA). He obtained his B.Acc degree (Cum Laude) at the University of the Free State in 2007 and his B.Acc (Hons) degree in 2008.
He is currently lecturing accounting at Honours level at the University of Johannesburg. He is also involved in the JSE Proactive Financial Monitoring Project where financial statements of companies listed on the JSE are reviewed on a rotational basis in a five-year cycle for IFRS compliance.
By attending this webinar, you will be provided with:
– Summarised slide presentation.
– Reference documents and / or course material where available.
– Access to a technical knowledge base.
– Recorded webinar that includes an expert presenter and participant interaction.