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Financial Training Training

Financial Training

International Financial Reporting Standards Workshop

3 day

There are new rules for impairment and fair value accounting. The area of hedging will also be updated shortly. Accountants working with major banks and financial institutions need to stay abreast of these changes since the necessary overhaul of the standards will require huge resource planning in advance. Even despite changes in the accounting standards, accountants and auditors need to be better prepared and equipped to understand the complexities of today’s banking environment.

Course Objectives

The course level is intermediate and aimed at people who use company accounts to gain a grasp of what they mean and how they relate to business operations. Emphasis is placed on the international accounting standards and will include topics on leases, derivatives, fixed assets and inventories. The course is suitable for anyone with a good knowledge of accounting but needs to become familiar with the specifics of the International Accounting Standards. A comparison will be made between IAS and the American equivalent (The Financial Accounting Standards Board).

Course Agenda

Introduction to International Accounting Standards

  • Need for Accounting Standards
  • Development of Accounting and Financial Reporting
  • Reconciliation and Restatement Case Study
  • Major Differences in National Accounting Standards

Balance Sheet

  • Form of Balance Sheet
  • Classification of Assets
  • Classification of Liability
  • Stockholders Equity

Income Statement

  • Recognition and Measurement of Income
  • Impact on Legal Form of Financial Reporting
  • Major Components of the Income Statement
  • Offsetting Revenue and Expenses

Cash Flow Statement

  • Benefits of Cash Flow Statements
  • Exclusion of Non-cash Transactions
  • Gross v Net Basis
  • Reconciliation of Cash and Cash Equivalents

Financial Instruments

  • Bringing derivatives onto balance sheet
  • Disclosure Analysis
  • Problems with IAS 39
  • Cash Flow v Fair Value Hedges

Impact of IAS on Accounting for Treasury Products

  • Cash Flow v Fair Value Hedges
  • Marking to Market v Accrual Accounting (ie IAS v Existing Practice)
  • Hedging Relationship
  • Calculating Hedge Ratios
  • Calculating Hedge Effectiveness
  • Impact of Hedging on a Treasury basis

Treasury Risk

  • Interest Rate Risk
  • Foreign Exchange Risk
  • Implied Volatility (Options)
  • Assessing hedge effectiveness (regression & dollar offset methods)

Revenue Recognition Issues

  • Revenue recognition from the rendering of services
  • Revenue recognition from interest, royalties and dividends
  • Revenue Measurement
  • Impact of IAS 11

Accounting for Leases

  • Classification of Leases - Lessor/Lessee
  • Accounting for Leases - Lessor
  • Accounting for Leases - Lessee
  • Comparison US V IAS treatment

Accounting for Insurance Contracts

  • Overview
  • Application of IAS 39 to Insurance contracts
  • Embedded Derivative Issue
  • Other Issues
  • Summary Draft Statement of Principles
  • Definition of Terms

Accounting for Capital Instruments

  • Accounting for Debt and Equity Investments
  • Held to Maturity Classification
  • Transfer between Portfolios
  • Equity Method of Accounting

Off Balance Sheet Vehicles

  • Enron Case Study
  • Beneficial v Controlling Interest
  • New Standard update
  • Elan Case Study

Foreign Currency

  • Classification of Foreign operations
  • Transaction Methods
  • Guidance under IAS 21
  • Disclosure Requirements

Accounting Changes and Correction of Fundamental Errors

  • Importance of Comparability and Consistence in Financial Reporting
  • Changes in Accounting Policy
  • Changes in Accounting Estimates

  • Course Dates & Locations

Can't find a course date and location good for you? Let us know!

  • In-house Training

Run this course in house and tailored to your requirements.

Call +44 (0) 500 734 734 or enquire online.

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