Application of International Financial Reporting Standards (IFRS)

Client Relations Officer

- Warsaw & Kraków groups

Ma

ł

gorzata Tryc

tel. +48 22 579 82 43

malgorzata.tryc@pl.ey.com

- Pozna

ń

group

Katarzyna Pudelska

Tel. +48 61 856 29 00

katarzyna.pudelska@pl.ey.com

- Wroc

ł

aw group

Beata Kaputa

Tel.+48 71 375 10 06

beata.kaputa@pl.ey.com

academyofbusiness@pl.ey.com

Ernst & Young

Academy of Business

al. Armii Ludowej 26

00-609 Warszawa

Tel. +48 22 579 80 00

Fax +48 22 579 80 01

Application of

International Financial

Reporting Standards

(IFRS)

►

International Financial Reporting Standards is a programme

covering existing International Accounting Standards (IAS),

International Financial Reporting Standards (IFRS) and IFRIC

interpretations. Up to and including IFRS 8

►

Comprehensive course materials provided

►

Interactive training based on exercise solving and discussion of

real-life scenarios

►

Progress tests throughout the programme to assess the

knowledge of participants

►

Diploma awarded upon completion of the programme and passing

of the final exam

Objectives and advantages

►

To apply advanced accounting principles and techniques in

a practical context.

►

To evaluate and apply various international standards.

►

To analyse, interpret and report on financial statements and

related information to different user groups.

►

To ensure that preparers and users of financial statements are

up-to-date with current amendments and requirements of IFRS.

Who for

Accountants, chief accountants, controllers and finance managers who would like to understand, interpret

and apply IFRS. The course assumes knowledge of basic accounting procedures and double entry

bookkeeping. No prior knowledge of accounting standards is required.

Course structure

The course is composed of a mixture of lectures, question and answer sessions, practical exercises and illustrations as well as home study.

The programme is divided into four modules, each consisting of three days of training with about three weeks’ break between the course days. During the time between courses participants are expected to study at home in their own time and solve tests. Tests are marked by the Ernst & Young Academy of Business team and sent back to participants together with the solutions.

An e-mail hot line is available to facilitate contact with the tutor if any problems or questions regarding homework assignments should arise.

It is possible to participate in selected modules only.

Materials

Participants receive comprehensive course notes in Polish, which include a theoretical component summarizing the key elements of IFRS as well as practical tests and solutions.

There is also a possibility (only for this course participants) to purchase the training materials in English at additional cost.

· 200 zł + 23% VAT – the cost of materials to the whole programme or

· 80 zł + 23% VAT – the cost of the materials for each module

Examination

The programme finishes with a two and a half hour written examination. After passing the exam with a positive result (at least 50 % of the total marks), those students who have attended the whole course receive an Ernst & Young Academy of Business diploma.

The examination will cover only the topics discussed at the course.

Costs

Each module consisting of three full training days costs PLN 2,550 +23% VAT. For those wishing to complete the full course and paying for the whole programme upfront, the cost is

PLN 9,100 +23% VAT per person.

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The price includes course participation and materials for individual home-study. Payment should be made before commencement of each module on the basis of a pro-forma invoice. After payment has been made, each participant will receive an invoice.

How to apply?

If you are interested in the IFRS Programme, please complete the attached application form and return it to us by fax at least one week before the start of the course.

www.academyofbusiness.pl

The programme

M

1

Part A

§ Introduction to International Financial Reporting Standards (IFRS)

­ Basic historical background to financial reporting and accounting internationally.

­ Structure of the International Accounting Standards Board including current developments and

discussion of the work of the International Financial Reporting Interpretations Committee.

­ Role of International Financial Reporting Standards in European Union countries and the United States.

­ The Standard Setting process.

­ IFRS Framework for the Preparation and

Presentation of Financial Statements with emphasis on basic accounting concepts and the definitions of assets, liabilities, revenue, costs and equity.

§ Presentation of Financial Statements ­ The current format of financial statements.

­ The operating cycle relevant to specific business activities and the classification of assets and liabilities into current/non current.

­ Minimum requirements regarding the presentation of items in the income statement/statement of

comprehensive income and statement of financial position/balance sheet; presentation of illustrative formats.

­ Statement of changes in equity.

­ Interim reporting.

§ Inventories

­ Measurement at recognition: purchase price, cost of conversion, other costs included in the valuation of inventory.

­ Net realizable value – definition and practical examples of valuation.

­ Standard costing and retail methods.

­ Various methods of apportioning costs to units: FIFO and weighted average.

§ Revenue Recognition

­ Basic revenue categories: from sale of goods, provision of services, interest, royalties and dividends.

­ Conditions for revenue recognition.

­ Fair value measurement: discussion of the need for discounting future cash flows when revenue is to be received in the future; accounting for discounted revenue.

Part B

§ Property, Plant and Equipment

­ Measurement at recognition: costs to be capitalized at initial recognition (purchase price, production cost, costs of removing the asset at the end of its useful economic life).

­ Definition of depreciable amount; various depreciation methods: straight-line, diminishing balance, sum of digits, units of production.

­ Component accounting.

­ Measurement after recognition: cost model and revaluation model.

­ Accounting for revaluations and disposals of non current assets.

­ Changes in depreciation methods and revisions of useful life.

­ Presentation and disclosure of non current assets.

§ Borrowing Costs (loans, credits) ­ Definition of borrowing costs

­ Accounting treatment of borrowing costs under the revised IAS 23

­ Key issues related to capitalization: qualifying assets, capitalization period and capitalization rate.

§ Government Grants and Disclosure of Government Assistance

­ Grants related to income and grants related to assets.

­ Discussion of the two methods of accounting for government grants recommended under IAS 20.

§ Investment Properties

­ Definition and measurement at recognition of investment properties.

­ Criteria for classification as investment property; reclassification rules.

­ Valuation methods: cost model and fair value model; conditions for applying the fair value model, accounting for changes in fair value.

§ Events after the Reporting Date

­ Defining the period during which events after the reporting date arise.

­ Adjusting and non-adjusting events – practical examples and accounting treatment.

§ Accounting Policies, Changes in Accounting Estimates and Errors

­ Hierarchy of sources for choosing accounting policies.

­ Definition of past period errors and the accounting treatment applied to correction of errors.

Part C

§ Leases

­ Leasing agreements in the light of the substance over form principle.

­ Categories of leases and their impact on the financial statements of the lessor and the lessee.

­ Step by step guide to identifying whether a lease is finance or operating and the accounting entries required.

­ Methods of splitting payments under finance lease into interest and capital components including the sum of the digits and the actuarial methods.

­ Accounting for sale and leaseback transactions.

­ Disclosure requirements.

§ Substance over form

­ Most common issues requiring analysis of economic substance: sale and repurchase agreements, consignment sales, factoring of receivables, securitization of assets.

§ Construction Contracts

­ The nature of revenue and costs arising on long term contracts.

­ Methods of recognizing revenue and costs in the income statement/statement of comprehensive income: completed contract and stage of completion.

­ Practical guidelines on the choice of method for measuring the stage of completion.

­ Treatment of loss generating contracts.

­ Presentation of construction contracts in the balance sheet/statement of financial position.

­ Disclosure and presentation requirements for long term contracts.

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M

2

Part A

§ Statement of Cash Flows

­ The need for a statement of cash flows and how it is prepared from information contained in the income statement/statement of comprehensive income, balance sheet/statement of financial position and notes to the financial statements.

­ Definition of cash and cash equivalents; examples of items classified as both of the above.

­ The indirect and direct methods of constructing the cash flow statement.

§ Provisions, Contingent Liabilities and Contingent Assets

­ Definitions of provisions, contingent liabilities and contingent assets

­ Obligating events: legal and constructive obligations

­ Provisions for future operating losses and onerous contracts.

­ Measurement rules: defining the expenditure required to settle the obligation, discounting and unwinding of the discount.

­ Conditions for recognizing provisions for restructuring expenses.

­ Discussion of criteria for recognition in the statement of financial position or in the notes to the financial statements.

§ Introduction to Group Accounting

­ Methods of accounting for investments in individual company accounts and their impact on consolidated financial statements.

­ When to use the various methods of consolidation.

­ Definitions of a subsidiary, associate, jointly-controlled entity, control, joint-control, significant influence and other definitions relating to group accounting.

§ Consolidated Statement of Financial Position and Statement of Comprehensive Income

­ Step by step guide to the preparation of the

consolidated statement of financial position based on discussion of examples.

­ Goodwill and gain on bargain purchase.

­ Impairment of goodwill

­ Revaluation of the assets and liabilities of a subsidiary to fair value.

­ Non-controlling interests in the statement of financial position.

­ Consolidation adjustments eliminating:

· equity and investments,

· intra-group balances (trade, loans),

· unrealized profit on intra-group transactions arising from the transfer of inventory and non-current assets (including the impact on depreciation),

· Dividends.

­ Step by step guide to the preparation of the consolidated statement of comprehensive income based on discussion of examples.

­ Eliminating intra-group transactions from the

perspective of the statement of comprehensive income (sales, cost of sales, dividends).

­ The impact of transactions on non-controlling interests.

Part B

§ Consolidated Statement of Financial Position and Statement of Comprehensive Income

­ Continuation from the previous module. Examples and exercises illustrating specific issues in consolidation.

§ Related Party Transactions

­ Definition of related parties and the need to disclose transactions and balances with related parties.

­ Types of transactions requiring disclosure;

discussion of required level of detail of disclosures.

§ Deferred Taxation

­ Identifying taxable and deductible temporary differences.

­ Tax base of assets and liabilities.

­ Accounting for deferred tax assets and liabilities using the liability method.

­ Measurement and presentation of deferred tax assets.

­ Deferred tax balances.

Part C

§ Impairment of Assets

­ Identifying external and internal impairment indicators.

­ Measuring recoverable amount and identifying situations in which an impairment loss needs to be recorded.

­ Value in use under IAS 36 and how to calculate it.

­ Identifying cash generating units (CGUs); allocating impairment losses to specific assets in a CGU.

­ Reversal of impairment losses.

§ Intangible Assets

­ Discussion of definitions.

­ Conditions for recognition of intangible assets:

identifiability, control, future economic benefits, reliable measurement.

­ Intangible assets identified in business combinations.

­ Treatment of research and development costs.

­ Treatment of goodwill.

§ First time adoption of international standards ­ The scope of IFRS 1 – definition of entities applying

international standards for the first time

­ Rules relating to first time adoption of IFRS: defining the reporting date and the date of transition to IFRS, applying compulsory and voluntary exemptions, impact on comparatives.

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M

3

Part A

§ Earnings per Share

­ Methods of calculating basic and diluted earnings per share.

­ Impact of issue of shares at full market price, share splits, bonus issues and rights issues on the weighted average number of shares and comparatives.

­ Treatment of potential ordinary shares: options, convertible preference shares, convertible loans and convertible debentures.

­ Determining the order in which potential dilutive factors are included in the calculation of the weighted average number of shares.

­ Earnings per share for continuing operations.

§ Segment Reporting

­ The necessity for segment reporting.

­ Definition of operating segment and Chief Operating Decision Maker.

­ Discussion on the criteria for presentation of separate segments.

­ Inter-segment transactions.

­ Discussion on the changes required by IFRS 8: Operating segments.

§ Non-current Assets Held for Sale and Discontinued Operations

­ Non-current assets held for sale – classification criteria.

­ Measurement of non-current assets held for sale at the date of classification.

­ Accounting for disposal groups.

­ Discussion of when discontinued operations arise and the disclosure requirements in IFRS 5.

­ Accounting for discontinued operations in comparatives.

Part B

§ The Equity Method

­ Accounting for associates in the standalone and consolidated financial statements.

­ Discussion, based on an example, of the treatment of an investment in the statement of financial position and statement of comprehensive income under the equity method.

­ Elimination of unrealized profits from transactions between investor and associate.

­ Goodwill and gain on bargain purchase.

§ Proportionate Consolidation ­ Accounting for joint ventures.

­ Discussion, based on an example, of proportionate consolidation with reference to the statement of financial position and statement of comprehensive income.

­ Jointly controlled operations, assets and entities.

§ Business combinations

­ Discussion of how the revised FRS 3 has changed consolidation/group accounting.

­ Deferred and contingent consideration.

­ Remeasurement of assets, liabilities and contingent liabilities at fair value. Impact of remeasurement on the date of acquisition in the consolidated statement of financial position – fair value adjustments in subsequent years.

§ Changes in Foreign Exchange Rates and Consolidation of Foreign Subsidiaries ­ Functional and presentation currencies.

­ Criteria considered in selecting the functional currency.

­ Accounting for foreign currency transactions on initial recognition, settlement and balance sheet dates.

­ Recognition of exchange differences.

­ Translating the results and financial position of foreign subsidiaries included in the consolidated accounts.

­ Rules for applying foreign exchange rates to assets, liabilities, equity, income and costs.

­ Recognition of exchange differences in consolidated financial statements: share of group and non-controlling interests.

­ Elimination of balances and transactions with a foreign entity.

­ Translation of goodwill.

§ Financial Reporting in Hyperinflationary Economies ­ Criteria considered in assessing whether hyperinflation

exists.

­ Financial statement items subject to adjustments due to hyperinflation.

Part C

§ Financial Instruments: IAS 32 – Presentation, IAS 39 – Recognition and Measurement, IFRS 7 – Disclosure

­ Discussion of the various classes of financial instruments, such as: financial assets and financial liabilities at fair value through profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets and other liabilities.

­ Recognition of gains and losses on the

measurement of each class of financial instruments.

­ Measurement of financial assets and liabilities under the amortized cost method. Calculation of the effective interest rate. Measurement of fixed and variable interest instruments on the date of interest payment.

­ Classification as equity and liabilities. Compound financial instruments – debentures convertible to shares.

­ Rules for recognizing impairment losses under IAS 39. Impairment of assets carried at amortized cost and available-for-sale.

­ Derivative instruments, with emphasis on forwards, futures and options.

­ Measurement and accounting for derivative foreign exchange contracts classified as held-for-trading.

­ Contracts hedging fair value and future cash flows.

Definition and examples of fair value and cash flow hedges. Formal conditions for using hedge accounting. Identifying the hedged item and hedging instrument. Accounting treatment.

­ Embedded derivatives: definition, identification, separation and accounting treatment.

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M

4

Part A

§ Group Statements of Cash Flows

­ Dealing with the various issues that arise on preparation of group statements of cash flows such as investments in associates, dividends paid to non-controlling interests and the acquisition and disposal of subsidiaries during the period.

­ Preparing the consolidated statement of cash lows using the indirect method on the basis of information from the consolidated statement of financial position, statement of comprehensive income and notes to the financial statements.

§ More complex consolidation techniques

­ The impact of piecemeal acquisitions on goodwill calculation.

­ Accounting for disposals of all or part of a subsidiary: calculating the consolidated profit on disposal; accounting for disposals resulting in a reduction of the shareholding, where a controlling interest remains, an associate or investment remains.

­ Consolidation of groups, in which control is exercised indirectly – vertical and mixed groups.

­ Piecemeal acquisition under the revised IAS 27.

­ The issues with acquiring and losing control.

­ Group reorganisations including discussion on transactions between entities under common control

Part B

§ Employee Benefits

­ Jubilee and retirement bonuses.

­ Holiday pay accruals.

­ The operation of pension schemes.

­ Defined benefit and defined contribution pension schemes.

­ Disclosure requirements for employee benefits.

§ Share Based Payment

­ Equity-settled and cash-settled share based payments

­ Definition of the grant date, vesting period and vesting date.

­ Accounting for market and non-market vesting conditions.

­ Impact of modification, cancellation and cancellation with compensation on accounting for equity-settled arrangements.

­ Accounting for equity-settled transactions in situations, when the entity or counterparty have the choice of whether to settle in equity or cash.

Part C

Dates

The courses run from 9 am to 5 pm. Two breaks for

coffee and snacks are scheduled during the day and

at 1 pm participants are invited to lunch (included in

the price). All dates will be confirmed before the

start of the course.

In exceptional circumstances students may

participate in a missed module with another group.

In order to do that, we kindly ask to contact our

client relations officer, at least 7 days before the

course.

Warszawa

no. 28

Warszawa

no. 29

Moduł IA 21 May 22 November 2012

Moduł IB 22 May 23 November 2012

Moduł IC 13 June 8 January 2013

Moduł IIA 14 June 9 January 2013

Moduł IIB 18 September 26 February 2013

Moduł IIC 19 September 27 February 2013

Moduł IIIA 15 October 21 March 2013

Moduł IIIB 16 October 22 March 2013

Moduł IIIC 12 November 22 April 2013

Moduł IVA 13 November 23 April 2013

Moduł IVB 3 December 23 May 2013

Revision 4 December 24 May 2013

Egzamin 17 December 7 June

Wrocław

no. 10

Kraków

no. 10

Poznań

no. 10

Wrocław

no. 11

Moduł IA 7 February 2012 22 March 2012 27 March 2012 15 November 2012

Moduł IB 8 February 2012 23 March 2012 28 March 2012 16 November 2012

Moduł IC 14 March 2012 18 April 2012 26 April 2012 10 January 2013

Moduł IIA 15 March 2012 19 April 2012 27 April 2012 11 January 2013

Moduł IIB 19 April 2012 16 May 2012 30 May 2012 21 February 2013

Moduł IIC 20 April 2012 17 May 2012 31 May 2012 22 February 2013

Moduł IIIA 21 May 2012 19 June 2012 6 September 2012 26 March 2013

Moduł IIIB 22 May 2012 20 June 2012 7 September 2012 27 March 2013

Moduł IIIC 26 June 2012 10 September 2012 10 October 2012 25 April 2013

Moduł IVA 27 June 2012 11 September 2012 11 October 2012 26 April 2013

Moduł IVB 5 September 2012 9 October 2012 7 November 2012 3 June 2013

Revision 6 September 2012 10 October 2012 8 November 2012 4 June 2013

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Application Form

Please complete this form and return by fax to: +48 22 579 8001.

All information concerning the programme will be sent by e-mail to the address indicated. Name and Surname

Job title

Correspondence address (preferably company address) Tel. no:

e-mail:

Address for invoicing incl. NIP

I learned about the programme from

o the press o e-mail o offer sent to the company o website o other source ………

I confirm my participation in

“Application of IFRS”

training programme:

o

full programme

or a part:

o

Module 1

o

Module 2

o

Module 3

o

Module 4

in

o

Kraków

o

Poznań

o

Wrocław

o

Warszawa

Please issue an invoice for the whole programme:

o

YES

o

NO

I would like to order training materials in English at additional cost

o

full programme

o

Module 1

o

Module 2

o

Module 3

o

Module 4

· Na tydzień przed szkoleniem otrzymają Państwo fakturę pro-forma - warunkiem uczestnictwa jest przesłanie faksem kopii płatności. Opłata powinna być dokonana poprzez przekaz bankowy

HSBC Bank Polska, nr rachunku (PLN): 61 1280 0003 0000 0031 1251 3031 Po dokonaniu płatności otrzymają Państwo fakturę VAT.

· Przy odwołaniu zgłoszenia wpłata na poczet uczestnictwa w kursie nie podlega zwrotowi. Możliwe jest zastępstwo zgłoszonego uczestnika

· Uprzejmie informujemy, iż nieobecność na szkoleniu nie stanowi podstawy do zwrotu należności za szkolenie.

· Ernst & Young Academy of Business sp. z o.o. zastrzega sobie prawo do odwołania lub zmiany terminu szkolenia.

· W trybie art. 10 ust. 2 ustawy z dnia 18 lipca 2002 roku o świadczeniu usług drogą elektroniczną (Dz. U. Nr 144 poz. 1204), wyrażam zgodę na otrzymywanie od Ernst & Young Academy of Business sp. z o.o., drogą elektroniczną na wskazany powyżej adres elektroniczny, informacji dotyczących tego szkolenia jak i informacji o innych produktach szkoleniowych. Wyrażam również

zgodę na przetwarzanie moich danych osobowych dla potrzeb niezbędnych do otrzymywania informacji z firmy Ernst & Young Academy of Business sp. z o.o., ul. Armii Ludowej 26, 00-609 Warszawa (zgodnie z Ustawą z 29.08.1997r. o Ochronie Danych Osobowych, Dz. U. 2002 nr 101 poz. 926, ze zm). Równocześnie oświadczam, iż poinformowano mnie o przysługującym mi prawie odwołania udzielonej zgody, co spowoduje niezwłoczne zaprzestanie przesyłania mi informacji handlowych.

... Signature and data