International Financial Reporting Standards

1. Introduction to IFRS/IAS (2.5 hours):

• fundamental concepts for financial reporting (Conceptual framework),
• formats of financial statements,
• minimum requirements for the content of the profit or loss statement, statement of financial position (balance sheet), statement of changes in equity, notes (IAS 1). Comparison with the requirements of the Accounting Act,
• corrections of errors, changes in the accounting principles, changes in accounting estimates (IAS 8),
• events after the reporting period (IAS 10).

2. Cash flow statement (1.5 hours):

• methods of calculating cash flow: direct and indirect (IAS 7,
• classification of economic transactions into operating, investing and financing activities,
• cash and non-cash transactions: recognition in the statement,
• additional information to the cash flow statement,
• selected cash flows from operating, investing and financing activities (practical examples).

Property, plant and equipment (PP&E) (4 hours):

• classification of PP&E (including spare parts, components) (IAS 16),
• key differences regarding the classification of PP&E items in the Polish accounting standards and in the IAS,
• initial recognition in the accounting books (purchase price, production cost), including dismantling and installation costs,
• recognition of subsequent costs (modernisation and repairing),
• determining economic useful life, the principles and methods of depreciation,
• measurement after initial recognition: cost model and revaluation model,
• accounting of non-current assets held for sale and discontinued operations, including documentation requirements (IFRS 5),
• borrowing costs (definition and accounting treatment, qualifying assets, capitalisation period, capitalisation rate, general and specific financing, capitalization of exchange differences arising from foreign currency borrowings) (IAS 23),
• accounting for government grants (IAS 20).

1. Intangible assets (2.5 hours):

• definition, recognition of intangible assets, including those with indefinite useful life (IAS 38),
• basic issues related to research and development, accounting treatment, capitalisation criteria,
• determining useful lives, the principles and methods of depreciation,
• accounting for software development costs.

2. Inventories (1.5 hours):

• key definitions used in IAS 2,
• initial recognition, including purchase price, production costs, conversion costs,
• costs excluded from the cost of inventories and recognised as expenses in the period in which they are incurred,
• measurement of inventories, recognition as an expense (write-down),
• accounting of unused production capacity, inventories purchased on deferred settlement terms,
• cost formulas (FIFO, LIFO, weighted average cost),
• recognition in the financial statements, presentation of exchange rate differences and write-downs of inventories in the profit or loss account.

Leasing (4 hours): 

1. Introduction to IFRS 16.
2. Scope of the standard and exceptions from application.
3. Identification of lease arrangements (including embedded leasing):

• definition of leasing in IFRS 16,
• practical examples of using the definition,
• separation of leasing and other components of a contact.

4. Accounting for leasing by the lessee – model based on the right of use:

• initial recognition and subsequent measurement of the rights of use and the lease liability,
• recognition of lease payments (fixed, variable, in-substance fixed), the impact of changes in lease payments on the measurement of assets and liabilities,
• determining the lease term, contracts for an indefinite period,
• possible approaches to determining the discount rate,
• practical examples of the application of IFRS 16 requirements (calculation of assets and liabilities values).

5. Accounting for lease modifications.
6. Recognitions in the lessor’s financial statements:

• classification of leases (operating vs finance),
• accounting for subleasing and leaseback transactions.

7. Disclosures in the financial statements.

Business combinations and goodwill (4 hours): 

• identifying a business combination type,
• control issues,
• combination of entities or businesses under common control,
• business combination vs. acquisition of assets, concentration test,
• cost of business combination,
• attributing the cost of business combination to the assets acquired and liabilities and contingent liabilities assumed (purchase price allocation),
• intangible assets identified in business combinations,
• goodwill and gain on bargain purchase.

Consolidation (4 hours): 

• principles for the presentation and preparation of consolidated financial statement,
• definition of control in accordance with IFRS 10,
• joint control and significant influence,
• accounting for investments in subsidiaries, joint ventures and associates in consolidated and separate statements (IAS 28),
• full consolidation method (example),
• equity method (example),
• basic adjustments and consolidation exclusions.

1. Impairment of assets (2.5 hours): 

• internal and external evidence of impairment, the principles of recognising impairment loss,
• recoverable amount of assets: fair value and value in use,
• identification of cash-generating units,
• recognising and measuring an impairment loss, allocation to cash-generating units,
• impairment tests – value in use in accordance with IAS 36,
• reversing an impairment loss.

2. Provisions, liabilities and contingent assets (1.5 hours): 

• criteria for classifying provisions and liabilities, the need for recognition (legal obligation, constructive obligation, reliable estimate, the probability of an outflow of resources embodying economic benefits) (IAS 37),
• specific types of provisions: for unlawful environmental damage, repairs, onerous contracts, costs of PP&E dismantling, restructuring costs (examples),
• accrued expenses and provisions for liabilities,
• reliable estimation and presentation of provisions for the initial recognition (discounting),
• adjustments of estimates in subsequent periods,
• contingent assets and liabilities: recognition, subsequent measurement, presentation.

Revenue and receivables (4 hours): 

• the 5-step revenue recognition model (IFRS 15),
• revenue recognition criteria, including transferring the benefits and risks,
• determining the amount of revenue (discounts, rebates, etc.),
• recognition of revenue from various types of contracts,
• revenue recognition for multiple element arrangements, including those comprising components of the sale of goods and the provision of services,
• fair value measurement – discussion of the need to discount future cash flows in the case of income receipt in the future, accounting for revenue in the subsequent periods after discounting,
• loyalty programs and promotional sales,
• barter transactions.

Financial instruments (4 hours):

• classification of financial instruments: financial assets and liabilities,
• initial recognition and subsequent measurement of financial instruments,
• fair value vs. amortised cost,
• recognition of expected credit losses,
• derivatives and embedded derivatives,
• hedge accounting,
• fair value measurement,
• disclosures of financial instruments in the financial statements.

Deferred tax (4 hours):

• balance sheet law and tax law – creating a deferred tax (IAS 12),
• the tax base and carrying amount of assets and liabilities, calculation of temporary differences (examples of the most common differences),
• deferred tax assets and deferred tax liabilities, identification of taxable and deductible temporary differences,
• basic exceptions to the creation of deferred tax (e.g., in the case of PP&E),
• deferred tax assets arising from unused tax losses and unused tax credits,
• assessment of the recoverability of deferred tax assets,
• the average effective tax rate analysis,
• examples of disclosures in the financial statements.

Financial statement disclosures (4 hours): 

• Financial Instruments: Disclosures (IFRS 7),
• Fair Value Measurement (IFRS 13),
• Operating Segments (IFRS 8),
• Related Party Disclosures (IAS 24).

1. Share-based payments (3 hours): 

• scope of the standard and exemptions (IFRS 2),
• share-based and cash-settled payments: classification and accounting,
• the effects of vesting and non-vesting conditions on the measurement of share-based payments,
• expenses recognition,
• share-based payments in a group of companies,
• disclosure requirements.

2. Employee benefits (1 hour): 

• forms of employee benefits – during and after the employment period (e.g., jubilee awards, retirement benefits) (IAS 19),"provisions" for unused entitlement on leaving,
• defined contribution plans and defined benefit plans: recognition of actuarial profit and lossses  in the financial statements,
• past service cost.