International Accounting Standards Board (IASB) has notified new accounting standards IFRS 15 - Revenue from contracts with customers and IFRS 16 - Leases, mandatorily applicable from 1 January 2018 and 1 January 2019, respectively. Corresponding standards have also been issued under US GAAP. These standards represent culmination of years of research and deliberation among IASB and FASB. IFRS 15 will apply to most revenue arrangements, including Construction contracts. Among other things, it changes the criteria for determining whether revenue is recognized at a point in time or over time and provides more guidance in areas where current IFRSs are lacking including multiple element arrangements, variable pricing, rights of return, warranties and licensing. The actual impact on each company’s top line will depend on the industry, specific customer contracts and how they have applied existing standards. IFRS 16 represents the first overhaul of lease accounting for over three decades. The IASB has long considered the existing split between operating and finance leases as problematic as it has resulted in too much structuring and off-balance sheet financing. Therefore, IFRS 16 has done away with the operating versus finance lease distinction and requires accounting for all leases to be ‘on-balance sheet’ for lessees.
After successful completion of this course, candidates should be able to:
Understand the difference between old revenue standard IAS 18 and IAS 11 with IFRS 15;
Understand the difference between old lease standard IAS 17 with IFRS 16;
Understand the impact of these new accounting standards on financial statements and identify implementation challenges.
Who should attend?
Chief Financial Officers (CFOs), finance directors and strategic planners;Accountants, analysts and auditors;
Investment bankers and corporate bankers;
Private equity and merger and acquisition specialists;
Consultants, practicing Chartered Accountants, Company Secretaries and Cost Accountants;
Graduates who are part of finance/accounting teams.
Topics we will cover:
IFRS 15 - Revenue from contract with customers: Transition
from IAS 18 and IAS 11 to IFRS 15/ 5 Step model to recognize revenue in any
contract/Impact of IFRS 15 on different industries/Difference between IFRS 15,
ASC 606 and IAS 18 & IAS 11;
IFRS 16 – Leases: Transition from IAS 17/New definition
of Lease/Lessee’s Accounting under new guidance of IFRS 16/Impact of IFRS 16 on
different industries like Telecom, Manufacturing, Automobile, Oli and Gas etc./Lessor’s
accounting/Sale and Lease back transactions/Difference between IFRS 16, ASC 842
and IAS 17;
Challenges faced by corporates in implementation of IFRS;
Upon completion of the training, the participants will be awarded with a certificate by Baker Tilly Academy.