IFRS First-Time Adoption - Exemptions and Options

Learning Objectives

• To be acquainted with the latest information regarding the First-Time adoption of IFRS
• To familiarize with the procedures for transitioning to IFRS and establishing initial policies
• To build the initial IFRS Balance Sheet
• To add and remove assets and liabilities as per Standard requirements
• To reevaluate assets and liabilities to conform to IFRS
• To prepare the GAAP-IFRS transitional statement
• To write the appropriate Notes
• To identify the unique disclosure and presentation requirements of IFRS #1

Course Description

IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements. The IFRS grants limited exemptions from the general requirement to comply with each IFRS effective at the end of its first IFRS reporting period. When reporting under IFRS, U.S. Publicly Accountable Enterprises (PAE’s), including U.S. publicly traded companies, must publish their first comparative financial statements (including quarterly statements) based on International Financial Reporting Standards (IFRS). They will need to implement the new standards well in advance of that date using IFRS Standard # 1.

IFRS Standard # 1 was specifically issued to help companies with the transition from GAAP. In addition, a reconciling financial statement which bridges the gap between the two will be required. In fact, IFRS requires that the PAE’s be able explain the differences between IFRS and GAAP.

This webinar will outline the step-by-step procedure for implementation and examine the many factors that companies need to carefully consider when implementing International Financial Reporting Standards.

MAJOR TOPICS COVERED:

• Scope and applicability of Standard #1
• Sizing up the impacts of implementation: questions you need to ask
• Planning the approach: accounting policies and decision criteria
• Mixed asset valuation model: revaluation and historical cost
• Setting up the opening IFRS balance sheet
• Exceptions allowed by Standard #1
• GAAP/IFRS reconciliation requirement
• Transitional provisions
• Disclosure requirements
• Financial statement presentation
• Practical examples to help develop and understanding of the process and requirements of switching over to IFRS from GAAP.

Overview

• Publicly Accountable Enterprises (PAE's)

  9 mins
• First time adoption

  22 mins
• Asset/Liability recognition

  32 mins
• Reclassification

  44 mins
• Deemed cost of PPE and Investment property choices

  58 mins
• Mandatory: No Option

  70 mins
• Impairment Example

  84 mins