By the end of this event the participant should:
Understand the impact of COVID-19 on effective standards (IFRS 9, IFRS 15 and IFRS 16)
Understand IFRS 9 Financial Instruments (excluding de-recognition and hedging);
Understand IFRS 15 Revenue from Contracts with Customers;
Understand IFRS 16 Leases; and
Get an overview of IFRS 17 Insurance Contracts, and the Conceptual Framework.
The webinar will cover the following topics:
IFRS 15 - Introduction: How COVID 19 impacts revenue recognition.
IFRS 15 - The 5 step approach to achieve clarity.
Step 1 – Identify the contract with the customer:
Importance of the contract.
Criteria for a valid contract for revenue recognition.
Treatment of money received in advance.
Step 2 – Identify performance obligations in the contract:
The starting point – promises in the contract.
Distinct goods and services in the contract.
Illustrative examples of determining whether goods and services are distinct.
Step 3 – Determine the Transaction Price:
What is the transaction price?
Is it different from current standards?
How to account for variable consideration.
How to identify a financing component in the transaction price.
Step 4 – Allocation of the transaction price to the performance obligations:
Understanding the basis of the allocation.
Step 5 – When & how should revenue be recognised?
Understanding the notion of control.
Testing whether goods and services should be recognized over a period of time.
How to measure progress over a period of time.
Indicators of control being transferred at a point in time.
IFRS 15: Disclosure of Revenue.
The importance of relevance and materiality.
Disaggregation of the contracts.
IFRS 9 Financial Instruments:
Classification of assets and liabilities:
Classification criteria for amortised cost and fair value through OCI.
Decision tree for classification of financial assets.
Initial and measurement.
Fair value adjustments.
Expected credit losses (ECLs):
General approach vs simplified approach.
Significant increase in credit risk.
Measurement of ECLs.
IFRS 16 Leases:
Identifying a lease.
Recognition of lease for lessee accounting.