Accounting and Comparison of IFRS and GAAP

Introduction

This program provides in-depth coverage of the new IFRS and US GAAP lease accounting standards. In January 2016 the International Accounting Standards Board (IASB) published IFRS 16, which supersedes IAS 17 (and related Interpretations) for periods beginning on or after 1 January 2019. The US Financial Accounting Standards Board (FASB) published Topic 842, its own new leasing standard, in February 2016: public business entities must apply the new provisions for fiscal years beginning after December 15, 2018.

Leasing has proved an important and flexible source of financing for many years. Existing accounting rules produce different results, depending on whether a lease is classified as finance (US GAAP uses the term ‘capital’) or an operating lease. Lessees currently account for operating leases off-balance sheet and merely disclose the commitment to pay future rentals as a note to the financial statements. Listed companies using IFRS or US GAAP are estimated to have around $3.3 trillion of lease commitments, 85% of which do not appear on the balance sheet. Under the respective IFRS and US GAAP Conceptual Frameworks, all leases produce assets and liabilities that meet the criteria for balance sheet recognition but accounting by lessees for operating leases has been exempted from this treatment. Users often try to estimate the impact of the off-balance sheet lease obligations, with limited accuracy. This course provides a comprehensive comparison and review of critical technical differences between IFRSs and US GAAP. Our specialist instructors use real-world examples and model financial statements to explain and illustrate these critical accounting differences. Course delegates are also brought up-to-date on the progress and timetable for implementation of joint IASB-FASB projects. In addition, participants are provided with information to assist them in researching accounting issues and monitoring future changes.

Among the questions addressed in this course are:

• What are the critical differences between US GAAP and IFRSs?
• Which are the most common differences that significantly affect the financial statements?
• What are the prospects for international convergence of accounting standards?
• How may current accounting issues be researched and future changes monitored?

Objectives

• Minimize the learning curve for getting up to speed on US GAAP or IFRS by capitalizing on existing knowledge
• Appreciate the major technical differences between US GAAP and IFRS requirements
• Evaluate the significant impact of these differences through the use of real-world and model financial statements
• Plan ahead for the implementation of new joint IASB –FASB standards
• Identify how to research current accounting rules and likely future changes in requirements
• Evaluate the prospects and timetable for global accounting convergence

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This course is designed for those who wish to learn about the critical technical differences between US GAAP and IFRS. It is also intended to prepare accountants for upcoming changes in IFRS and US GAAP. The course is designed for executive officers, industry controllers, accountants, auditors, and finance professionals who wish to solidify their knowledge of the critical technical differences between US GAAP and IFRS.

Course Outline

• IFRS / US GAAP Differences
  • Conceptual Framework
  • Presentation and Disclosures
• Presentation of financial statements
• Statements of cash flows
• Accounting policies, changes in accounting estimates, and errors
• Events after the reporting period
• Interim financial reporting
• Discontinued operations
• Earnings per share
  • Assets
• Inventories
• Property, plant, and equipment
• Borrowing costs
• Intangible assets
• Investment property
• Impairment of assets
• Non-current assets held for sale
  • Liabilities
• Employee benefits, including pensions
• Provisions and contingencies
• Leases
  • Financial Instruments
• Financial assets
• Financial liabilities
• Derivatives and hedging
  • Revenue Recognition
  • Business Combinations, Consolidations, Associates and Joint Arrangements
• Business combinations
• Consolidations
• Investments in associates and joint ventures
• Joint arrangements
• Update on new IFRSs for 2018 and 2019 and differences from US GAAP equivalents
  • IFRS 9 Financial Instruments
  • IFRS 15 Revenue from Contracts with Customers
  • IFRS 16 Leases
• IASB Work Plan