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IFRS Update 2020

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Learning objectives  

  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. 

 

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 Content 

  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. 

    • Contract modifications. 

  • 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. 

  • Presentation. 

  • Disclosure: 

    • Disaggregation of the contracts. 

    • Significant judgements. 

• IFRS 9 Financial Instruments: 

  • Recognition. 

  • Classification of assets and liabilities: 

    • Classification criteria for amortised cost and fair value through OCI. 

    • Decision tree for classification of financial assets. 

  • Measurement: 

    • Initial and measurement. 

    • Transaction costs. 

    • Fair value adjustments. 

  • Expected credit losses (ECLs): 

    • General approach vs simplified approach. 

    • Significant increase in credit risk. 

    • Measurement of ECLs. 

  • Derivative accounting. 

• IFRS 16 Leases: 

  • Identifying a lease. 

  • Recognition of lease for lessee accounting. 

  • Lease modifications. 

  • Lessor accounting.