I Cap If Rs Questions

IFRS Seminar
Karachi,
Pakistan

November
2014

BUSINESS
WITH CONFIDENCE
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Tutor biography
Various courses designed and delivered by

Mike Turner
Abu Dhabi Accountability Authority:
- IFRS / IPSAS intermediate to advanced.
Allied Command Operations (ACO) Europe:
- IPSAS intermediate and advanced.
Allied Command Transformation (ACT) United
States:
African Development Bank:
- IPSAS and IFRS intermediate to advanced.
Auditor General of Myanmar:
- IPSAS introduction to intermediate focus on
implementation issues.
Association of Certified Chartered
Accountants:
- IFRS basic to final level exam preparation.
Asian Development Bank:
- IFRS, US GAAP and COSO Internal Control
Program intermediate to advanced and
advanced course banking specific.
BA Aerospace:
- US GAAP intermediate
BPP Professional Education:
- IFRS in house and exam based training
courses.
Chartered Accountants Ireland IFRS:
- Intermediate to advanced and US GAAP
Intermediate to advanced
General Motors Acceptance Corporation
(GMAC):
- US GAAP advanced.
Hewlet Packard:
- US GAAP advanced.
Institute of Chartered Accountants of England
and Wales (ICAEW) :
- IFRS Diploma in IFRS advanced.
ING Bank:
- IFRS advanced.
Institute of Chartered Accounts of Nigeria:
- Train-the-trainer program.
KICPAA ( Cambodian Chartered Accountants):
- IFRS and IPSAS intermediate.
Meteor Telecoms Ireland:
- IFRS advanced update Telecom specific.
Myanmar Institute of Certified Public
Accountants:
- IFRS intermediate to advanced.
NATO School Oberammergau Germany:
River State Government Nigeria:
- IPSAS intermediate.
Securities Exchange Nigeria:
- IFRS intermediate to advanced.
Samba (Saudi Arabia previously Citibank):
- IFRS update course advanced issues.
MIKE TURNER, ACA (UK),

CPA (USA), CFA (USA)
comprehensively cover US GAAP

standards and pronouncements.
Mike is a UK Chartered
Accountant, US Certified
Public Accountant and
Certified Financial Analyst
(CFA) and an expert facilitator
specialising in IFRS, US-GAAP
and IPSAS.
Over the past four years, he has

delivered more than 300 training
days training for ICAEW in
Bangladesh (IFRS), Cambodia
(IFRS & IPSAS), Ghana (IFRS),
Nigeria (IFRS), Myanmar (IFRS &
IPSAS), Philippines (US GAAP,
IFRS and COSO control
framework), Sri Lanka (IFRS), and
Tanzania (IFRS & IPSAS).
He has a long track record of

delivering tailor-made training
solutions around the world with
more than 20 years of
experience spanning the Big 4
accounting firms as well as
private and public entities.
Mike is responsible for the
design and development of
various IFRS, IPSAS and US
GAAP training courses around
the world from fundamental to
advanced stages and has
delivered workshops in most
continents and across a wide
range of cultures.
In addition to delivery of training,

he has developed a 6 week IFRS
training program in IFRS under a
World Bank funded project for
ICAEW for the Nigerian SEC in
2013. Each delegate received 30
days training over a 12 month
period, and Mike personally
developed the materials and
questions for his training
experience.
Mike was the co-founder,

course designer, examiner and
facilitator for the US-GAAP
He will provide a blend of technical

knowledge and practical
experience as he himself offers
such a skill set combination that
will be invaluable to the overall
success of the program.
Diploma for Chartered

Accountants Ireland from 2008
to 2010.
He brings not only unparalleled

technical expertise but also a
He also co-authored a
complete set of training
materials in US GAAP.
Delegates on this programme
were experience qualified
accountants that attended 20
days of training to
unique ability to integrate technical

financial accounting and
management issues into the
training environment through
tailored, real-life exercises that
underscore the practicalities of
achieving agreed-upon learning
objectives.
Institute of Chartered Accountants of

Pakistan IFRS Seminar
Course Contents
1. IFRS 15 Revenue from Contracts with Customers
2. IFRS 13 Fair Value Measurement and Valuation Techniques
3. IAS 36 Impairment
4. IAS 9 Financial Instruments
BUSINESS WITH CONFIDENCE
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IFRS 15 Revenue from Contracts with

Customers
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IFRS 15 Revenue from Contracts with Customers
New revenue recognition standard was issued:

IFRS 15 Revenue from Contracts with
Customers and it should fill the gap between
IFRS and US GAAP.
Youll need to apply IFRS 15 for reporting periods
beginning on or after 1 January 2017 (early
application permitted)
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IFRS 15 will replace the following standards and interpretations:
IAS 18 Revenue,
IAS 11 Construction Contracts
SIC 31 Revenue Barter Transaction Involving Advertising
Services
IFRIC 13 Customer Loyalty Programs
IFRS 15 Agreements for the Construction of Real Estate and
IFRIC 18 Transfer of Assets from Customers
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Objective: single, principle-based revenue standard
Improve accounting for contracts with customers
- More robust framework for recognizing revenue
- Increased comparability across industries & capital
markets
- Better disclosures
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Scope
Excluded
Included
Lease contracts
All other contracts with
customers
Insurance contracts
including unbundled services

from lease & insurance
contracts
Financial instruments
including financial services fees
that are integral part of effective
interest rate
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Core Principle
Core Principle
Recognize revenue to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those
goods or services
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Five-Step Model Framework

Steps to Apply the Core Principle
1. Identify contract(s)
with the customer
2. Identify
performance
obligations
4. Allocate
transaction price
5. Recognize revenue
when performance
obligation is satisfied
3. Determine
transaction price
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Step 1: Identify the Contract(s)

Objective: To identify the bundle of contractual rights and obligations to
which an entity would apply the revenue model
Contract Existencemodel applies if both parties are committed to perform their
obligations and enforce their rights under the contract
Contract combinationscontracts entered into at/near the same time with the
same customer (or related parties) should be combined if one or more of the
following criteria are met
The contracts are negotiated as a package with a single commercial objective
The amount of consideration to be paid in one contract depends on the price or
performance of the other contract
The goods or services promised in the contracts (or some goods or services
promised in the contracts) are a single performance obligation
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Step 1 (contd): Identify the Contract(s)

Objective: To identify the bundle of contractual rights and obligations to
which an entity would apply the revenue model
Contract modifications
Account for as a separate contract if distinct goods or services are
added at their standalone selling price
Otherwise, reevaluate remaining goods or services in the modified
contract
If distinct, account for prospectively
If not distinct, account for using cumulative catch-up adjustment
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Step 2: Identify Performance Obligation(s)

Objective: To identify the promised goods or services that are distinct &
should be accounted for separately
A promise to transfer a good or service (or a bundle of goods or
services) is a performance obligation only if the promised good or
service is distinct
- The customer can benefit from the good or service on its own or
together with other readily available resources
- The entitys promise to transfer goods and services are
separable from other promised goods or services in the contract
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Step 2 (contd): ID Separate P.O.s

Indicators that a good or service is distinct within
context of the contract
Organization does
not provide a
significant service
of integrating the
good or service
into a combined
item
(inputs to produce
an output)
The good or
service does not
significantly
modify or
customize other
promised goods
or services
Purchasing (or not

purchasing) the
good or service
would not
significantly affect
the remainder of
the contract
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Step 3: Determine Transaction Price

Objective: To determine amount of consideration that an entity expects to be
entitled in exchange for promised goods or services
Variable consideration estimate using method the entity expects to
better predict the amount of consideration, either:
Expected value or most likely amount
Time value of money adjust only if there is a significant financing
component
Collectibility revenue should be measured at the amount of consideration
to which the entity is entitled (i.e. an amount that is not adjusted for
customer credit risk)
However, at inception of contract, the expectation of significant credit risk
may indicate the entity is willing to provide a price concession
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Step 3 (contd): Constraint on Revenue

Objective: Recognize revenue at an amount that would not be subject to
significant revenue reversals that might arise from subsequent changes in the
estimate of the amount of variable consideration to which the entity is entitled
Variable consideration: discounts, rebates, refunds, credits, incentives,
bonuses, penalties, contingencies, concessions, etc.
Include in the transaction price the minimum amount of variable
consideration the entity determines would not be subject to a significant
revenue reversal
Indicators provided to assist an entity in making this determination
No circumstances specified for which the minimum amount could be zero
(that is, no exception provided for sales-based royalties and/or other amounts
that are difficult to measure)
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Step 4: Allocate Transaction Price

Objective: To allocate to each separate performance obligation the
amount to which the entity expects to be entitled
Allocate the transaction price to the separate performance obligations using
the relative standalone selling price method
Discounts & contingent consideration should be allocated entirely to one or
more, but not all, performance obligation(s) if
- The entity regularly sells the goods and services associated with the
performance obligation(s) on a standalone basis at a discount; and
- The amount of total discount in the contract equals the amount of discount
at which the goods and services in those p.o.s are sold
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Step 5: Recognize Revenue

Objective: To recognize revenue when (or as) the entity satisfies a
performance obligation by transferring a promised good or service
Performance obligations
satisfied over time
A performance obligation is
satisfied over time if one or more
criteria are met (see accompanying
list)
Revenue is recognized by
measuring progress towards
complete satisfaction of
performance obligation
Identify the appropriate measure of
progress (input or output)
Only recognize revenue if can
reasonably measure progress
Criteria
Customer receives & consumes the
benefits of entitys performance as the
entity performs (e.g. cleaning service)
Entitys performance creates or enhances
an asset that the customer controls as the
asset is created or enhanced (e.g. a home
addition)
Entitys performance does not create an
asset with an alternative use to the entity
and the entity has a right to payment for
performance completed to date & it
expects to fulfill the contract as promised
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Step 5 (contd): Recognize Revenue

Objective: To recognize revenue when (or as) the entity satisfies a
performance obligation by transferring a promised good or service
Performance obligations
satisfied at a point in time
All other performance obligations
are satisfied at a point in time
Revenue is recognized at point in
time when the customer obtains
control of promised asset.
Indicators of control include:
a present right to payment
legal title
physical possession
risks and rewards of
ownership
customer acceptance
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Onerous Performance Obligations

The revenue standard will not include an onerous test
Instead, an entity will apply the onerous tests in existing
IFRS or US GAAP
IFRS
Requirements in IAS 37 for onerous contracts

would apply to all contracts with customers
US
GAAP
Existing guidance for recognition of losses will be

retained, including guidance in Subtopic 605-35 for
losses on construction and production contracts
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Any questions?
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IFRS 13 Fair Value Measurement

and Valuation Techniques
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Key Concept IFRS 13

A fair value measurement assumes that the asset
or liability is exchanged in an orderly transaction
between market participants to sell the asset or
transfer the liability at the measurement date
under current market conditions.
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The Fair Value Hierarchy IFRS 13
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The steps to determine Fair Value under IFRS 13 are

defined below:
Step 1:
Determine Unit of Account
Step 2:
Determine Potential Markets Based on the

Valuation Premise
-Identification of optimal asset group for valuation
Step 3:
Determine Markets for Basis of Valuation

-Selection of optimal asset usage for valuation
Step 4:
Apply the Appropriate Valuation Technique(s) to

determine Fair Value
-Orderly / Not-orderly
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Financial
Financial
Repor7ng

Repor7ng

Determine
Unit of account
Step 1
Financial assets
and liabili;es
Non nancial assets

and liabili;es
Determine highest and best
use (valua7on premise):
Standalone
Or
In combina7on with other
assets/liabili7es
Valua7on Premise:
Standalone
Markets
Consider elec7on to
value based on net
posi7on (group)*
Step 2
Access to any poten7al

market(s)?
Incorporate
perspec7ve
of market
par7cipants
No
Yes
Is there a
principal market
No
Step 3
What is the most

advantageous market
(value all poten7al
markets)
Develop a hypothe7cal
(most likely) market
Yes
Evaluate valua7on technique(s)

Market
approach
Step 4
Allocate fair value to unit of account
Income
approach
Cash
approach
Market
par7cipants
inputs
Fair
Value
Outcome
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Valuation techniques
Maximise the use of relevant observable inputs and minimising the use
of unobservable inputs
Market approach
uses prices and other relevant information

generated by market transactions involving
identical or similar assets, liabilities or a group of
assets and liabilities
Cost approach
reflects the amount that would be required

currently to replace the service capacity of an
asset i.e. current replacement cost
Income approach
converts future amounts (e.g., cash flows or

income and expenses) to a single current amount
reflecting current market expectations about
those future amounts.
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Any questions?
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13

IAS 36 Impairment
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Definition
Impairment loss excess of carrying amount over

recoverable amount
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Key stages in the impairment process

Assess whether
there is an indication
that an asset may be
impaired
STAGE 1
If there is an
indication of
impairment, then
measure the assets
recoverable amount.
STAGE 2
Reduce the assets

carrying amount to
its recoverable
amount
STAGE 3
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Stage 1: Indicators of impairment

There are two sources of impairment indicators:
External Indicators
Internal Indicators
Evidence of obsolescence or
physical damage
Market value has declined

significantly more than expected
Significant adverse changes in

the extent or manner of use of
an asset
Significant adverse changes, in the

technological, market, economic or
legal environment
Evidence of deterioration in
economic performance of an
asset
Increases in market interest rates

during the period
The carrying amount of the net

assets of the reporting entity is
more than its market capitalisation.
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Stage 2: Measuring recoverable amount

Recoverable amount =
Higher of
Fair value less
costs to sell
Value in use
The amount obtainable from sale in an

arms length transaction less disposal
costs
Present value of cash flows

expected from continuing use
and ultimate disposal.
Best evidence is binding sale

agreement
Use bid price (where a spread)
Less costs to sell
Management approved budgets/

forecasts
Discount at pre-tax rate
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Calculating the value in use of the asset
Step 2:
Step 1:
Two steps
involved in
calculating the
value in use of an
asset
Estimate the
future cash
inflows and
outflows that are
expected to arise
in relation to the
asset
Discount the
scheduled cash
flows to arrive at
a present value.
The discount
rate to be used
should be the
risk-free rate of
interest adjusted
to reflect the
risk associated
with the
particular asset
and entity
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Stage 3 - Recognising an impairment loss

If the recoverable amount of an asset is less than its
carrying amount, the asset should be reduced to its
recoverable amount.
The difference is an impairment loss.
Where an item has been revalued - impair by reducing
the revaluation reserve
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Recognition of losses
Assets carried at
historical cost
Revalued
assets
Debit
entry
IAS 16
First use up B/S
then I/S
Expense in I/S
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Cash generating units

Definition
A cash-generating unit is smallest identifiable group of
assets that generates cash inflows that are largely
independent of the cash inflows of other assets or
groups of assets.
The recoverable amount (RA) should be determined on an individual
asset basis as far as possible.
If, however, the individual asset does not generate cash flows largely
independent from other
assets, then the asset is grouped with other assets to form what is
referred to in IAS 36 as a cash-generating unit
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Allocation of impairment loss (CGU)

The impairment loss should be allocated in the following
order:
(a) first, to any goodwill allocated
(b) to other assets pro-rata
Credit
entry
No asset should be reduced below its recoverable amount

(or 0)
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Goodwill
Goodwill will often contribute towards a number of cash-generating units
rather than a single unit.
Goodwill will also be allocated to a group of units for the purpose of

determining carrying amounts.
impairment loss should in the first instance be allocated against the carrying
amount of the goodwill of the group of cash-generating units
If the impairment loss is greater than the carrying amount of the relevant
goodwill, the excess should be allocated to the other non-current assets of
the group of cash-generating units on a pro-rata basis
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After the impairment review

Depreciation/amortisation charge is adjusted to allocate
assets revised depreciable amount over remaining Useful
Life
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Reversals - individual assets
A reversal of an impairment loss is recognised as income

immediately unless the asset is carried at revalued
amount
For a revalued asset any reversal of an impairment loss is

treated as a revaluation increase.
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3 Situations where the recoverable amount

of the asset should be assessed for
impairment annually
Where the entity has intangible assets that have been
identified as having indefinite lives
Where the entity has an intangible asset that is not

yet ready for use
Where goodwill has been recorded as a result of a

business combination
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Any questions?
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IFRS 9 Financial Instruments
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IFRS 9 Financial Instruments
IASB Published the final version of IFRS 9 Financial Instruments in July 2014.
IFRS 9 addresses the so-called own credit issue, whereby banks and others
book gains through profit or loss.
The standard also includes an improved hedge accounting model.
IFRS 9 is now complete!
IASB has an active project on accounting for dynamic risk management.
IFRS 9 is effective for annual periods beginning on or after 1 January 2018.
The standard is available for early application.
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IAS 39
Financial assets
Initial measurement
Subsequent
measurement
Loans & receivables

Fixed or determinable payments
Not quoted in an active market
Held to maturity
Fair value
Amortised cost
Long-term
Fixed maturity
Positive intent & ability
Available for sale
Medium to long-term
Sell as and when
At FV through P/L
Short-term
Held for trading
Include transaction
costs
Fair value with gains
& losses to OCI
Fair value
Exclude transaction
costs
Fair value with gains

& losses to profit or
loss
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Financial Instruments: Expected Credit Losses (July 2014)

Simplified approach that uses an 'expected loss' model
Applies to all financial assets not measured at fair value
through profit or loss (including lease receivables).
Credit losses would be recognised in three stages
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Differences in the FASB/IASB Models

FASB Model
Measurement
approach
IASB Model
A single measurement approach

measure the loss allowance as the
estimate of all contractual cash flows
not expected to be collected
Initial recognition,
deterioration that is
not significant, or
low credit risk
(stage 1)
Loss allowance as the lifetime

expected credit losses
Significant
deterioration in
credit quality (stage
2) or objective
evidence of
impairment (stage 3)
Accounting for
interest revenue on
non-performing
assets
Dual measurement approach-distinguish

between instruments that have not (stage 1)
and have (stage 2) deteriorated significantly
Loss allowance measured as 12-month
expected credit losses
Loss allowance measured as lifetime

expected credit loss
Interest revenue accrual ceases if it is

not probable that entity would receive
substantially all the principle or
substantially all of interest
Interest revenue calculated by applying

effective interest rate to the gross carrying
amount (stages 1 & 2) and to the net carrying
amount (stage 3) of the instruments
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24

Differences in the FASB/IASB Models (cont.)

FASB - Model
IASB - Model
On Day 1, recognize an estimate of full

expected credit loss
On Day 1, recognize an estimate of a

portion of expected credit loss
No threshold, so no need for a significant

deterioration criterion
Remainder of expected credit loss

recognized when threshold reached:
Estimates updated each period
Changes flow through current period provision
Threshold is significant deterioration

(e.g., deteriorates from Investment Grade to
Non- Investment Grade)
Applicable stages and resulting

estimates updated each period
Changes flow through current period provision
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Impairment IAS 39 vs. IFRS 9

IAS 39
IFRS 9
Fair Value to P&L
Not required
Not required
Amortised Cost
Required
Required
Fair Value to OCI
Required
Not required
Recycle losses
No recycling
when impaired
Deemed realized
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Questions?
51
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Institute of Chartered Accountants of Pakistan

IFRS Seminar

Participants Exercises
Fair Value

Participants Exercise 1

Greek Bonds an investment that went south a few years ago, Greece was facing the
possibility of default on their sovereign debt. Prior to their debt restructuring, their bonds
were being purchased by hedge fund and opportunistic investors between 20 to 30% of par
value.
As the German prime minister, Angel Merkel, had made a number of statements that Europe
will stand together and Greece will not default to calm the capital markets, this was a key
consideration in the potential upside of the bonds being repaid at full.
At December 31, prior to the Greek debt restructuring, an entity has a holding of Greek bonds
requiring a valuation.
Required:
Based on general knowledge of the markets (the course tutor may provide more details),
consider and discuss if the Greek bonds would be classified based on the hierarchy in IFRS 13
as level one, two or three, with supporting arguments for the level selected.
Participants+Exercise+2+
An asset can be sold in two markets.

Expected selling price
Market specific transaction costs
Transportation costs to the market

Net amount expected to be received
London
120
20
25

75
Scotland
100
10
10

80

Required:
a) Discuss the fair value of the asset that can be sold in either London or Scotland.

b) Consider if your answer would differ if the product was primarily sold in Scotland.

27


IFRS Seminar
Research-it Inc. acquires a research and development (R&D) project in a business

combination. The entity does not intend to complete the project. If completed, the project
would compete with one of its own projects (to provide the next generation of the entitys
commercialised technology). Instead, the entity intends to hold or lock up the project to
prevent its competitors from obtaining access to the technology.
Required:
Discuss and consider how Research-it Inc. should calculate the fair value of the R&D would be
determined in a business combination and any other issues identified.
Beverage Co acquires land where a factory is located in a business combination. The land is
currently being used to for the factory site. The land is in a central city centre that has highly
appreciated, and a number of nearby sites have been developed for residential high rise
apartments. The fair value of the land as a factory site is $10 million. The fair value of the land
and factory is $20 million. If the factory is demolished, it will have a net cost of $2 million net
of any scrap proceeds. It is not practical to relocate the factory.
The fair value of the land if vacant for residential development is $15 million, excluding
rezoning costs. If the land is developed into apartments, the residual land-value (value of the
land less the development costs is $25 million, and the value of the land if deducting a normal
profit margin for a developer is $17 million (excluding rezoning costs).
In order for the land to be converted to residential land, there would be rezoning and legal
fees of $1 million.
Required:
Discuss and consider how the fair value of the land would be determined and any other issues
identified.

28

IFRS Seminar
Participants Exercises
Impairment of Non Current Assets
!
Deft Touch Inc. produces generators for use in UPS electrical systems. The generators are
manufactured in three production facilities located in Bangalore, Lagos and Johannesburg.
The Bangalore facility produces the component B and then the final generators are
assembled in either the Lagos or Johannesburg facilities in aggregate, the capacities of the
Lagos and Johannesburg facilities are not fully utilized.

Defts products are sold worldwide from either Lagos or Johannesburg.

No restrictions exist for which location can meet an order and is often determined by which
facility has the necessary stock on hand.

Required:

For each of the following cases, what are the cash generating units for Bangalore, Logos and
Johannesburg?
1
There is an active market for Bangalores product.
2
There is no active market for Bangalores product.

( Mike Turner)
!

FMCG Co is a manufacturer and has a number of factories around the globe and units of
operation.

a) The factory in New Mexico produces all shampoos for the US market. There is a dedicated
assembly line for the Dandruff Love Me Not Shampoo.

b) The factory in New York is equipped with solar panels. The factory uses the power.
Consider both scenarios

I.
Under US legislation, all surplus renewable energy generated is required by law to be
purchased by the local utility company.

II.
The solar panels are located in a country where the electric company is not obligated
to purchase surplus power, and it is not legal for an entity to sell power to another
entity except for the national power company.

29


IFRS Seminar
c) In their plant in Africa, they have an independent power plant. Under the laws of the
country, it is not allowed to sell power from independent power plants in the country
where this power plant is domiciled.

d) The corporate offices in Central London have a separate stand-alone building that is a
seven story parking lot. With the significant shortage of parking in central London, FMCG
would have no problem to rent them out on an individual basis.

e) FMCG has recently acquired a major competitor that manufactures detergents. Prior to
the end of the reporting period, FMCG has begun a process of integrating this recent
acquisition with their existing detergent division.

Required:

Discuss and suggest the cash generating unit for each of the above scenarios.

( Mike Turner)
!
Glen Oaks Chemist Ltd. is located in a small industrial town with two main employers. One of
the employers in the shipbuilding industry, has recently significantly reduced its workforce,
this being an impairment indicator under IAS 36. The impairment event occurred on 30 June
20X1. The business in its entirety is considered one cash-generating unit.
After an impairment review, the value in use of the business was estimated at 12,000, and
the net selling prices (after selling costs) are listed below:
Carrying value
As at 30 June 20X1
Net
selling
price
Inventory
5,000
3,000
Delivery vehicle
7,000
5,000
Computers
3,000
2,500
Leasehold improvements
10,000
25,000
10,500
Notes:

1. The selling price of the inventory is how much Mr. Murphy would purchase the
inventory for his chemist in a neighbouring town. If Glen Oaks continue in business,
30

IFRS Seminar
these products would be sold to retail customers at 6,000, and the selling costs are
approximately 2,000.

2. If the assets are sold, the leasehold improvements would have a value of nil and it is
unlikely that a buyer of the business can be found to purchase it as a going concern.

Required:

a) Calculate the amount that the assets of Glen Oaks Chemist ltd should be recorded in
the statement of position at 30 June 20X1 if the value in use was $11,000.

b) Calculate the amount that the assets of Glen Oaks Chemist ltd should be recorded in
the statement of position at 30 June 20X1.

( Mike Turner)

31


IFRS Seminar
32

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IFRS Seminar

Various courses designed and delivered by

MIKE TURNER, ACA (UK),

comprehensively cover US GAAP

Over the past four years, he has

He has a long track record of

In addition to delivery of training,

Mike was the co-founder,

He will provide a blend of technical

Diploma for Chartered

He brings not only unparalleled

unique ability to integrate technical

Institute of Chartered Accountants of

BUSINESS WITH CONFIDENCE

IFRS 15 Revenue from Contracts with

BUSINESS WITH CONFIDENCE

Institute of Chartered Accountants of

IFRS 15 Revenue from Contracts with Customers

New revenue recognition standard was issued:

BUSINESS WITH CONFIDENCE

IFRS 15 Revenue from Contracts with Customers

BUSINESS WITH CONFIDENCE

Institute of Chartered Accountants of

IFRS 15 Revenue from Contracts with Customers

BUSINESS WITH CONFIDENCE

including unbundled services

BUSINESS WITH CONFIDENCE

Institute of Chartered Accountants of

BUSINESS WITH CONFIDENCE

Five-Step Model Framework

BUSINESS WITH CONFIDENCE

Institute of Chartered Accountants of

Step 1: Identify the Contract(s)

Step 1 (contd): Identify the Contract(s)

BUSINESS WITH CONFIDENCE

Institute of Chartered Accountants of

Step 2: Identify Performance Obligation(s)

BUSINESS WITH CONFIDENCE

Step 2 (contd): ID Separate P.O.s

BUSINESS WITH CONFIDENCE

Purchasing (or not

Institute of Chartered Accountants of

Step 3: Determine Transaction Price

Step 3 (contd): Constraint on Revenue

Institute of Chartered Accountants of

Step 4: Allocate Transaction Price

BUSINESS WITH CONFIDENCE

Step 5: Recognize Revenue

BUSINESS WITH CONFIDENCE

Institute of Chartered Accountants of

Step 5 (contd): Recognize Revenue

Onerous Performance Obligations

Requirements in IAS 37 for onerous contracts

Existing guidance for recognition of losses will be

BUSINESS WITH CONFIDENCE

Institute of Chartered Accountants of

BUSINESS WITH CONFIDENCE

IFRS 13 Fair Value Measurement

BUSINESS WITH CONFIDENCE

Institute of Chartered Accountants of

Key Concept IFRS 13

BUSINESS WITH CONFIDENCE

The Fair Value Hierarchy IFRS 13