IFRS - A Complete Course on IFRS

Introduce IFRS 18, a new presentation standard that restructures the profit and loss into operating, investing, financing, income tax, and discontinued operations, while enhancing disclosures and management defined performance measures.

IFRS 18 reclassifies the profit and loss into operating, investing, financing, income tax, and discontinued operations. It emphasizes main business activity, asset classification, and new subtotals like operating profit.

Learn how IFRS 18 determines main business activities to classify income and expenses into operating, investing, and financing, including when finance income becomes operating and investments stay in investing.

Learn how IFRS classifies income and expenses into operating, investing, and financing categories, distinguishing operating from non-operating assets and considering a business activity, with examples like revenue, depreciation, and rent.

Aggregate and disaggregate line items to present clear, meaningful primary financial statements, with consistent labeling, sensible subtotals, and notes that avoid obscuring material information.

Define management defined performance measures (MPM) under IFRS 18, learn how they are disclosed as subtotals of income and expenses, and distinguish them from APM and other subtotals.

IFRS 19 lowers disclosure requirements for eligible subsidiaries without public accountability, while applying full IFRS recognition and measurement; adoption is voluntary with an effective date of January 1, 2027.

Explore IFRS 15's five-step revenue recognition model, including performance obligations, and how transfer of control—through payment rights, title, possession, or risks and rewards—drives revenue from contracts with customers.

Identify how the five step model under IFRS 15 guides recognition and measurement of revenue, including contract identification, performance obligations, transaction price allocation, and timing of revenue recognition.

Identify the contract under IFRS 15, including approval and commercial substance. Identify performance obligations and distinct goods or services, and note contract forms (written, verbal, implied) and modifications.

Determine the transaction price under IFRS 15, including variable consideration, financing components, refunds, non-cash consideration, and consideration payable to customers. Explore methods to estimate variable consideration and recognize related revenue.

Explore the five-step model under IFRS 15, focusing on significant financing components, present value calculations, discount rates, time value of money, and distinguishing revenue from finance income.

Explore the five-step IFRS 15 model for determining the transaction price, including non-cash consideration, fair value, and issues like discounts, rebates, and consideration payable to customers.

Learn how to allocate the transaction price across performance obligations under IFRS 15's five steps model, including handling discounts and aligning with standalone selling prices.

Clarify IFRS 15's five-step model for recognizing revenue, from identifying contracts and performance obligations to recognizing revenue on transfer of control, using point-in-time and over-time methods.

Explain IFRS 15 variable consideration with return rights, including revenue net of expected returns, refund liability, and right-to-return assets.

Explore how IFRS 15 handles a significant financing component by recognizing revenue at present value, measuring finance income, and unwinding the receivable over time.

Allocate discounts between bundled performance obligations under IFRS 15 by proportionally splitting standalone prices and recognizing service revenue over time, illustrated with a car plus warranty example.

Apply IFRS 15 to assess performance obligations, identify the Elementary package contracts, evaluate Inventory X with bundled hardware and hosting, and perform collectability assessment at 80% of 3 million.

Explore IFRS 15 costs to fulfill a contract, which may be recognized as an asset and amortized over the contract life, with impairment checks and a practical expedient.

Explore IFRS 15 contract assets, revenue recognition using the output method, and related entries for completed work versus invoiced amounts, including contract asset versus receivable concepts.

Analyze revenue recognition for a three-year time-based contract with a significant financing component, calculating present value, discounts, and unwinding finance income under IFRS.

Examine IFRS 15 revenue recognition for a printing machine contract, including fixed and variable consideration, performance obligations, contract modification, and adjusting events.

Explain significant financing component under IFRS 15 when a customer pays in advance, using five percent to measure financing cost and adjust contract liability and revenue.

Explore IAS 16 recognition and initial measurement of tangible property, plant and equipment, including cost, depreciation, capital versus revenue expenditure, and related topics.

Explore IAS 16 subsequent measurement, deciding whether expenditures are material, capitalizable or expensed, and learn asset life estimates, residual values, depreciation methods, and IFRS policy choices by asset class.

Explore IAS 16's cost model and revaluation model for property, plant, and equipment, detailing initial and subsequent measurements, depreciation, impairment, and how fair value drives gains in OCI and equity.

This lecture covers revaluation of non-current assets when fair value rises, comparing cost and fair value models, and recording revaluation gains and surplus with depreciation reversals.

Explain IAS 16's cost and revaluation models for PPE and IAS 40's investment property, focusing on depreciation, impairment, and fair value changes in OCI or P&L.

Explore IAS 38 on intangible assets, including recognition criteria, cost and revaluation models, differentiation from goodwill, and the treatment of research vs development and internally generated assets.

Explain initial and subsequent measurement of tangible non-current assets under IAS 16, including separating components for depreciation, and apply related provisions, borrowing costs, and investment property considerations.

Explain accounting for mixed-use property under IAS 16 and IAS 40, including cost allocation to PPE and investment property, depreciation, fair value measurement, and impairment for indefinite-lived intangibles (IAS 38).

Understand investment property: land or building held to earn rentals or capital appreciation, not owner-occupied. Recognition is at cost, with fair value concepts aligned to investment property and ppe standards.

Learn IFRS IAS 40 investment property measurement: initial cost including direct expenditures and borrowing costs for self-constructed assets, with subsequent cost model or fair value model and profit or loss.

Define fair value as the price in an orderly, informed market. Differentiate it from value in use and discuss investment property under IFRS 13 and IFRS 16.

Compare cost and revaluation (fair value) models for PPE and investment property, and explain when changing models improves accuracy while applying the chosen model consistently within each asset class.

Explore the definition of intangible assets as identifiable non-monetary assets without physical substance, with separability or contractual rights, and examine examples like software, licenses, and patents.

Recognize an intangible asset only if it is identifiable and non-monetary, and meets the criteria of probable future benefits and measurable cost; measure at cost and present separately from goodwill.

This lecture explains two sources of intangible assets—acquired and internally generated—covering separately acquired assets, assets obtained via business combinations, recognition criteria (identifiable, non-monetary), and goodwill concepts.

Explore how IFRS 38 treats internally generated intangible assets, distinguishing research from development. Learn the six criteria to capitalize development costs.

Explore IFRS measurement of intangible assets: initial cost for separately acquired, business combination fair value, and internally generated assets, plus subsequent cost or revaluation models.

Apply the revaluation model to tangible and intangible assets, recording increases in OCI as revaluation surplus and decreases through P&L, with possible transfers to retained earnings.

Explore impairment of assets by calculating the recoverable amount—the higher of value in use and fair value less cost to sell—and writing down carrying amounts, including cash generating units.

Explore impairment calculations by comparing carrying value with the recoverable amount, based on fair value less cost of disposal and value in use, using active markets and future cash flows.

Identify impairment indicators—external or internal—and, if present, perform impairment review by estimating cash flows, discounting, and determining recoverable amount via value in use and fair value less cost of disposal.

Identify a cash generating unit as the group generating cash flows, determine its recoverable amount by value in use, and allocate impairment from goodwill pro rata to building and equipment.

Explore impairment and its reversal under IFRS, calculate carrying amount, recoverable amount, and new depreciation after impairment, and determine the maximum permissible reversal.

Allocate impairment to a cash generating unit by first reducing goodwill, then proportionally reducing PPE and intangible assets based on recoverable amounts, never touching current assets or reversing goodwill impairment.

Identify impairment at asset or CGU level; if historic cost, recognize in profit or loss, if revalued, charge first to OCI by reducing the revaluation surplus, then to P&L.

Explore impairment of cash generating units and goodwill under IFRS, showing step-by-step allocation from CGUs to head office and unallocated goodwill, with practical examples and notional goodwill concepts.

Explore impairment and reversals under IFRS 5 for disposal groups held for sale, measuring at fair value less costs to sell; assess deferred tax effects on return on capital employed.

Explain impairment under IAS 36, recoverable amount as higher of value in use or fair value less costs to sell, and borrowing costs capitalization under IAS 23 for constructed assets.

Explore how IFRS capitalizes borrowing costs for qualifying assets during construction, using specific or weighted average rates. Learn when capitalization starts, suspends, or ceases and when it ends.

Calculate net interest by subtracting interest income from interest expense during construction, and capitalize the net amount while recognizing the net interest in the income statement, per IFRS.

explains accounting for a machine under IAS 16 and IAS 23, including initial cost, installation, safety certificate, depreciation start, complex asset components, and borrowing cost capitalization for a qualifying asset.

Recognize a provision for onerous contracts when unavoidable costs exceed benefits, using the lower of fulfillment costs and penalties, and ignore future operating losses as liabilities.

Explain when to recognize a restructuring provision under IAS 37 by evaluating a detailed formal plan and constructive obligations, including scope changes, delivery changes, and changes in management structure.

Discuss restructuring plans under IFRS. First plan with identified closures and communicated redundancies creates a 14 million provision (retraining excluded); second plan lacks obligation, so no provision is recognized.

Explain IFRS treatment of environmental provisions and restoration costs for a quarry: initial recognition, discounting to present value, capitalization of restoration, and operating cost provisions with unwinding.

Discover the difference between reserves and provisions: reserves are discretionary funds, like retained earnings, not tied to obligations; provisions are obligations against uncertain liabilities.

Explain how IAS 16 and IAS 37 govern construction of a power plant, recognizing environmental provisions, discounting to present value, unwinding interest, and impact on depreciation and financial statements.