IFRS Certification Course Complete Guide: Basics to Advanced

Learn the basics of IFRS, the purpose of IFRS 1 as the first-time adoption standard, its requirements and exemptions, and how IFRS provides a global, comparable framework for financial statements.

Explore first-time adoption of IFRS 1, including exemptions from full compliance, transition timing after July 2009, and retrospective application in the opening IFRS statement of financial position and comparatives.

Explore the objective of IFRS: ensure first and interim statements present high-quality, transparent, comparable information. Identify IFRS as the starting point for accounting, balancing minimal cost with maximum user benefits.

Explore the scope of IFRS, including when to apply IFRS 1 for first-time adopters, and learn why an explicit unreserved statement of compliance is required in initial IFRS financial statements.

Explore when IFRS first-time adoption applies, using company B's 2011 local GAAP and IFRS statements distributed to external users.

Explore the IFRS timeline for first-time adopters, applying retrospective IFRS from transition date, opening statements, and mandatory and optional exemptions to transition from local GAAP.

Explore how first-time IFRS adopters recognize and reclassify assets and liabilities from previous GAAP, measure them under IFRS, and when retrospective application is not required.

Explore IFRS exemptions and exceptions, including optional retrospective exemptions under IFRS 1 and the recognition, measurement, and de-recognition rules across IAS 39, IAS 32, IAS 19, and IFRS 36.

Outline IFRS disclosure requirements for first-time adopters, including opening statements, reconciliations of equity and total comprehensive income, supplementary explanations, and interim reporting considerations under IFRS 34.

Explore IFRS interim reporting requirements, including equity reconciliations at the transition date, end of prior-year periods, and total comprehensive income adjustments from previous GAAP to IFRS.

Explore IFRS comparative information requirements, including at least one year and the transition date, with restatement for more than one year, and first-time adopter fair value and deemed cost disclosures.

Review the IFRS 1 transition timeline, retrospective requirements, recognition of assets and liabilities, reclassification, exemptions, and the opening IFRS statement of financial position for the first IFRS statements.

Explore how new IFRS standards affect a first-time adopter, detailing opening IFRS as of 1 january 2011 and 2012 financial position, comprehensive income, changes in equity, cash flow, and notes.

Explore asset purchases misclassified as business combinations, restating them as asset purchases and removing goodwill from IFRS, while recognizing impairment measured with discounted cash flows at transition.

At transition date, IFRS requires recognizing a derivative asset of €100 and lowering the hedge item from €1,000 to €920 for fair value hedges, with €80 recognized in retained earnings.

Apply IFRS to recognize decommissioning costs at the date of transition, discount to present value, include in asset cost, recognize the corresponding decommissioning liability, and adjust opening net assets.

Explore IFRS 2, covering share-based payment with equity- and cash-settled awards, modifications, settlements, taxes, disclosures, transition from local GAAP, and the grand date model for fair value.

Explore the scope of IFRS 2, covering three transaction types: equity-settled, cash-settled (liability awards), and share-based payment with cash alternative.

Identify what IFRS 2 does not cover, including share based payment transactions with shareholders, goods or services settled outside the group, and assets transfers in certain group restructuring arrangements.

Explore the basic principles of IFRS 2, distinguishing equity-settled and cash-settled share-based payments, determining grant date fair value, vesting conditions, and subsequent recognition and measurement.

Define grant date in IFRS 2 as the mutual understanding and legally enforceable arrangement that triggers fair value measurement, and assess board approval, pre-grant services, and vesting conditions.

Identify vesting conditions under IFRS 2 determining whether services entitle a share-based payment award. Distinguish service and performance conditions, market or non market targets linked to EBITDA or share price.

Clarifies the distinction between vesting and non vesting conditions under IFRS two, explains service requirements, and illustrates with a flowchart and examples like non-compete clauses.

Explore how vesting and non-vesting conditions, including market and non-market performance, affect IFRS 2 share-based payment accounting, with fair value estimation at grant date and adjustments for expected vesting.

Explore how changes in estimates affect share-based payment expense under IFRS, including revised employee departures, option vesting, and adjustments for market conditions, fair value, service condition, and non-compete conditions.

Understand how vesting period, exercise window, and option life affect expense recognition for share-based awards. Consider graded vesting, multiple vesting periods, and impact of forfeiture on fair value and timing.

The standard IFRS 2 requires estimating fair value for share-based awards using option pricing models, typically Black-Scholes or binomial, supplemented by Monte Carlo simulations for market conditions, with six inputs.

Understand cash settled awards under IFRS 2 by valuing the liability at fair value. Reflect changes in profit or loss and adjust for vesting and market conditions at each report.

Analyze modification, cancellation, and settlement of share-based awards, including vesting condition changes, cost recognition, and the distinction between forfeiture and cancellation.

Explain share based payment awards with a cash alternative, including compound awards split into liability and equity components, and decide cash or equity settlement by obligation and past practice.

Explain how mandatory or voluntary replacement of acquired share-based payment awards affects consideration, goodwill, and remuneration expenses under IFRS 3, including vesting and noncontrolling interest implications.

Understand group share based payment plans under IFRS two, detailing equity settled and cash settled arrangements across parent and subsidiaries, and the role of employee benefit trusts under IFRS ten.

Explore how taxes affect share-based payment award under IAS 12, including country-specific IFRS 2 tax implications, deductions based on vesting or exercise fair value, and deferred tax consequences or revenue.

Disclose the type and scope of arrangements under IFRS 2, including vesting conditions, exercise prices, and the impact on the income statement and related party disclosures.

Examine IFRS 2 treatment of share-based awards with multiple vesting periods and graded vesting patterns. Analyze non-market and market vesting conditions, grant dates, and cash-settled awards using practical examples.

Explore the transition to IFRS, including IFRS one and IFRS two for equity and cash settled awards, with disclosures on outstanding awards and vesting conditions.

summarizes IFRS 2 principles for share-based payments, distinguishing equity-settled and cash-settled transactions, scope exclusions, recognition and measurement, grant date fair value, vesting and performance conditions, and required disclosures.

Apply the acquisition method under IFRS 3 to identify the acquirer, set acquisition date, recognize assets, liabilities, and non-controlling interest, and measure goodwill or gain from bargain purchase with disclosures.

Explore the scope of IFRS 3 for business combinations, including exclusions like asset acquisitions and common control, and outline the seven-step process from acquisition date to goodwill and subsequent measurement.

Identify the acquirer, determine the acquisition date, and recognize assets, liabilities, non-controlling interest, and goodwill or bargain purchase gain under the acquisition method, using IFRS 10 and IFRS 3 guidance.

Identify the acquisition date by considering when control of the acquiree is obtained, whether before or after closing, and key factors such as unconditional offers and board changes.

Recognize and measure identifiable assets acquired and liabilities assumed at acquisition-date fair value, with non-controlling interest and goodwill recognized separately; exceptions apply for contingent liabilities, income taxes, and share-based payments.

Goodwill equals consideration transferred plus non-controlling interest plus the fair value of previously held equity, minus net identifiable assets; negative results indicate bargain purchase, recognized after asset and liability review.

Explore how IFRS 3 permits a transaction-by-transaction choice to measure noncontrolling interest at either fair value or the acquiree's proportionate net assets, with other NCI components measured at acquisition.

Explore goodwill calculation under IFRS 3 for a 70% acquisition, comparing NCI at fair value (185) versus net assets (100) and the resulting goodwill of 385 or 300.

Learn how a business combination in stages under IFRS 3 remeasures a previously held stake at fair value, determines goodwill, and revalues the acquiree's assets and liabilities.

Adjust provisional amounts in the measurement period to reflect newly identified assets and liabilities at acquisition within one year, and determine if related transactions are separate from the business combination.

determine contingent consideration at fair value at the acquisition date and adjust post-acquisition changes depending on whether it is equity, asset, or liability.

Recognize acquisition cost as cost of issuing debt or equity instruments under IFRS 32/39 and IFRS 9, expensing costs and accounting for relationships and reacquired rights, including gains or losses.

Contingent liabilities in a business combination are measured at the higher of the recognized amount or the amount less accumulated amortization. Evaluate whether arrangements with employees or shareholders are part of the combination and allocate share-based payments.

Explore indemnification assets: recognize at acquisition under exemptions to recognition and measurement, then measure like indemnified liabilities, with IFRS 3 guidance on dual listed, stapled arrangements, and reverse acquisitions.

Explore IFRS disclosures for business combinations, including acquirer details, acquisition date, percentage of voting rights, consideration, goodwill, contingent liabilities, provisional amounts, and related reconciliations.

Explain acquisition disclosures for a business combination, detailing control of DC, goodwill 3500 from economies of scale and synergies, and fair-value assets, liabilities, and noncontrolling interest.

Explore how IFRS 3 defines business combinations, identifies control per IFRS 10, and measures assets, liabilities, and non-controlling interest at acquisition date.

evaluate business combinations through integrated assets and input-process-output, including 100% stake acquisitions. examine development-stage entities, noting no output yet, but potential returns and goodwill from premium payments.

Assess when acquiring investment properties qualifies as a business combination versus an asset purchase by comparing integrated activities, employees, and revenue generation in single-tenant and multi-tenant scenarios.

Explore how acquiring a shell company differs from a business combination under IFRS, with emphasis on control via board power and the no goodwill treatment when treated as a subsidiary.

Analyze whether a repurchase by company X and a potential voting rights option create a business combination and control, considering ownership shifts from 40% to 57% and premium effects.

Explore a reorganization where X gains control of Y and Z via share issuance, and a spin-off where Z's investors acquire X and Y at arm's length under common control.

Explore IFRS 3 in common-control acquisition where A forms C to acquire B, creating majority and non-controlling interests. Examine operating leases, favourable lease terms, and license settlements in business combinations.

Analyze how pre-existing license and supply agreements affect business combinations under IFRS: determine settlement losses, reacquired rights, and their impact on consideration transferred and goodwill.

Introduce IFRS four insurance contracts, outlining scope, recognition and measurement, liability adequacy, impairment, and disclosures, and explain phase one completion in 2004, phase two toward 2016 with 2020 effective date.

Identify insurance contracts by four elements: significant insurance risk, an uncertain future event, compensation to the policyholder, and adverse effect on property or business.

Explore the objectives and scope of IFRS 4 for insurance contracts, outlining limited accounting improvements and disclosures of amounts, timing, and uncertainty of cash flows for insurers and reinsurance contracts.

Explore embedded derivatives in hybrid securities and their separation from host contracts under IFRS 9. Learn how fair value measurement affects P&L and the insurance contract exceptions and surrender options.

Explore the IFRS 4 unbundling scenario for insurance contracts with deposit components and embedded surrender options. Identify when unbundling is compulsory or permitted and how policy governs deposit obligations.

Identify when to unbundle deposit components, determine recognition of rights and obligations, and apply IFRS exemptions for insurers, including liability adequacy tests, non-offset rules, and reinsurance asset considerations.

Explore how insurers adjust accounting policies for insurance contracts under IFRS, balancing relevance and reliability, with focus on current market interest rates, designated liabilities, and shadow accounting.

Apply IFRS 3 to insurer business combinations by measuring at acquisition the fair value of insurance liabilities and assets, with an expanded presentation separating a policy liability and intangible asset.

Examine discretionary participation features in insurance contracts, including liability or equity classification, revenue recognition of premiums, and liability adequacy testing under IFRS and is 39.

Disclose under IFRS four information identifying and explaining amounts from insurance contracts, including the accounting policy, assets, liabilities, income, expenses, and risks, with sensitivity analyses where applicable.

Revise IFRS 4 by identifying what counts as insurance contracts, listing examples and exclusions, applying the liability adequacy test, and outlining required disclosures.

Explore IFRS 5, covering non-current assets held for sale and discontinued operations, including objectives, scope, classification, measurement, and disclosures. Learn how these events affect results and net assets for investors.

IFRS 5 classifies non-current assets as held for sale when recovery is through a sale, and defines disposal groups as assets with related liabilities to be sold in one transaction.

Under IFRS 5, classify assets as held for sale only if they are available for immediate sale and the sale is highly probable, considering a firm commitment and active marketing.

Understand how management commitment and shareholder approval influence held-for-sale classification, and apply active marketing, fair value pricing, and the one-year completion rule under IFRS.

Explain how to allocate assets and liabilities to a disposal group under IFRS five, including goodwill held for sale and liabilities to be transferred in a single transaction.

Identify how to allocate disposal group assets and liabilities for deferred tax purposes under IFRS, comparing inside and outside basis differences and two practical approaches.

Explore IFRS held for sale, including subsequent reviews, extensions beyond one year for delays due to conditions on transfer, firm purchase commitments, or events beyond the entity's control.

Discover how IFRS five defines a discontinued operation, including held-for-sale classification, separate presentation in the statement of comprehensive income, and required earnings per share disclosures.

Explain how IFRS five measures disposal groups or assets held for sale, using the lower of carrying amount and fair value less cost of sale, with group-level and exception rules.

Learn how to measure assets held for sale under IFRS 5, applying classification and the lower of carrying amount and fair value less cost to sell, with IAS 36 considerations.

Recognize impairment losses when fair value less cost to sell drops below carrying amount for assets held for sale, with first to goodwill allocated and losses charged to the P&L.

Identify reversal of previous impairment losses only for non goodwill assets within IFRS 5 measurement scope when fair value less cost to sale exceeds carrying amount, excluding goodwill.

Analyze measurement implications when held-for-sale classification is removed, including prospective reclassification, remeasurement within IFRS 5 scope, and recoverable amount using value in use or fair value less cost to sale.

Explore how to disclose disposal transactions, including discontinued operations and notes, and measure disposal groups at fair value less costs to sell, plus assets held for sale.

Explain how IFRS 5 requires disclosure of discontinued operations and disposal groups, including balance sheet presentation, notes, and multiple methods for presenting results in the comprehensive income statement.

Explain IFRS 5 disclosure requirements for assets held for sale and disposal groups, including separate presentation, current asset/liability classification, OCI impacts, and outside profit or loss gains or losses.

Understand how IFRS five and IS1 require a single post-tax line for discontinued operations, detailing pre-tax results, taxes, remeasurement gains/losses, and disposals.

Explore IFRS 5 essentials, including cash generating units, held for sale, and discontinued operations, with measurement at the lower of carrying amount and fair value less cost to sell.

Clarify IFRS 6 scope for exploration and evaluation expenditures, including pre-license costs and post-evaluation development, and when costs may be capitalized under related IFRS guidance.

Explore how IFRS 6 governs exploration and evaluation expenditures, allowing capitalization under exemptions from IAS 8 and IAS 12, and how transfer to development assets affects impairment and recognition.

Under IFRS six, entities choose to capitalize or expense exploration and evaluation expenditures, with options to capitalize none, some, or all, including rights acquisition and drilling within an exploration area.

Understand when to change the entity's accounting policy for expenditures under IFRS six, including temporary exemptions from is eight, and how such changes affect asset definitions, reliability, and relevance.

Classify expenditures as tangible or intangible based on the asset's nature under IFRS 6 paragraph 15, applying the policy consistently and noting that exploratory drilling illustrates enhancing knowledge costs.

Classify cash flows by capitalization—investing when capitalized, operating when expensed—then choose cost or revaluation model, with depreciation starting when assets are ready for use.

Learn how IFRS 6 guides impairment tests for exploration and evaluation assets, with triggers like expiring rights, non recoverable expenditures, and recoverable amount considerations, for CGU allocation under IAS 8.

Assess impairment triggers under IFRS 6 by treating the area of interest as the unit of account, and consider capitalization of E&E costs and PPE reversals.

Review IFRS 6 disclosure requirements for exploration and evaluation assets, including accounting policies, significant judgments, farm-in arrangements, and derecognition and proceeds treatment.

Examine the accounting treatment under IFRS six and IFRS eight when selling 25% of E and E asset, recording proceeds, carrying value adjustments, and profit on disposal or other income.

Cover IFRS 6 essentials: initial recognition of exploration and evaluation assets at cost, eligible expenditures, post-recognition cost or revaluation, impairment indicators, and disclosures per IAS 16 and IAS 38.

Learn IFRS 7 disclosures for financial instruments, covering significance, risk, qualitative and quantitative requirements, fair value, income statement, transfers, hedge accounting, and sensitivity analysis.

Explore IFRS 7's objective to disclose how financial instruments affect an entity's position and performance, the risks they pose, how management handles them, and the scope and exclusions.

Explore IFRS 7 balance sheet disclosures for financial instruments, including carrying amounts, fair values, reclassifications, and notes, with held-for-trading and designated at fair value through profit or loss.

Explore the IFRS 7 disclosure requirements for fair value of financial instruments, including fair value through profit or loss, credit risk changes, and collateral disclosures for loans, receivables, and hybrids.

Disclose the fair value of collateral received and use terms under IFRS 7 para 15. Explain default disclosures, including carrying amounts and whether breaches were remedied before issuing financial statements.

Examine how IFRS 7 expands income statement disclosures beyond IAS 32, detailing category net gains or losses, interest income and expense, and items appear on the income statement or in notes.

Explore how to disclose accounting policies and significant judgments under IFRS, including IFRS 7 guidance for financial instruments, fair value designations, impairment, and the need for detailed policy disclosures.

Understand hedge accounting disclosures under IFRS 7, including hedge risk description, hedging instrument fair value, and gains or losses in equity and P&L for cash flow and net investment hedges.

Explain IFRS 7 disclosures for fair value, detailing quoted prices or valuation techniques, key assumptions, changes in profit or loss, and the use of market observable and non-observable inputs.

Dive into IFRS seven qualitative and quantitative risk disclosures. Understand the risk management process, policies, hedging, and monitoring that illuminate a fund’s exposure and governance.

Explore IFRS 7 credit risk disclosures, detailing maximum credit exposure before collateral or enhancements, with qualitative and quantitative information on loans, deposits, derivatives, and guarantees.

Determine the maximum credit exposure under IFRS seven, valuing loans and fixed income at carrying amount net of impairment, derivatives at current fair value, and guarantees at the repayable maximum.

Understand IFRS 7 disclosures on credit quality for financial assets, including past due or impaired assets, counterparty defaults and internal or external credit ratings, credit exposure, collateral, and age analyses.

Outlines disclosure of collateral held as security under IFRS 7, and analyzes liquidity risk with contractual and expected maturities, derivatives, guarantees, and management measures.

Summarizes IFRS 7 market risk disclosures with sensitivity analysis or value-at-risk, covering interest rate, currency, and commodity risks, hedging effects, and method details.

Analyze IFRS 7 scope, exceptions, fair value hierarchy, and disclosures for financial instruments, including transfer of assets. Learn how liquidity, credit, and market risk are assessed and reported.

Explore IFRS eight segment reporting, detailing scope, operating and reportable segments, products and services, geographical areas, and major customers, with aggregation methods, thresholds, and internal management report-based disclosures.

Define the scope of IFRS eight for separate and consolidated financial statements and identify an operating segment as a component reviewed by the chief operating decision maker.

Identify the chief operating decision maker and their business activities, determine if information is regularly reviewed and discrete financial information is available to identify operating segments.

Identify their business activity explains that an operating segment may be pre-operating or a corporate function capable of earning revenue, per IFRS 8, including outputs transferred to other segments.

Explore how joint ventures and associates may form operating segments under IFRS 8, and review IFRS 5 disclosures for discontinued operations held for sale.

Identify whether information is regularly reviewed by CODM to define operating segments under IFRS 8, using factors like segment managers, product lines, geographic areas, and discrete financial information.

IFRS 8 allows aggregating operating segments into one reportable segment when they share similar characteristics like products and services, production processes, customer class, and distribution, evaluated by margins and measures.

Identify reportable segments under IFRS 8 using 10% thresholds for revenue, profit, and assets, including internal sales. If 75% external revenue isn't met, combine similar non-threshold segments to reach it.

Identify reportable segments under IFRS 8 and use the management's preferred measure, including depreciation in profit before tax, with totals reconciled to IFRS amounts and comparability considerations vs IAS 14.

Understand IFRS eight disclosure requirements for reportable segments, including general information, product and service types, measures of profit, assets, and liabilities, with reconciliations and entity-wide disclosures.

Explains how IFRS 8 requires identifying and aggregating operating segments, using steps 1–8 to define reportable segments like retail, catering, manufacturing, and publishing, with notes on inter-segment pricing.

Disclose segment liabilities under IFRS 8 when provided to Codm, present segment profit, assets, and liabilities, and explain eliminations, aggregation, and reconciliation to consolidated results.

Identify operating segments under IFRS 8 in a matrix organization by product lines and regions. Assess aggregation criteria and margin trends to determine segment reporting for wholesale and retail stores.

Explore how IFRS 8 restates prior year segment information with retrospective application, including an exemption for excessive cost, and how ongoing management-based segmentation affects comparative disclosures.

Explore how IFRS 8 handles restatement of segment information when reportable segments change, including prior-period disclosures on old and new bases and practicable restatement of items.

Review the core principle of IFRS 8 and its scope for annual and interim statements, including 10% thresholds for revenue, profit or loss, assets, and the 75% revenue rule.

Aggregate similar operating segments by product, production process, customers, distribution, and regulatory environment; define operating segments and CODM, require disclosures, reconciliations, and 10% revenue thresholds for major customers.

Explore IFRS 9 for financial instruments, including its objective and scope, classification of financial assets and liabilities, and the core areas of classification, measurement, impairment, and hedge accounting.

Explore the objectives, phases, and scope of the international financial reporting standards nine, including classification and measurement, expected credit loss impairment, and enhanced hedge accounting for financial instruments.

Classifies financial assets into three categories—FVTPL, FVOCI, and amortized cost—based on the business model test and the cash flow characteristics test.

Explain IFRS 9's business model test and cash flow characteristics test, detailing hold to collect and hold to collect and sell, and asset classification under amortized cost, FVOCI, or FVTPL.

Explain the hold to collect business model, which realizes cash flows by collecting contractual payments, using past sales frequency, value, timing, and credit risk to judge future cash flows.

Explore the hold to collect and sell business model under IFRS, clarifying criteria to collect contractual cash flows and sell assets, and how liquidity needs and yield matching drive classification.

Determine if contractual cash flows pass the SPPI test for IFRS 9 classification, considering initial fair value, time value of money, credit risk, and potential for prepayment.

Assess the solely payments of principal and interest test by examining contractual terms, including non-recourse and contractually linked instruments (tranches) in securitization, and look through to underlying cash flows.

Explain IFRS 9 asset classifications with a flowchart: hold to collect, hold to collect and sell, or neither, guiding amortized cost, FVOCI, or FVTPL and impairment outcomes.

Explore impairment of financial assets under IFRS 9, comparing fair value through profit or loss with amortized cost using present value of expected cash flows.

Learn how IFRS 9 classifies and measures financial liabilities, using amortized cost or FVTPL, including held-for-trading, designation at FVTPL, and embedded derivatives.

Explain how changes in fair value attributable to own credit risk are presented in comprehensive income (OCI) under IFRS 9, with exceptions for accounting mismatches and derecognition rules.

Explore hedge accounting for diesel price hedges under IFRS 9, applying it to pricing components within a contract and understanding its advantages over the older standard.

Explore IFRS 9 hedge accounting for options, forwards, and foreign currency derivatives, contrasting time value and forward elements with IAS 39. Distinguish transaction-based versus time-period-based hedges and OCI deferral.

Explore the three hedge types under IFRS 9—cash flow, fair value, and net investment hedges—and apply their treatments, including the cash flow hedge reserve and OCI versus profit or loss effects.

Review IFRS 9 concepts from classification and measurement models to impairment, de-recognition, and hedge accounting, including amortized cost and fair value through other comprehensive income and through profit or loss.