Mastering International Financial Reporting Standards (IFRS)

Explore how IFRS 2 recognizes share-based payments, whether equity settled or cash settled, across all entities, and the key disclosures required for these transactions.

Explore IFRS 13 valuation techniques - market, income, and cost approaches - emphasizing observable inputs within the three-level fair value hierarchy and the disclosure of level one to three inputs.

Explain equity and cash settled share-based payment transactions under IFRS 2, covering recognition, fair value at grant date, receipt date, vesting, and periodic remeasurement.

Learn how IFRS 2 requires disclosures in notes for share-based payment arrangements, including terms, settlement, vesting, weighted average exercise prices, and details on outstanding options and their remaining life.

Use Excel examples to assess subsidiary status under IFRS, examining control, voting rights, and non-controlling interests; learn disclosed ownership, NCIs, and summarized joint venture information.

Document share based payments clearly, adopt one or two standard forms, and apply them consistently to all such arrangements.

Explore IFRS three and IFRS ten to understand how a business combination is identified and measured, including assets and liabilities recognition, goodwill or a bargain purchase, and non-controlling interests.

Explore IFRS 3's acquisition method for recognizing assets, liabilities, and goodwill in business combinations, determine when consolidation applies, and identify non controlling interest and bargain purchase gains.

Explore IFRS 3’s definition of a business—inputs, processes, outputs—and the acquisition method’s four steps: identify acquirer, determine acquisition date, recognize assets, liabilities, non-controlling interests, and goodwill or bargain purchase gain.

Identify the acquirer and acquisition date. Recognize assets and liabilities at fair value with necessary adjustments, including non-controlling interest and separable intangibles.

Identify noncontrolling interests on the consolidated balance sheet and apply full or partial goodwill methods to calculate NCI, using either the subsidiary fair value or the net identifiable assets.

Determine the acquisition date as the settlement date (October 31, 2022) and calculate the acquisition price from stock values at announcement (June 1, 2022) versus settlement, using 2 million shares.

Explain goodwill and bargain purchase gains under the acquisition method, showing how to compute goodwill from fair value and net assets, including examples and impairment notes.

Explore step acquisitions, fair value remeasurement on gaining control, and how gains or losses flow to the income statement; compare normal and reverse acquisitions under IFRS 3.

Explore the fundamentals of IFRS 4 insurance contracts, including initial and subsequent recognition and measurement, portfolio grouping, policy changes, presentation, and disclosures, with notes on IFRS 17 replacement.

Identify an insurance contract as an agreement where the insurer takes on significant risk from the policyholder and compensates for a specified uncertain future event, unlike self-insurance.

Assess whether significant insurance risk exists by evaluating magnitude of effect and probability of occurrence. If significant, apply IFRS four insurance contracts; otherwise classify as financial or service contracts.

Identify common insurance contracts under IFRS 4, grouping similar risks into a portfolio. Divide into onerous, not onerous, and remaining contracts, with profitability-based subgroups, and keep the composition fixed.

Determine earliest recognition date as first premium due date, coverage start, or onerous status; measure using fulfillment cash flows, contractual service margin, risk adjustment, and discount to present value.

Explore the subsequent measurement of insurance contracts, including remaining coverage liability, fulfillment cash flows, and contractual service margin, plus derecognition on modification or extinction and adjustments to coverage units.

Explore IFRS disclosures for insurance contracts, including balance sheet effects, credit and liquidity risk, yield curves, and portfolio clustering to understand reporting outcomes and future cash flows.

Explore IFRS 5 concepts, focusing on non-current assets held for sale and discontinued operations. Learn objectives, classification and measurement, conditions to classify, disclosures, presentation of discontinued operations, and related exceptions.

IFRS 5 defines assets held for sale and disposal groups, explains their presentation and disclosures of discontinued operations, and requires immediate availability and a highly probable sale.

Learn how to classify assets as held for sale under IFRS 5 by assessing active marketing, fair value reasonableness, committed sale plans, buyer search, and expected completion within a year.

Understand held for sale classification under IFRS, including distinctions between abandoned assets and discontinued operations, and explore duration extension and related conditions with Excel illustrations.

Classify assets as held for sale or distribution under IFRS 5; apply post-classification measurement and impairment rules, including no depreciation after classification; disclose late classification in the subsequent events note.

Master IFRS 5 disclosures for held-for-sale assets and disposal groups, including classification changes, description, gains or losses, and the prohibition of retroactive classification for discontinued operations.

Present discontinued operations under IFRS 5 with a single post-tax amount on the income statement. Show held-for-sale assets separately on a gross basis and disclose related cash flows and notes.

Explore IFRS 6, outlining accounting for exploration and evaluation of mineral resources, capitalization and impairment tests, stripping costs, and disclosures for mining assets.

Learn IFRS six definitions of mineral resources, including technical feasibility and commercial viability, and how exploration and evaluation expenditures are capitalized and disclosed in financial statements.

The lecture explains impairment when carrying value exceeds recoverable value, with indicators including expired exploration rights and nonviable areas, and outlines stripping costs accounting options: fixed asset, inventory, or expense.

Classify evaluation and exploration assets as tangible or intangible, present exploration expenditures gross on the balance sheet, and disclose accounting policies and mineral resources information under IFRS 6.

Apply units of production depreciation to mineral assets in mining, calculate depreciation rate from expected production and cost, then apply to actual extraction.

Learn IFRS revaluation with an Excel example: gains go to other comprehensive income, losses to income statement, with reversals affecting OCI for land, mineral assets, and buildings.

Understand the IFRS revaluation model through Excel examples, detailing how initial and subsequent gains or losses transfer to income statement or OCI, including reversals for mineral assets.

Explore IFRS 7's guidance on financial instruments disclosures, including its replacement of IAS 30, emphasis on face of financial statements, and coverage of objectives, risks, and qualitative and quantitative disclosures.

Identify the significance of financial instruments and the nature and extent of risks under IFRS 7. Learn about materiality, disclosures in notes and financial statements, and basic risk management concepts.

Examine IFRS other disclosures covering accounting policies, fair value through profit and loss, hedge accounting, and the nature of risk disclosures for credit, liquidity, and market risk.

Examine how IFRS notes disclose credit risk, including expected credit loss rates, loss allowances, and past-due receivables, and show liquidity and market risk through maturity analyses and interest rate exposure.

Explore IFRS 7 qualitative and quantitative disclosures, detailing risk types, methods to measure risk, management policies, exposure changes, and sensitivity analyses for credit, liquidity, and market risk.

Explore IFRS 8 operating segments and how publicly traded companies disclose segment information. Understand the scope, objectives, and disclosures required for segment reporting.

IFRS eight aims to clarify performance, prospects, and future net cash flows, and to help users make informed judgments about the entity; it covers public entities’ separate and consolidated statements.

An operating segment is a component of a public entity with business activities and discrete financial information, whose results are reviewed by the codm to allocate resources.

identify reportable segments under IFRS eight by matching economic characteristics across products, production, customers, distribution, and regulatory environments, then apply revenue, profit or loss, and asset thresholds for disclosure.

Explore IFRS eight comparative segment reporting, restating prior periods for newly reportable segments and separating current reportable segments from all other segments, illustrated with an Excel example and disclosures.

Outline the four IFRS eight segment reporting disclosures: general information, assets and liabilities and profit or loss, reconciliation, and entity-wide disclosures; emphasize presenting the same figures to external users.

Present reconciliations of consolidated assets, liabilities, revenues, and profit or loss to segment totals, noting adjusting items; provide entity-wide disclosures on products, major customers, and geographic areas per IFRS 8.

Apply the IFRS eight size test and 10% revenue, profit, and assets thresholds to identify reportable segments, then perform the 75% reporting sufficiency test to determine disclosures.

Identify reportable segments using the size test and the 75% revenue sufficiency threshold under IFRS 8. Add other segments up to ten if needed and disclose them in financial statements.

Explore the consolidation model under IFRS 10, including parent and subsidiary relationships, and the requirements for presenting consolidated financial statements. Examine exceptions, consolidation accounting steps, and separate financial statements information.

Identify control through majority voting rights and relevant activities to establish a parent-subsidiary relationship; apply consolidation, equity, or fair value methods and disclose non-controlling interest.

Explore when to consolidate subsidiaries under IFRS by assessing power and control, and learn the three key consolidation exceptions for parent companies.

Explore IFRS 11 on joint arrangements, distinguishing joint ventures and joint operations, and learn how to classify, account for rights and obligations, and present related financial statements.

Explore the IFRS investment types—subsidiaries with full consolidation, associates using the equity method, and joint arrangements (joint venture or joint operation)—focusing on IFRS 11.

Explore how IFRS 11 defines a joint arrangement as parties sharing control under a contract. Determine whether it is a joint venture or joint operation via collective and unanimous consent.

Learn to classify joint arrangements under IFRS 11 as joint operations or joint ventures, considering separate vehicles and whether rights attach to assets and liabilities or to net assets.

Identify joint arrangement type; apply the equity method per IAS 28 for joint ventures (20–50% influence) and account for joint operations with IAS 16 for assets, liabilities, revenue, and expenses.

Master joint arrangements under IFRS 11 by recognizing and presenting assets, liabilities, revenues, and expenses for joint operations, and applying the equity method for joint ventures, with example disclosures.