SGV PFRS Training Solutions 2015-2016
A member firm of Ernst & Young Global Limited
About SGV PFRS Training Solutions SGV Philippine Financial Reporting Standards (PFRS) Training Solutions are developed by utilizing the real life experience and insights our people gain from engaging in a wide range of business activities. This hands–on knowledge is transferred in the classroom, where through a combination of lecture sessions, discussions, group exercises and case studies, we put theory to practice. Our aim is not only to provide participants with a holistic perspective of PFRS, but more importantly, to empower them with the ability to practically apply their knowledge in their work environment. Our instructors are professionals with many years of practical PFRS experience in a multitude of industries. We do not only conduct numerous “open” courses on a variety of PFRS topics for a diverse audience; we also regularly undertake customized “in-house” training engagements for our clients. To find out more, talk to us about your training needs.
Introduction The year 2005 saw the biggest change in the Philippines’ financial reporting framework. This was the year when we shifted from the former Philippine Generally Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS), which were renamed as Philippine Financial Reporting Standards (PFRS).
Maintaining this convergence at all times is critical for our companies (both public and private) as they strive to retain their competitive edge and remain at par with their international counterparts. It is also critical for our local stock market, as it enhances the comparability of our listed companies’ financial statements with those of companies around the world.
The changes did not stop after the 2005 adoption. Over the past ten years, there have been continuous changes, revisions, amendments and enhancements to IFRS. The Philippines has kept up with the changes and as a result, our financial reporting framework is still converged with IFRS, except for the deferral of IFRIC 15, Agreements for the Construction of Real Estate.
The constant changes in the financial reporting landscape could lead to a gap between the current knowledge and skills of our people and the requirements of the market to implement these changes effectively. A way to bridge this gap is to ensure that our people are always updated and well-trained, in order for them to meet these challenges head on.
The convergence effort continues as we are faced with the prospect of adopting the new IFRS 15, Revenue from Contracts with Customers – the standard that will supersede virtually all revenue recognition requirements in IFRS – in 2017, and the completed version of IFRS 9, Financial Instruments, in 2018. We are also expecting major changes in the future with the finalization of the amendments on IFRS for Small and Medium-sized Entities (SMEs) and International Accounting Standards (IAS) 17, Leases, and the new standard on Insurance Contracts, which will replace IFRS 4.
We in SGV are committed to providing quality training courses. Throughout the years, we have been constantly offering various PFRS training courses to local business communities, clients and regulators, and we will continue to do so. We are delighted to share with you our training curriculum for 1 June 2015 to 31 May 2016. We look forward to seeing you in these training courses, and collaborating with you in coming up with a more customized training curriculum to meet your specific needs.
Josephine Adrienne A. Abarca Partner Head, Accounting Standards Group
2
3
41
Contents 1. PFRS: Changes in 2015 and Beyond
6
2. Introduction to the New Revenue Recognition Standard
8
3. Financial Instruments
10
28
8. PFRS Series
30
8.1
Accounting for Property, Plant and Equipment and Investment Properties
31
3.1
Accounting for Financial Instruments
11
8.2
Accounting for Income Taxes
31
3.2
Derivatives and Hedge Accounting
12
8.3
Group Accounts: PFRS 10, 11 and 12
32
3.3
Introduction to Accounting for Financial Instruments under IFRS 9
8.4 14
Philippine Accounting Standards (PAS) 19, Employee Benefits (Revised)
33
3.4
Implementing the New IFRS 9 Expected Credit Loss Model for Banks
8.5
Impairment of Assets
33
8.6
A Workshop on the Preparation of the Statement of Cash Flows
34
8.7
A Workshop on Segment Reporting
35
8.8
Related Party Transactions and Disclosures
35
8.9
A Workshop on the Preparation of Interim Financial Statements
36
4. PFRS 13, Fair Value Measurement
4i
7. Accounting for Non-accountants
15 19
4.1
An Intensive Training on PFRS 13
20
4.2
PFRS 13, Fair Value Measurement, for Banks
22
5. Key Aspects of Consolidation
23
6. PFRS for Small and Medium-Sized Entities (SMEs)
26
PFRS on Demand
37
Schedule of Trainings
38
39 5
1
PFRS: Changes in 2015 and Beyond Financial markets demand consistency in accounting practices. The implementation of IFRS, locally adopted as PFRS, is key to increasing the transparency and comparability of financial information and further enhancing the efficiency of capital markets. Because the standards are principles-based, they require a deep knowledge of the underlying concepts, as well as the application of professional judgment.
Outline Outline
New and amended standards effective for 31 December 2015 year-end New and amended standards effective subsequent to 31 December 2015 year-end Updates on major IFRS projects Clarification of issues and answers to frequently asked questions Tax implications of the new and amended standards effective for 31 December 2015 year-end ► Other topics with financial reporting implications, such as latest issuances from the Securities and Exchange Commission (SEC) ► ► ► ► ►
336 66
Who should attend
This two-day seminar will help participants understand key developments in PFRS and will focus on the implications of these changes. It will help participants put new and revised PFRS accounting principles into practice and determine their impact on PFRS financial statements.
IFRS 15, Revenue from Contracts with Customers, the standard that will replace virtually all revenue recognition requirements in IFRS; the provisions of the final version of IFRS 9, Financial Instruments; the recently issued Annual Improvements and Exposure Drafts; and their impact will be discussed and analyzed through practical examples. Answers to frequently asked questions on selected standards will also be covered during this training course. Moreover, the seminar will cover the possible tax implications of these changes as well as relevant issuances of the SEC.
Chief accountants, accounting managers, financial controllers and finance directors who are responsible for preparing and analyzing financial statements under PFRS Those who would like to gain a more in-depth understanding of changes to PFRS
7
2
Introduction to the New Revenue Recognition Standard This half-day seminar provides an overview of the provisions of IFRS 15, particularly the five-step revenue recognition model. It also highlights the differences between IFRS 15 and the current revenue standards as well as the challenges and potential issues upon its adoption .
On 28 May 2014, the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board issued their joint revenue recognition standard, IFRS 15 and ASC 606, respectively, which replaces existing IFRS and US GAAP requirements for revenue recognition. This standard applies to all revenue contracts and also provides a model for the recognition and measurement of sales of some non-financial assets (e.g., disposals of property, plant and equipment).
Outline ► Background of the revised revenue recognition project ► An overview of the provisions of IFRS 15 ► Scope ► The five-step model ► Contract costs
31 8
8
► Other application guidance ► Disclosure requirements ► Effective date and transition ► Updates on the discussions of the Transition Resource Group for Revenue Recognition ► Challenges and Potential Issues in Adopting IFRS 15
Who should attend
IFRS 15 is a significant change from the current IFRS on revenue.
Although it provides application guidance, entities will need to exercise judgment in applying its requirements, as the use of estimates is more extensive under this new standard. The potential changes to revenue recognition for some entities may be significant so it is important for entities to start assessing the impact immediately. With the mandatory application less than two years away (mandatory effective date is 1 January 2017), early preparation is key to a successful implementation of the new standard.
Chief accountants, accounting managers, financial controllers and finance directors who are responsible for preparing and analyzing financial statements under PFRS Managers and finance professionals in the following functions: Finance and treasury operations Corporate planning Taxation Business operations and support Those who would like to gain an understanding of the new revenue recognition standard and its potential impact on the operations of an entity
9
3
3.1
Financial Instruments
Accounting for Financial Instruments
Outline
These are training courses on the following accounting standards on financial instruments: ► PAS 32, Financial Instruments: Presentation ► PAS 39, Financial Instruments: Recognition and Measurement ► PFRS 7, Financial Instruments: Disclosures ► PFRS 9, Financial Instruments These training courses range from an introduction of their basic concepts to more intensive training courses ultimately geared at helping companies understand the implications, potential solutions and process requirements of these standards.
10 1029 10
Who should attend
Accounting for Financial Instruments is one of the most complex areas in our local financial reporting framework. It affects various entities and various accounts in an entity’s balance sheet and income statement. This one-day course aims to discuss the key concepts, measurement, presentation and disclosure requirements for financial instruments.
Chief accountants, accounting managers, financial controllers and finance directors who are responsible for preparing and analyzing financial statements under PFRS Those who would like to gain a more in-depth understanding of accounting for financial instruments
► Introduction and key definitions ► Presentation: Debt vs. Equity ► Classification of financial assets and liabilities ► Categories of financial assets and liabilities ► Fair value option ► Reclassification ► Measurement ► Initial measurement ► Subsequent measurement ► Recognition and derecognition ► Initial recognition ► Derecognition of financial assets ► Derecognition of financial liabilities ► Offsetting financial assets and liabilities ► Impairment of financial assets ► Disclosures ► IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
11
This one-day course aims to provide participants with the basic concepts on how derivatives work, and the relevant accounting principles and treatment under PAS 39. The seminar will also cover the disclosure requirements for derivative transactions under PFRS 7. An overview of the changes to the hedge accounting rules under PFRS 9, the accounting standard that will eventually replace PAS 39, will also be covered.
12
Outline I.
Overview of PAS 32, PAS 39 and PFRS 7
II. Derivatives: Basic Concepts A. Introduction to derivatives ► Definition ► Characteristics of derivatives under PAS 39 ► Why companies enter into derivatives ► Types of derivative instruments ► Exchange-traded versus over-the-counter B. Forwards and futures ► Introductory concepts ► Difference between forwards and futures ► Mechanics of forward contracts C. Swaps ► Introductory concepts ► Mechanics of interest rate swaps ► Mechanics of cross currency swaps
D.
Options ► Introductory concepts ► Mechanics of options
E.
Embedded derivatives ► Definition and examples ► Bifurcation and accounting rules under PAS 39
III. Hedge and Non-Hedge Accounting Treatment for Derivatives A. Default accounting treatment for derivatives
B. Hedge accounting under PAS 39 ► Definitions ► Qualifying instruments ► Hedge accounting requirements ► Hedge effectiveness testing ► Types of hedge relationships (fair value and cash flow hedges) ► Discontinuing hedge accounting ► Practical issues ► Disclosure requirements IV. Overview of Hedge Accounting under PFRS 9
Who should attend
3.2
Derivatives and Hedge Accounting
Chief accountants, accounting managers, financial controllers and finance directors who are responsible for preparing and analyzing financial statements under PFRS Those who would like to gain a more in-depth understanding of derivatives and hedge accounting
13
3.3
Introduction to Accounting for Financial Instruments under IFRS 9
This is a half-day course that aims to discuss and provide participants with the underlying concepts and principles of IFRS 9 and provide illustrative examples of its application.
Who should attend
In July 2014, the final version of IFRS 9 was issued. IFRS 9 (2014) reflects all phases of the financial instruments project and replaces IAS 39, Financial Instruments: Recognition and Measurement, and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application permitted. Retrospective application is required, but restating comparative information is not compulsory.
14
Outline ► IAS 39 Replacement Project ► Classification and measurement rules ► Financial assets ► Financial liabilities ► The new hedge accounting model ► The expected credit loss model ► Effective date and transition ► Disclosure requirements ► Challenges and potential issues in adopting IFRS 9
Chief accountants, accounting managers, financial controllers and finance directors who are responsible for preparing and analyzing financial statements under PFRS Internal auditors, business development teams and other accounting professionals who would like to know how the final version of IFRS 9 will impact future transactions and accounting for financial instruments Those who would like to acquire knowledge of the underlying concepts and principles of IFRS 9
3.4
Implementing the New IFRS 9 Expected Credit Loss Model for Banks
A one-day program designed to provide participants with an understanding of the concepts and principles of the new expected credit loss model under IFRS 9 and the relevant regulatory requirements, including a high-level discussion of credit risk modelling.
BACKGROUND The 2008 financial crisis exposed the “too little, too late” weakness of the “incurred loss” model provisioning requirements under IAS 39. In response to the delayed recognition of credit losses, the IASB issued the new impairment requirements that are based on a more forward-looking “expected credit loss (ECL) model”. In 2014, the IASB issued the final version of IFRS 9, Financial Instruments, bringing together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace IAS 39 and all previous versions of IFRS 9.
Although the standard will apply to all entities, financial institutions such as banks will be most affected as their portfolios are largely comprised of financial assets measured at amortized cost or at fair value through other comprehensive income (FVOCI). Adopting the ECL requirements will require significant efforts, thus, necessitating a timely and effective preparation.
The new impairment model in the standard is designed to recognize credit losses earlier by requiring an allowance for either a 12-month or lifetime ECL.
15
3.4
Implementing the New IFRS 9 Expected Credit Loss Model for Banks (cont.)
Outline I. Overview of IFRS 9, Financial Instruments – Classification and Measurement and Hedge Accounting II. IFRS 9, Financial Instruments – Impairment of Financial Assets A. Historical overview B. Incurred loss (IAS 39) vs. Expected loss model (IFRS 9) C. Objectives of the expected loss model D. Financial assets within scope E. Relevant regulatory guidance for banks ► Basel Committee Consultative Document on Guidance on accounting for expected credit losses ► BSP Circular 855 on Guidelines on credit risk management practices
16
F. Mechanics of the general “three-bucket” model ► Stage 1 – 12-month expected credit loss allowance ► Stage 2 – Lifetime expected credit loss allowance ► Stage 3 – Lifetime expected credit loss allowance G. Determining significant increases in credit risk ► Changes in the risk of a default occurring ► Factors or indicators of changes in credit risk ► Defining the transfer criteria – what is “significant”? ► Simplifications and presumptions in assessing significant increase in credit risk
H. Applying the “three-bucket” model – Measurement of expected credit losses ► Defining “default” ► 12-month versus lifetime expected credit losses ► Expected life versus contractual period ► Probability-weighted outcome ► Time value of money ► Collateral ► Use of “reasonable and supportable information” ► Capturing “future default events” and the need for forecasting ► Contrasting expected credit loss concepts of Basel and IFRS 9
I. Exceptions of the general “three-bucket” model ► Trade receivables ► Credit impaired financial assets J. Special applications ► FVOCI assets ► Loan commitments ► Financial guarantee contracts ► Revolving credit facilities ► Initially credit-impaired assets ► Modified or restructured assets ► Trade and lease receivables III. Disclosure requirements IV. Effective date and transition V. Key differences from the FASB US GAAP proposals VI. Business impact and implementation challenges
17
Who should attend
3.4
Implementing the New IFRS 9 Expected Credit Loss Model for Banks (cont.)
4
PFRS 13 Fair Value Measurement
Officers and staff from the following functions: ► Credit risk policy and management ► Credit risk modelling ► Controllership and finance ► Corporate planning ► Treasury and treasury operations ► Internal audit
These are one or two-day courses on PFRS 13 designed for managers and finance professionals from various industries. These aim to provide comprehensive understanding of PFRS 13 principles and the framework for measuring the fair value of assets and liabilities.
18
19
4.1
An Intensive Training on PFRS 13 Outline
► Provide a comprehensive understanding of PFRS 13 principles and the framework for measuring fair value of financial and non-financial assets and liabilities, including: ► Key fair value measurement approaches ► Appropriate valuation techniques to use ► Inputs to valuation techniques ► Fair value hierarchy ► Equip participants with the skills and information to: ► Determine implications of the new standard to key areas where fair value measurement is required ► Assess impact on key business areas ► Disclosure requirements
20
► Introduction and seminar objectives ► PFRS 13 ► Background and objectives of PFRS 13 ► Scope ► Fair value measurement approaches ► Fair value hierarchy ► Disclosure requirements ► Business impact ► Fair value implications for real properties ► Valuation of unquoted equity securities ► Introduction ► Objective ► Process of fair value measurements
► Valuation approaches for unquoted equity securities
► Replacement cost and expected exposure
2. Income approach
► Portfolio valuation and consideration of credit mitigation
3. Other approaches
► Consideration of own credit risk
1. Market approach
► Common oversights ► Additional sources for valuation of unquoted equity securities ► Credit value adjustment ► Background ► Key credit risk concepts
Who should attend
This two-day course aims to:
► Calculation methods 1. Current and expected exposure approach 2. Discount rate approach 3. Variable and constant exposure approach 4. Valuation inputs for each approach
Executives working in entities: With financial instruments That use fair value model for investment property That revalue property, plant and equipment or intangible assets
Managers and finance professionals in the following functions: Comptrollership and accounting Finance and treasury operations Corporate planning Business operations and support Collateral appraisal and valuation
21
4.2
PFRS 13, Fair Value Entities Measurement, for Banks(SMEs)
This one-day course aims to help the participants acquire comprehensive understanding of PFRS 13 in the context of financial reporting in banks.
Outline
Who should attend
► Introduction and seminar objectives ► PFRS 13 ► Background and objectives ► Scope ► Fair value measurement approaches ► Fair value hierarchy ► Disclosure requirements ► Business impact ► Fair value implications for real properties ► Credit value adjustment ► Background
22
► Key credit risk concepts ► Replacement cost and expected exposure ► Portfolio valuation and consideration of credit mitigation ► Consideration of own credit risk ► Calculation methods 1. Current and expected future exposure approach 2. Discount rate approach 3. Variable and constant exposure approach 4. Valuation inputs for each approach
Executives working in banking institutions Managers and finance professionals in the following functions: Comptrollership and accounting Finance and treasury operations Internal audit Risk management Corporate planning Business operations and support Collateral appraisal and valuation
5
Key Aspects of Consolidation
This two-day course aims: ► To provide participants with the basic consolidation concepts and principles ► To illustrate the more difficult areas in preparing consolidated financial statements ► To inform participants about the concepts and principles of the standards on group accounting such as PFRS 10, 11 and 12 ► To update the participants with the most recent pronouncements related to consolidation and group accounting
Outline DAY 1 I.
Key definitions related to consolidated financial statements
II. Fundamental consolidation issues
B. Stand-alone financial statements III. Overview of business combination concepts A. Acquisition of assets versus acquisition of a business B. Common control business combinations ► Pooling of interest method C. Acquisition method of accounting D. Recognition and Measurement of: ► Consideration transferred ► Assets and liabilities acquired ► Goodwill or gain on bargain purchase ► Non-controlling interests E. Subsequent measurement and accounting IV. Concept of control and how to assess control
A. Accounting for investments in the investor’s stand-alone financial statements 23
Key Aspects of Consolidation (cont.)
DAY 1 (cont.) V. Overview of the provisions of the following standards: A. PFRS 11, Joint Arrangements B. PAS 28, Investments in Associates and Joint Ventures ► ► Accounting for investments in associates ► ► Application of the equity method of accounting ► ► Elimination of share of unrealized profits or losses from transactions between the investor and the associate VI. Consolidated statement of financial position and statement of comprehensive income A. Discussion of the rules in preparing: ► Consolidated statement of financial position ► Consolidated statement of comprehensive income
15
24 24
DAY 2 I. Consolidated statement of financial position and statement of comprehensive income (cont.) B. Discussion of the rules on: ► Consolidation adjustments ► Elimination of intercompany transactions ► Impact of elimination of intercompany transactions on non-controlling interests
IV. Key disclosure requirements: A. Accounting policies B. Judgments and estimates C. Required disclosures on subsidiaries with material non-controlling interests D. Required disclosures on material associates and joint ventures E. Deferred tax assets and deferred tax liabilities
V. Philippine SEC requirements on consolidated financial statements VI. Amendments to existing standards on group accounting and business combinations effective in 2015 and beyond
II. Consolidated statement of changes in equity III. Consolidated statement of cash flows A. Issues relating to the preparation of the consolidated statement of cash flows B. Examples on the preparation of a consolidated statement of cash flows
Who should attend
5
Chief accountants, accounting managers, financial controllers and finance directors who are responsible for the preparation of consolidated financial statements Those who are responsible for the preparation of group reporting packages that will be used as inputs for consolidated financial statements Those who would like to gain a more in-depth knowledge on the principles of consolidation and control
25 15
6
PFRS for Small and Medium-Sized Entities (SMEs)
PFRS for SMEs is a one-day course that aims to provide the following: ► Updates on the accounting standards for SMEs; including updates on the IASB’s Comprehensive Review on IFRS for SMEs ► A comparison of these accounting standards with the full PFRS ► Specific guidance from the Philippine SEC on accounting standards applicable for SMEs ► Answers to frequently asked questions
Outline ► Background on PFRS for SMEs ► Philippine SEC Guidance on PFRS for SMEs ► Concepts and Pervasive Principles ► Comparison: PFRS for SMEs versus Full PFRS ► Preparation and presentation of financial statements ► Elements of financial statements ► Overview of the IASB’s Comprehensive Review of IFRS for SMEs ► Philippine Interpretations Committee (PIC) Final Questions and Answers (Q&A) on Philippine Adoption of SME Implementation Group (SMEIG) Q&As 17
26
Who should attend
The PFRS for SMEs is self-contained and is a complete set of generally accepted accounting principles. It is based on the full PFRS but is tailored to the needs and resources of those entities that are not required to apply the full PFRS.
Chief accountants, accounting managers, financial controllers and finance directors who are responsible for preparing and analyzing financial statements under PFRS for SMEs Those who would like to gain an understanding of the application of PFRS for SMEs
27
This is a two-day course that focuses on the fundamentals of accounting, the basic accounting concepts and principles, and the elements of the financial statements. The seminar is designed to help ‘non-accountant’ managers, directors, owners and employees gain an understanding of the basic accounting concepts and their actual application to their businesses. The course also aims to equip participants with tools and techniques that can be useful for the preparation and analysis of financial accounting reports and financial projections. This course is divided into two modules: ► Module 1 is about the basic accounting principles, concepts and the various elements of the financial statements ► Module 2 is about tools and techniques of financial analysis for use in various applications
28
Module 1
Module 2
► Introduction ► Basic accounting concepts ► Accounting assumptions ► Accounting principles ► Financial transaction analysis ► Overview of an accounting information system ► Objectives of an accounting system ► Features of an effective accounting system ► Flow of accounting data in a typical accounting system ► Nature, purpose and elements of the following: ► Statement of financial position (balance sheet) ► Statement of comprehensive income ► Statement of changes in equity ► Statement of cash flows ► Cost concepts and classification
► Tools and techniques of financial analysis for use in various applications
Who should attend
7
Accounting for Non-accountants
Those who would like to gain a more in-depth understanding of the accounting process Business owners, entrepreneurs, managers and directors who need to use accounting reports for decision making Those who would like to acquire fundamental knowledge of the underlying accounting concepts and principles
29
8
PFRS Series
Course Offerings and Description
8.1 Accounting for Property, Plant and Equipment and Investment Properties This course helps the participants understand the basic provisions of PAS 16, Property, Plant and Equipment, PAS 40, Investment Property, and PFRS 5, Noncurrent Assets Held for Sale and Discontinued Operations, and the interaction of these three standards. This course covers the following topics:
These are half-day courses designed for more focused, back-to-the-basics discussions on specific accounting standards. The courses are a mix of basic concepts and actual hands-on practice or case studies. Participants may choose to register in only one course or in various courses, depending on their specific training needs.
3024
► Scope ► Definitions and criteria for classification ► Accounting for acquisition costs and subsequent measurements ► Models of valuation (cost, fair value and revaluation model) ► Methods of depreciation ► Capitalization of borrowing costs ► Conditions for classification as noncurrent asset held for sale ► Disposal groups ► Presentation and disclosure requirements ► Case studies
8.2 Accounting for Income Taxes The objective of this course is to enable the participants to interpret and apply the concepts of PAS 12, Income Taxes, specifically current and deferred income taxes, tax bases of assets and liabilities and temporary differences. This course covers the following topics: ► Definitions – current tax, deferred tax and temporary differences ► Tax base of assets and liabilities ► Measurement and recognition of income tax and deferred tax ► Presentation and disclosure requirements ► Case studies ► A short discussion on transfer pricing rules and regulations
31
8.3 Group Accounts: PFRS 10, 11 and 12 This course aims to: ► Discuss and provide participants with the underlying concepts and principles of PFRS 10, Consolidated Financial Statements, PFRS 11, Joint Arrangements and PFRS 12, Disclosure of Interests in Other Entities ► Discuss and provide illustrative examples of the application of these standards ► Provide potential resolution of issues and gray areas resulting from their application
32
8.4 PAS 19, Employee Benefits (Revised) This course covers the following topics: ► Introduction to standards on consolidation, joint arrangements and related disclosures ► PFRS 10 ► The control model ► Illustrative examples ► PFRS 11 ► Classification of joint arrangements ► Illustrative examples ► PFRS 12 ► Key disclosure requirements for subsidiaries, joint arrangements, associates and structured entities ► Investment Entities (amendments to PFRS 10, PFRS 12 and PAS 27, Separate Financial Statements)
This course aims to: ► Provide participants with the basic concepts of PAS 19 ► Provide examples and illustrative disclosures ► Explain the standard’s tax implications, and ► Discuss the common difficulties in the application of this standard This course covers the following topics: ► PAS 19, Employee Benefits (Revised) ► Frequently asked questions ► Examples ► PAS 19 (Revised) illustrative disclosures ► Tax implications
8.5 Impairment of Assets …………….. This half-day course provides participants with the underlying concepts and principles of PAS 36. It also provides illustrative examples of their application. This course covers the following topics: ► Objectives and scope of PAS 36 ► Identifying when an asset may be impaired ► Impairment testing ► Recoverable amount definition and calculation ► Impairment loss measurement ► Impairment of property, plant and equipment and intangible assets ► Impairment of goodwill and cash-generating units ► Impairment reversals ► Disclosure requirements ► Common errors and issues relating to impairment testing ► Case study
33
PFRS Workshops The following workshops, part of the PFRS Series, are designed to equip companies’ accountants and finance people with the practical knowledge on certain elements and disclosure requirements of the financial statements.
8.6 A Workshop on the Preparation of the Statement of Cash Flows As one of the four basic financial statements, the statement of cash flows is key in determining what the sources of the company’s cash are and where the cash goes. For some financial statement analysts and readers, this statement may be equally important, if not more important, than the other financial statements. This workshop is designed to help the participants prepare the statement of cash flows as required by PAS 7, Statement of Cash Flows.
34
The participants will learn the basics of calculating the individual components of this statement as well as the non-operating changes in assets and liabilities due to various factors such as acquisitions and disposals, foreign currency translations and other comprehensive income. This course will cover the following: ► Objectives and definitions ► Examples of operating, investing and financing activities ► Methods of reporting cash flows from operating activities ► Reporting other cash flow items ► Balance sheet changes and cash flow adjustments ► Non-cash items and transactions ► Other cash flow topics: pensions, acquisitions and disposals of subsidiaries and other businesses, discontinued operations and foreign currency translations ► Presentation and other disclosure requirements ► Case studies
8.7 A Workshop on Segment Reporting
8.8 Related Party Transactions and Disclosures
This workshop is designed to help the participants apply the specific provisions of PFRS 8, Segment Information, in their financial statements. It provides actual examples and hands-on applications on the key elements or provisions of this accounting standard.
The increasing focus by the public, in general, and the regulators, in particular, on related party transactions make it imperative that entities properly identify who their related parties are, account for these transactions accurately and ensure completeness of the disclosures on related party transactions.
This course will cover the following: ► Core principles and scope ► Operating segment – definition and aggregation ► Reportable operating segments (with specific examples) ► Quantitative thresholds ► Measurement and reconciliations ► Disclosure requirements ► Case studies on determining reportable operating segments, quantitative thresholds and measurements and reconciliations
This workshop will help participants determine an entity’s related parties and gain familiarization not only on the disclosure requirements of PAS 24, but also with the regulatory requirements on disclosures of related party transactions. This course will cover the following: ► Scope and objectives ► Definitions ► Related parties ► Other definitions
35
PFRS on Demand
8.8 Related Party Transactions and Disclosures (cont.)
8.9 A Workshop on the Preparation of Interim Financial Statements
► Relationships that are not necessarily within the definitions ► Disclosure requirements of PAS 24 ► SEC pronouncements and requirements for related party transactions ► An overview of transfer pricing regulations ► Illustrative disclosures
The objective of this workshop is to enable the participants to gain an understanding of the contents and disclosure requirements related to interim financial statements, as prescribed by PAS 34, Interim Financial Reporting, and by current regulations. This course will cover the following: ► Scope and objective ► Definitions ► Minimum contents of the interim financial statements ► Form and content ► Requirements for the presentation of interim financial statements ► Disclosure requirements ► Examples of: ► Recognition and measurement ► Use of estimates ► Restatements of interim financial statements ► Current regulatory requirements regarding interim financial statements
36
In addition to the standard courses, we also create and deliver customized PFRS courses that are geared towards addressing our clients’ needs. These courses can run anywhere from half a day to 5 days and can cover any aspect of the accounting standards, including focus on specific industries. When you avail of our customized PFRS courses, you will enjoy the following benefits: ► Savings on training cost ► Customized topics and targeted training ► Location and dates of your choice
37
Schedule of Trainings Title 1. PFRS: Changes in 2015 and Beyond
2. Introduction to the New Revenue Recognition Standard
Duration
Date
2 days
June 24-25, 2015 Sept. 15-16, 2015
Half day
Aug. 18, 2015
3. Financial Instruments
Title 7.
Duration Date
Accounting for Non-accountants
Jan. 19-20, 2016
8. PFRS Series 8.1 Accounting for Property, Plant and Equipment and Investment Properties
Half day
July 15, 2015 (AM) Sept. 22, 2015 (AM)
8.2 Accounting for Income Taxes
Half day
July 15, 2015 (PM) Sept. 22, 2015 (PM)
8.3 Group Accounts: PFRS 10, 11 and 12
Half day
Aug. 18, 2015 (AM)
3.1 Accounting for Financial Instruments
1 day
July 14, 2015 Oct. 21, 2015
3.2 Derivatives and Hedge Accounting
1 day
Aug. 11, 2015 Nov. 10, 2015
3.3 Introduction to Accounting for Financial Instruments under IFRS 9
Half day
June 18, 2015 (AM)
8.4 PAS 19, Employee Benefits (Revised)
Half day
July 21, 2015 (AM) Sept. 23, 2015 (AM)
Aug. 20, 2015 (AM)
8.5 Impairment of Assets
Half day
3.4 Implementing the New IFRS 9 Expected Credit Loss Model for Banks
1 day
July 21, 2015 (PM) Sept. 23, 2015 (PM)
8.6 A Workshop on the Preparation of the Statement of Cash Flows
Half day
July 22, 2015 (AM) Oct. 21, 2015 (AM)
8.7 A Workshop on Segment Reporting
Half day
Aug. 19, 2015 (AM)
8.8 Related Party Transactions and Disclosures
Half day
July 22, 2015 (PM) Oct. 22, 2015 (PM)
8.9 A Workshop on the Preparation of Interim Financial Statements
Half day
Aug. 19, 2015 (PM)
June 9, 2015
4. PFRS 13, Fair Value Measurement 4.1 An Intensive Training on PFRS 13
2 days
July 14-15, 2015
4.2 PFRS 13, Fair Value Measurement, for Banks
1 day
5. Key Aspects of Consolidation
2 days
June 23-24, 2015 Oct. 13-14, 2015
6. PFRS for Small and Medium-Sized Entities (SMEs)
1 day
July 8, 2015
38
Aug. 17, 2015
Schedules are subject to change without prior notice. Please confirm the scheduled dates prior to finalizing your registration.
39
SGV & Co. Assurance | Tax | Transactions | Advisory About SGV & Co. SGV is the largest professional services firm in the Philippines that provides assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. SGV & Co. is a member firm of Ernst & Young Global Limited. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com/PH. © 2015 SyCip Gorres Velayo & Co. All Rights Reserved. APAC No. 10000052 For inquiries and concerns, contact us: Ma. Emilita L. Villanueva
[email protected] / 891-0307 local 7911 Jerome M. Austria
[email protected] / 891-0307
40
41
