FM119: Saudi GAAP Transition to International Financial Reporting Standards (IFRS): Compliance with SOCPA

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1 FM119: Saudi GAAP Transition to International Financial Reporting Standards (IFRS): Compliance with SOCPA FM119 Rev.001 CMCT COURSE OUTLINE Page 1 of 5

2 Training Description: Do you want to prepare your accounting and finance team for a successful transition from Saudi GAAP to International Financial Reporting Standards (IFRS)? With this course, you will recognize the key differences between the two standards, identify the steps in applying IFRS for the first time and their effect on your financial statements, and get acquainted with the latest updates. This course will help you remain in compliance with requirements of the Saudi Organization of Certified Public Accountants (SOCPAs) while furthering your understanding of the transition s requirements. It will give you the knowledge and skills to prepare for such a transition while you exchange knowledge with other participants attending from various organizations operating in Saudi Arabia. Training Objective: By the end of the training, participants will be able to: List major differences in financial accounting and reporting between International Financial Reporting Standards (IFRS) and accounting standards generally accepted in the Kingdom of Saudi Arabia (Saudi GAAP) Recognize the effect of the transition from Saudi GAAP to IFRS on their company s financial statements and identify mandatory exceptions and optional exemptions from this transition Prepare financial statements for entities adopting International Financial Reporting Standards for the first time Explain how to account for assets, liabilities, equity, revenues and expenses under both IFRS and Saudi GAAP Apply the different accounting methods allowed under IFRS and Saudi GAAP to multiple situations Training Designed for: This course is designed for Staff Accountants, Senior Accountants, Chief Accountants, Accounting Managers, Controllers, Internal Auditors, and other professionals in the accounting and finance functions. Target Competencies Financial accounting and reporting Comparison of financial standards Applying differences between IFRS and Saudi GAAP Performing gap analysis Managing transition process Training Program: DAY ONE: PRE-TEST Introduction and Key Financial Statements Financial reporting standards setters: o Role of International Accounting Standards Board (IASB) FM119 Rev.001 CMCT COURSE OUTLINE Page 2 of 5

3 o Saudi Organization for Certified Public Accountants (SOCPA) Update on future milestones on road to transition Comparison of presentation and classification of financial statements: o Statement of financial position o Statement of income and comprehensive income o Statement of cash flows o Statement of changes in owners equity DAY TWO: IFRS 1: First time adoption of international financial reporting standards Entities subject to IFRS 1 Opening IFRS statement of financial position Mandatory exceptions from retrospective application Optional exemptions from retrospective application Deemed cost option: measuring assets at fair value DAY THREE: Comparison of Current and Non-Current Assets Cash and cash equivalents Inventory costing methods o Valuation at initial recognition o Subsequent measurement Inventory cost flow assumptions Property, plant and equipment o Cost model versus revaluation model o Component depreciation o Treatment of idle assets o Assets received as part of a grant Intangible assets o Cost model versus revaluation model o Incorporation and start-up costs o Research and development costs Investment property o Cost model versus fair value o Subsequent depreciation Capitalizing borrowing costs Treatment of decommissioning costs Impairment of long lived assets DAY FOUR: Comparison of Liabilities and Equities Criteria of recognition and disclosures o Provisions o Contingent liabilities FM119 Rev.001 CMCT COURSE OUTLINE Page 3 of 5

4 o Contingent assets Other comprehensive income components: new to SOCPA Accounting Changes and Discontinued Operations Treatment of changes in accounting policies o Changes in estimates o Correction of prior period errors o Initial recognition for discontinued operations o Subsequent measurement for discontinued operations DAY FIVE: Newest Standards Introduced IFRS 9: Financial instruments o Classification of debt and equity investments under IFRS 9 Fair Value Though Profit and Loss (FVTPL) Fair Value Through Other Comprehensive Income (FVTOCI) Amortized Cost (AC) o How to determine a business model for classifying financial assets o Initial and subsequent measurement o Transfer between categories o Impairment of financial assets under IFRS 9 IFRS 15: Revenue from contracts with customers o Step 1: Identify the contract with the customer o Step 2: Identify the performance obligations in the contract Separate goods from services o Step3: Determine the transaction price Effect of time value of money Accounting for variable consideration o Step 4: Allocate the transaction price to the performance obligations in the contract o Step 5: Recognize revenue when the entity satisfies a performance obligation Separate performance obligation satisfied at a point in time from performance obligation satisfied over a period of time IFRS 16: Leases o Reasons for the transition from IAS 17 to IFRS 16 o Recognition exemptions: expensing lease payments How will the lease of small value items be affected? o Identifying a lease transaction o Separating components of lease contract o Accounting by lessees o Accounting by lessors o Effective date and transition Course Conclusion POST-TEST and EVALUATION FM119 Rev.001 CMCT COURSE OUTLINE Page 4 of 5

5 Training Requirement: Hand s on practical sessions, equipment and software will be applied during the course if required and as per the client s request. Training Methodology: This interactive training course includes the following training methodologies as a percentage of the total tuition hours:- 30% Lectures, Concepts, Role Play 30% Workshops & Work Presentations, Techniques 20% Based on Case Studies & Practical Exercises 20% Videos, Software & General Discussions Pre and Post Test Training Certificate(s): Internationally recognized certificate(s) will be issued to each participant who completed the course. Training Timings: Daily Timings: 07:45-08:00 Morning Coffee / Tea 08:00-10:00 First Session 10:00-10:20 Recess (Coffee/Tea/Snacks) 10:20-12:20 Second Session 12:20-13:30 Recess (Prayer Break & Lunch) 13:30-15:00 Last Session For training registrations or in-house enquiries, please contact: Aisha Relativo: aisha@cmc-me.com Tel.: or Mob.: Training & Career Development Department FM119 Rev.001 CMCT COURSE OUTLINE Page 5 of 5

Saudi GAAP Transition to International Financial Reporting Standards (IFRS): Compliance with SOCPA

Saudi GAAP Transition to International Financial Reporting Standards (IFRS): Compliance with SOCPA Why Attend Do you want to prepare your accounting and finance team for a successful transition from Saudi