Objectives and advantages. u To analyse, interpret and report on financial statements and related information to different user groups.

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1 IFRS Workshops Application of International Financial Reporting Standards Client Relations Officer Warszawa Aleksandra Trych tel Poznań Katarzyna Pudelska tel Wrocław Renata Michalak tel u International Financial Reporting Standards is a programme covering existing International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and IFRIC interpretations. Up to and including IFRS 13. u Comprehensive course materials provided u Interactive training based on exercise solving and discussion of real-life scenarios u Progress tests throughout the programme to assess the knowledge of participants u Diploma awarded upon completion of the programme and passing of the final exam Objectives and advantages u To apply advanced accounting principles and techniques in a practical context. u To evaluate and apply various international standards. u To analyse, interpret and report on financial statements and related information to different user groups. u To ensure that preparers and users of financial statements are up-to-date with current amendments and requirements of IFRS. We organize in-company training at a customer s individual request.

2 Who are the workshop for? Accountants, chief accountants, controllers and finance managers who would like to understand, interpret and apply IFRS. The course assumes knowledge of basic accounting procedures and double entry bookkeeping. No prior knowledge of accounting standards is required. Structure The course is composed of a mixture of lectures, question and answer sessions, practical exercises and illustrations as well as home study. The programme is divided into six modules, each consisting of two days of training with about three weeks break between the course days. During the time between courses participants are expected to study at home in their own time and solve tests. Tests are marked by the EY Academy of Business team and sent back to participants together with the solutions. Materials Participants receive comprehensive course notes in Polish, which include a theoretical component summarizing the key elements of IFRS as well as practical tests and solutions. It is also possible (only for course participants) to purchase the training materials in English at additional cost. u 200 zł + 23% VAT - the cost of materials to the whole programme Examination The programme finishes with a two and a half hour written examination. After passing the exam with a positive result (at least 50% of the total marks), those students who have attended the whole course receive an EY Academy of Business diploma. The examination will cover only the topics discussed at the course. An hot line is available to facilitate contact with the tutor if any problems or questions regarding homework assignments should arise. It is possible to participate in selected modules only.

3 Programme module I Day 1 Introduction to International Financial Reporting Standards (IFRS) u Basic historical background to financial reporting and accounting internationally. u Structure of the International Accounting Standards Board including current developments and discussion of the work of the International Financial Reporting Interpretations Committee. u Role of International Financial Reporting Standards in European Union countries and the United States. u The Standard Setting process. u IFRS Conceptual Framework with emphasis on basic accounting concepts and the definitions of assets, liabilities, revenue, costs and equity. Presentation of Financial Statements u The current format of financial statements. u The operating cycle relevant to specific business activities and the classification of assets and liabilities into current/non current. u Minimum requirements regarding the presentation of items in the income statement/statement of comprehensive income and statement of financial position/balance sheet; presentation of illustrative formats. u Statement of changes in equity. u Interim reporting. Inventories u Measurement at recognition: purchase price, cost of conversion, other costs included in the valuation of inventory. u Net realizable value definition and practical examples of valuation. u Standard costing and retail methods. u Various methods of apportioning costs to units: FIFO and weighted average. Revenue Recognition u Basic revenue categories: from sale of goods, provision of services, interest, royalties and dividends. u Conditions for revenue recognition. u Fair value measurement: discussion of the need for discounting future cash flows when revenue is to be received in the future; accounting for discounted revenue. Day 2 Property, Plant and Equipment u Measurement at recognition: costs to be capitalized at initial recognition (purchase price, production cost, costs of removing the asset at the end of its useful economic life). u Definition of depreciable amount; various depreciation methods: straight-line, diminishing balance, sum of digits, units of production. u Component accounting. u Measurement after recognition: cost model and revaluation model. u Accounting for revaluations and disposals of non current assets. u Changes in depreciation methods and revisions of useful life. u Presentation and disclosure of non current assets. Borrowing Costs (loans, credits) u Definition of borrowing costs u Accounting treatment of borrowing costs under the revised IAS 23 u Key issues related to capitalization: qualifying assets, capitalization period and capitalization rate. Government Grants and Disclosure of Government Assistance u Grants related to income and grants related to assets. u Discussion of the two methods of accounting for government grants recommended under IAS 20. Investment Properties u Definition and measurement at recognition of investment properties. u Criteria for classification as investment property; reclassification rules. u Valuation methods: cost model and fair value model; conditions for applying the fair value model, accounting for changes in fair value. Events after the Reporting Date u Defining the period during which events after the reporting date arise. u Adjusting and non-adjusting events practical examples and accounting treatment. Accounting Policies, Changes in Accounting Estimates and Errors u Hierarchy of sources for choosing accounting policies. u Definition of past period errors and the accounting treatment applied to correction of errors. u Accounting estimates and their changes.

4 Programme module II Day1 Leases u Leasing agreements in the light of the substance over form principle. u Categories of leases and their impact on the financial statements of the lessor and the lessee. u Step by step guide to identifying whether a lease is finance or operating and the accounting entries required. u Methods of splitting payments under finance lease into interest and capital components including the sum of the digits and the actuarial methods. u Accounting for sale and leaseback transactions. u Disclosure requirements. Substance over form u Most common issues requiring analysis of economic substance: sale and repurchase agreements, consignment sales, factoring of receivables, securitization of assets. Construction Contracts u The nature of revenue and costs arising on long term contracts. u Methods of recognizing revenue and costs in the income statement/statement of comprehensive income: completed contract and stage of completion. u Practical guidelines on the choice of method for measuring the stage of completion. u Treatment of loss generating contracts. u Presentation of construction contracts in the balance sheet/statement of financial position. u Disclosure and presentation requirements for long term contracts. Day 2 Introduction to Group Accounting u Methods of accounting for investments in individual company accounts and their impact on consolidated financial statements. u When to use the various methods of consolidation. u Definitions of a subsidiary, associate, joint venture, control, joint-control, significant influence and other definitions relating to group accounting. Consolidated Statement of Financial Position and Statement of Comprehensive Income u Step by step guide to the preparation of the consolidated statement of financial position based on discussion of examples. u Goodwill and gain on bargain purchase. u Impairment of goodwill u Revaluation of the assets and liabilities of a subsidiary to fair value. u Non-controlling interests in the statement of financial position. u Consolidation adjustments eliminating: equity and investments, intra-group balances (trade, loans), unrealized profit on intra-group transactions arising from the transfer of inventory and non-current assets (including the impact on depreciation), Dividends. u Step by step guide to the preparation of the consolidated statement of comprehensive income based on discussion of examples. u Eliminating intra-group transactions from the perspective of the statement of comprehensive income (sales, cost of sales, dividends). u The impact of transactions on non-controlling interests. Related Party Transactions u Definition of related parties and the need to disclose transactions and balances with related parties. u Types of transactions requiring disclosure; discussion of required level of detail of disclosures.

5 Programme module III Day1 Statement of Cash Flows u The need for a statement of cash flows and how it is prepared from information contained in the income statement/statement of comprehensive income, balance sheet/statement of financial position and notes to the financial statements. u Definition of cash and cash equivalents; examples of items classified as both of the above. u The indirect and direct methods of constructing the cash flow statement. Provisions, Contingent Liabilities and Contingent Assets u Definitions of provisions, contingent liabilities and contingent assets u Obligating events: legal and constructive obligations u Provisions for future operating losses and onerous contracts. u Measurement rules: defining the expenditure required to settle the obligation, discounting and unwinding of the discount. u Conditions for recognizing provisions for restructuring expenses. u Discussion of criteria for recognition in the statement of financial position or in the notes to the financial statements. Day 2 Impairment of Assets u Identifying external and internal impairment indicators. u Measuring recoverable amount and identifying situations in which an impairment loss needs to be recorded. u Value in use under IAS 36 and how to calculate it. u Identifying cash generating units (CGUs); allocating impairment losses to specific assets in a CGU. u Reversal of impairment losses. Intangible Assets u Discussion of definitions. u Conditions for recognition of intangible assets: identifiability, control, future economic benefits, reliable measurement. u Intangible assets identified in business combinations. u Treatment of research and development costs. u Treatment of goodwill First time adoption of international standards u The scope of IFRS 1 definition of entities applying international standards for the first time u Rules relating to first time adoption of IFRS: defining the reporting date and the date of transition to IFRS, applying compulsory and voluntary exemptions, impact on comparatives. Deferred Taxation u Identifying taxable and deductible temporary differences. u Tax base of assets and liabilities. u Accounting for deferred tax assets and liabilities using the liability method. u Measurement and presentation of deferred tax assets. u Deferred tax balances. u Deferred taxation in consolidated financial statements.

6 Programme module IV Day1 Earnings per Share u Methods of calculating basic and diluted earnings per share. u Impact of issue of shares at full market price, share splits, bonus issues and rights issues on the weighted average number of shares and comparatives. u Treatment of potential ordinary shares: options, convertible preference shares, convertible loans and convertible debentures. u Determining the order in which potential dilutive factors are included in the calculation of the weighted average number of shares. u Earnings per share for continuing operations. Segment Reporting u The necessity for segment reporting. u Definition of operating segment and Chief Operating Decision Maker. u Discussion on the criteria for presentation of separate segments. u Inter-segment transactions. u Discussion on the changes required by IFRS 8: Operating segments. Non-current Assets Held for Sale and Discontinued Operations u Non-current assets held for sale classification criteria. u Measurement of non-current assets held for sale at the date of classification. u Accounting for disposal groups. u Discussion of when discontinued operations arise and the disclosure requirements in IFRS 5. u Accounting for discontinued operations in comparatives. Day 2 The Equity Method u Accounting for associates in the standalone and consolidated financial statements. u Discussion, based on an example, of the treatment of an investment in the statement of financial position and statement of comprehensive income under the equity method. u Elimination of unrealized profits from transactions between investor and associate. u Goodwill and gain on bargain purchase. IFRS 11 Joint Arrangements u Factors that influence the classification of joint arrangements: legal form, contractual arrangements and other. u Accounting for joint operations and joint ventures u Numerical examples illustrating the principles Business combinations u Discussion of how the revised FRS 3 has changed consolidation/group accounting. u Discussion of basic issues described in IFRS 10: new definition of control, potential voting rights, de facto control, identification of relevant activities, protective rights, continuous assessment. u Deferred and contingent consideration. u Re-measurement of assets, liabilities and contingent liabilities at fair value. Impact of remeasurement on the date of acquisition in the consolidated statement of financial position fair value adjustments in subsequent years. IFRS 12 Disclosure of Interests in Other Entities u The purpose and scope of disclosures u Disclosures required for significant interests in subsidiaries, joint arrangements and associates u Other disclosures Changes in Foreign Exchange Rates and Consolidation of Foreign Subsidiaries u Functional and presentation currencies. u Criteria considered in selecting the functional currency. u Accounting for foreign currency transactions on initial recognition, settlement and balance sheet dates. u Recognition of exchange differences. u Translating the results and financial position of foreign subsidiaries included in the consolidated accounts. u Rules for applying foreign exchange rates to assets, liabilities, equity, income and costs. u Recognition of exchange differences in consolidated financial statements: share of group and non-controlling interests. u Elimination of balances and transactions with a foreign entity. u Translation of goodwill. Financial Reporting in Hyperinflationary Economies u Criteria considered in assessing whether hyperinflation exists. u Financial statement items subject to adjustments due to hyperinflation.

7 Programme module V Day1 Financial Instruments: IAS 32 Presentation, IAS 39 Recognition and Measurement, IFRS 7 Disclosure, IFRS 9. u Discussion of the various classes of financial instruments, such as: financial assets and financial liabilities at fair value through profit or loss, loans and receivables, held-tomaturity investments, available-for-sale financial assets and other liabilities. u Recognition of gains and losses on the measurement of each class of financial instruments. u Measurement of financial assets and liabilities under the amortized cost method. Calculation of the effective interest rate. Measurement of fixed and variable interest instruments on the date of interest payment. u Classification as equity and liabilities. Compound financial instruments debentures convertible to shares. u Rules for recognizing impairment losses under IAS 39. Impairment of assets carried at amortized cost and available-for-sale. u Derivative instruments, with emphasis on forwards, futures and options. u Measurement and accounting for derivative foreign exchange contracts classified as held-for-trading. u Contracts hedging fair value and future cash flows. Definition and examples of fair value and cash flow hedges. Formal conditions for using hedge accounting. Identifying the hedged item and hedging instrument. Accounting treatment. u Embedded derivatives: definition, identification, separation and accounting treatment. u Disclosures required under IFRS 7 u Discussion on the current status of IFRS 9. Day 2 Group Statements of Cash Flows u Dealing with the various issues that arise on preparation of group statements of cash flows such as investments in associates, dividends paid to non-controlling interests and the acquisition and disposal of subsidiaries during the period. u Preparing the consolidated statement of cash lows using the indirect method on the basis of information from the consolidated statement of financial position, statement of comprehensive income and notes to the financial statements. More complex consolidation techniques u The impact of piecemeal acquisitions on goodwill calculation. u Accounting for disposals of all or part of a subsidiary: calculating the consolidated profit on disposal; accounting for disposals resulting in a reduction of the shareholding, where a controlling interest remains, an associate or investment remains. u Consolidation of groups, in which control is exercised indirectly vertical and mixed groups. u Piecemeal acquisition under IFRS 10. u The issues with acquiring and losing control. u Group reorganisations including discussion on transactions between entities under common control

8 Programme module VI Day1 Employee benefits u Jubilee and retirement bonuses. u Holiday pay accruals. u The operation of pension schemes. u Defined benefit and defined contribution pension schemes. u Disclosure requirements for employee benefits. Dzień 2 (B) Revision of the most important issues in order to prepare for the final examination. IFRS 13 Fair value measurement u Definition of fair value and related terms. u Principal market and the most advantageous market. u Transaction costs. u Highest and best use. u Valuation techniques. Share Based Payment u Equity-settled and cash-settled share based payments u Definition of the grant date, vesting period and vesting date. u Accounting for market and non-market vesting conditions. u Impact of modification, cancellation and cancellation with compensation on accounting for equity-settled arrangements. u Accounting for equity-settled transactions in situations, when the entity or counterparty have the choice of whether to settle in equity or cash.

9 Timetable Warszawa no. 34 Module 1A 19 April 2017 Module 1B 20 April 2017 Module 2A 15 May 2017 Module 2B 16 May 2017 Module 3A 19 June 2017 Module 3B 20 June 2017 Module 4A 11 September 2017 Module 4B 12 September 2017 Module 5A 2 October 2017 The courses run from 9 am to 4.30 pm. Two breaks for coffee and snacks are scheduled during the day and at 1 pm participants are invited to lunch (included in the price). All dates will be confirmed before the start of the course. In exceptional circumstances students may participate in a missed module with another group. In order to do that, we kindly ask to contact our client relations officer, at least 7 days before the course. Module 5B 3 October 2017 Module 6A 8 November 2017 Revision 9 November 2017 Exam 24 November 2017 Poznań no. 15 Wrocław no. 15 Module 1A 28 February May 2017 Module 1B 1 March May 2017 Module 2A 11 April June 2017 Moduł 2B 12 April June 2017 Module 3A 9 May September 2017 Module 3B 10 May September 2017 Module 4A 20 June October 2017 Module 4B 21 June October 2017 Module 5A 5 September November 2017 Module 5B 6 September November 2017 Module 6A 12 October December 2017 Revision 13 October December 2017 Exam 27 October December 2017

10 Costs Each module consisting of two full training days costs PLN 1, % VAT. For those wishing to complete the full course and paying for the whole programme upfront, the cost is PLN 9, % VAT per person. How to apply? If you are interested in the IFRS training programme please complete the attached application form and send it to us by fax at least one week before the start of the course. Information If you would like to receive more detailed information, please call or us at: academyofbusiness@pl.ey.com Information about the full range of our courses is available on our website at: It is possible to organize in-company training at a customer s individual request. The price includes course participation and materials for individual home-study. Payment should be made before commencement of each module on the basis of a pro-forma invoice. After payment has been made, each participant will receive an invoice. Recommendations Our courses fulfill the requirements of international professional organisations such as ACCA and IIA, relating to the professional development of their members. In order to complement your knowledge we offer the following courses: IFRS Update This training course is addressed to those responsible for preparing and analyzing financial statements under IFRSs. The course aims to provide an update on recent developments in IFRSs. The A to Z of Consolidated Financial Statements the course enables participants to develop skills from a basic level right up to an understanding of more complex consolidation issues. Accounting for financial instruments under IFRS Two-day course that provides knowledge of the principles of recognition, measurement and presentation of financial instruments in the financial statements of companies reporting under International Financial Reporting Standards. Advanced analysis of financial statements Training focuses on common concerns of preparers and analysts of financial statements, i.e. areas of financial accounting, which are mostly based on estimates made by the company or associated with complex and frequently changing rules of recognition and measurement. Law for managers or what a manager should know before he calls a lawyer/attorney a series of four one-day courses aimed at broadening knowledge about the functioning of an enterprise. The participants will learn the practical aspects of law facilitating their business and private lives. Process management Two-module course, which includes two simulation games, aims at improving the effectiveness and efficiency of the existing business processes.

11 Application form Application of IFRS Please complete this form and return by to: or by fax to: All information concerning the programme will be sent by to the address indicated. Name and Surname Job Title Mailing address (preferably company address) Telephone no. Address for invoice including NIP I confirm my participation in Application of IFRS training programme: o full programme or a part: o Module 1 o Module 2 o Module 3 o Module 4 o Module 5 o Module 6 in a location: o Warszawa o Poznań o Wrocław o Please issue an invoice for the whole programme (9,100 PLN + 23% VAT) o I would like to order training materials in English at additional cost (200 PLN + 23% VAT) I give my consent for an electronic invoice to be sent to: o yes ( ): Terms and conditions of taking part in Ernst & Young spółka z ograniczoną odpowiedzialnością Academy of Business sp.k. courses: In order to take part in the course, the above form must be filled out and sent via to: academyofbusiness@pl.ey.com. The payment for the course must be settled at least 5 business days prior to the commencement of the course. The payment should be settled through a bank transfer. Account details are as follows: HSBC Bank Polska account number (PLN): Terms and conditions of cancelling participation in Ernst & Young spółka z ograniczoną odpowiedzialnością Academy of Business sp.k. courses: It is possible to withdraw from the course upon receipt of a written resignation at least 7 days prior to the commencement of the course. If the deadline is missed, the participant must pay the full fee of the course. The cancelation of participation in the course does not result in refund of the payment. However, it is possible to replace the participant unable to attend. Please note that absence at the course training does not provide a basis for reimbursement for training. Ernst & Young spółka z ograniczoną odpowiedzialnością Academy of Business sp.k. reserves the right to cancel or reschedule the training. In accordance with art. Paragraph of the Act of 18 July 2002 on electronic services (Journal of Laws No. 144, item. 1204), I agree to receive information from Ernst & Young spółka z ograniczoną odpowiedzialnością Academy of Business sp.k., by to the above given , information regarding the course as well as information about other training products. I also agree to the processing of my personal data for purposes of obtaining information from Ernst & Young spółka z ograniczoną odpowiedzialnością Academy of Business sp.k., al. Armii Ludowej 26, Warsaw (according to the Law of Data Protection, Coll. Laws of 2002 No. 101, item. 926, as amended). At the same time I declare that I have been informed of my right to appeal an approval, which will result in the immediate termination of the sending of commercial information. I hereby declare that I have read and accept the above terms and conditions. Date and signature Company stamp EY. All rights reserved. Ernst & Young spółka z ograniczoną odpowiedzialnością Academy of Business s.k. al. Armii Ludowej Warszawa District Court for the City of Warsaw, Economic Dept. XII of the National Court Register; KRS: , NIP: