IFRS - Workshops. Application of International Financial Reporting Standards

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s Application of International Financial Reporting Standards Kontakt Warszawa Aleksandra Trych tel. +48 505 171 636 aleksandra.trych@pl.ey.

1 s Application of International Financial Reporting Standards Kontakt Warszawa Aleksandra Trych tel Poznań, Kraków Katarzyna Pudelska tel Wrocław Natalia Medyńska tel

2 Objectives and advantages To apply advanced accounting principles and techniques in a practical context. To evaluate and apply various international standards. To analyse, interpret and report on financial statements and related information to different user groups. To ensure that preparers and users of financial statements are up-to-date with current amendments and requirements of IFRS. About Workshop 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 15. Comprehensive course materials provided Interactive training based on exercise solving and discussion of real-life scenarios Progress tests throughout the programme to assess the knowledge of participants Diploma awarded upon completion of the programme and passing of the final exam 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. An hot line is available to facilitate contact with the tutor if any problems or questions regarding homework assignments should arise. Each two-day module costs 1700 zł + 23% VAT. Price special offer Option zł + 23% VAT/per person The course combines lectures, question and answer sessions, practical exercises and examples Option zł + 23% VAT/per person Addition, participants receive online tests to prepare for the final exam Price Option zł +23% VAT/per person Addition, participants receive online tests to prepare for the final exam, contact with the tutor and access to 10 e-learning courses on the platform: ssf It is possible to participate in selected modules only.

3 Who is it 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. "In my several-year career, it was the best organized and conducted training. Danuta Gorzkowska Kierownik Biura Controllingu Amica Wronki S.A. 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. 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.

4 PROGRAMME

5 PROGRAMME module I Introduction to International Financial Reporting Standards (IFRS) Basic historical background to financial reporting and accounting internationally. Structure of the International Accounting Standards Board including current developments and discussion of the work of the International Financial Reporting Interpretations Committee. Role of International Financial Reporting Standards in European Union countries and the United States. The Standard Setting process. IFRS Conceptual Framework with emphasis on basic accounting concepts and the definitions of assets, liabilities, revenue, costs and equity. Presentation of Financial Statements The current format of financial statements. The operating cycle relevant to specific business activities and the classification of assets and liabilities into current/non current. 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. Statement of changes in equity. Interim reporting. Inventories Measurement at recognition: purchase price, cost of conversion, other costs included in the valuation of inventory. Net realizable value definition and practical examples of valuation. Statement of Cash Flows 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. Definition of cash and cash equivalents; examples of items classified as both of the above. The indirect and direct methods of constructing the cash flow statement. Property, Plant and Equipment 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). Definition of depreciable amount; various depreciation methods: straight-line, diminishing balance, sum of digits, units of production. Component accounting. Measurement after recognition: cost model and revaluation model. Accounting for revaluations and disposals of non current assets. Changes in depreciation methods and revisions of useful life. Presentation and disclosure of non current assets. Borrowing Costs (loans, credits) Definition of borrowing costs Accounting treatment of borrowing costs under the revised IAS 23 Key issues related to capitalization: qualifying assets, capitalization period and capitalization rate. Government Grants and Disclosure of Government Assistance Grants related to income and grants related to assets. Discussion of the two methods of accounting for government grants recommended under IAS 20. Investment Properties Definition and measurement at recognition of investment properties. Criteria for classification as investment property; reclassification rules. 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 Defining the period during which events after the reporting date arise. Adjusting and non-adjusting events practical examples and accounting treatment. Accounting Policies, Changes in Accounting Estimates and Errors Hierarchy of sources for choosing accounting policies. Definition of past period errors and the accounting treatment applied to correction of errors. Accounting estimates and their changes.

6 Program moduł II PROGRAMME module II IFRS 15 Revenue from Contracts with Customers Scope of IFRS 15 Identifying the contract and modifications Identifying performance obligations: distinct goods or services, promises in contracts with customers, principal vs. agent. Determining the transaction price: Variable consideration, significant financing component, consideration payable to a customer. Allocating the transaction price to performance obligations Satisfaction of performance obligations: over time or at a point in time Incremental costs of obtaining a contract Effective date and transition Disclosures Provisions, Contingent Liabilities and Contingent Assets Definitions of provisions, contingent liabilities and contingent assets Obligating events: legal and constructive obligations Provisions for future operating losses and onerous contracts. Measurement rules: defining the expenditure required to settle the obligation, discounting and unwinding of the discount. Conditions for recognizing provisions for restructuring expenses. Discussion of criteria for recognition in the statement of financial position or in the notes to the financial statements. Introduction to Group Accounting Methods of accounting for investments in individual company accounts and their impact on consolidated financial statements. When to use the various methods of consolidation. 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 Step by step guide to the preparation of the consolidated statement of financial position based on discussion of examples. Goodwill and gain on bargain purchase. Impairment of goodwill Revaluation of the assets and liabilities of a subsidiary to fair value. Non-controlling interests in the statement of financial position. 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. Step by step guide to the preparation of the consolidated statement of comprehensive income based on discussion of examples. Eliminating intra-group transactions from the perspective of the statement of comprehensive income (sales, cost of sales, dividends). The impact of transactions on non-controlling interests. Related Party Transactions Definition of related parties and the need to disclose transactions and balances with related parties. Types of transactions requiring disclosure; discussion of required level of detail of disclosures.

7 Program moduł III PROGRAMME module III Deferred Taxation Identifying taxable and deductible temporary differences. Tax base of assets and liabilities. Accounting for deferred tax assets and liabilities using the liability method. Measurement and presentation of deferred tax assets. Deferred tax balances. Deferred taxation in consolidated financial statements. Impairment of Assets Identifying external and internal impairment indicators. Measuring recoverable amount and identifying situations in which an impairment loss needs to be recorded. Value in use under IAS 36 and how to calculate it. Identifying cash generating units (CGUs); allocating impairment losses to specific assets in a CGU. Reversal of impairment losses. Leases Leasing agreements in the light of the substance over form principle. Categories of leases and their impact on the financial statements of the lessor and the lessee. Step by step guide to identifying whether a lease is finance or operating and the accounting entries required. Methods of splitting payments under finance lease into interest and capital components including the sum of the digits and the actuarial methods. Accounting for sale and leaseback transactions. Disclosure requirements. Intangible Assets Discussion of definitions. Conditions for recognition of intangible assets: identifiability, control, future economic benefits, reliable measurement. Intangible assets identified in business combinations. Treatment of research and development costs. Treatment of goodwill First time adoption of international standards The scope of IFRS 1 definition of entities applying international standards for the first time 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.

8 Program moduł IV PROGRAMME module IV Earnings per Share Methods of calculating basic and diluted earnings per share. 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. Treatment of potential ordinary shares: options, convertible preference shares, convertible loans and convertible debentures. Determining the order in which potential dilutive factors are included in the calculation of the weighted average number of shares. Earnings per share for continuing operations. Segment Reporting The necessity for segment reporting. Definition of operating segment and Chief Operating Decision Maker. Discussion on the criteria for presentation of separate segments. Inter-segment transactions. Discussion on the changes required by IFRS 8: Operating segments. Non-current Assets Held for Sale and Discontinued Operations Non-current assets held for sale classification criteria. Measurement of non-current assets held for sale at the date of classification. Accounting for disposal groups. Discussion of when discontinued operations arise and the disclosure requirements in IFRS 5. Accounting for discontinued operations in comparatives. The Equity Method Accounting for associates in the standalone and consolidated financial statements. 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. Elimination of unrealized profits from transactions between investor and associate. Goodwill and gain on bargain purchase. IFRS 11 Joint Arrangements Factors that influence the classification of joint arrangements: legal form, contractual arrangements and other. Accounting for joint operations and joint ventures Numerical examples illustrating the principles Business combinations Discussion of how the revised FRS 3 has changed consolidation/group accounting. 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. Deferred and contingent consideration. 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 The purpose and scope of disclosures Disclosures required for significant interests in subsidiaries, joint arrangements and associates Other disclosures Changes in Foreign Exchange Rates and Consolidation of Foreign Subsidiaries Functional and presentation currencies. Criteria considered in selecting the functional currency. Accounting for foreign currency transactions on initial recognition, settlement and balance sheet dates. Recognition of exchange differences. Translating the results and financial position of foreign subsidiaries included in the consolidated accounts. Rules for applying foreign exchange rates to assets, liabilities, equity, income and costs. Recognition of exchange differences in consolidated financial statements: share of group and non-controlling interests. Elimination of balances and transactions with a foreign entity. Translation of goodwill. Financial Reporting in Hyperinflationary Economies Criteria considered in assessing whether hyperinflation exists. Financial statement items subject to adjustments due to hyperinflation.

9 Program moduł V PROGRAMME module V Financial Instruments How the standards on financial instruments have evolved: IAS 32, IAS 39, IFRS 7 and IFRS 9 Scope of standards Definitions of financial assets, liabilities and equity Classification of financial instruments under IFRS 9: financial assets at fair value through profit and loss, other comprehensive income and amortised cost Fair value measurement Amortised cost method using the effective interest rate Impairment of financial assets: expected losses model under IFRS 9 Impairment of financial assets at amortised cost Impairment of financial assets at fair value Introduction to accounting for derivatives: presentation of the principles of forward, futures, options, swap transactions Embedded derivatives Hedge accounting Disclosures Group Statements of Cash Flows 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. 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 The impact of piecemeal acquisitions on goodwill calculation. 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. Consolidation of groups, in which control is exercised indirectly vertical and mixed groups. Piecemeal acquisition under IFRS 10. The issues with acquiring and losing control. Group reorganisations including discussion on transactions between entities under common control

Program moduł VI PROGRAMME module VI Employee benefits Jubilee and retirement bonuses. Holiday pay accruals. The operation of pension schemes. Defined benefit and defined contribution pension schemes.

10 Program moduł VI PROGRAMME module VI Employee benefits Jubilee and retirement bonuses. Holiday pay accruals. The operation of pension schemes. Defined benefit and defined contribution pension schemes. Disclosure requirements for employee benefits. IFRS 13 Fair value measurement Definition of fair value and related terms. Principal market and the most advantageous market. Transaction costs. Highest and best use. Valuation techniques. Revision of the most important issues in order to prepare for the final examination. How to apply? If you are interested in the IFRS training programme please complete application by our website at least one week before the start of the course. Share Based Payment Equity-settled and cash-settled share based payments Definition of the grant date, vesting period and vesting date. Accounting for market and non-market vesting conditions. Impact of modification, cancellation and cancellation with compensation on accounting for equity-settled arrangements. Accounting for equity-settled transactions in situations, when the entity or counterparty have the choice of whether to settle in equity or cash. Information If you would like to receive more detailed information, please call or us at: 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.

Trainers profiles Jarosław Olszewski FCCA, CFA, CIA Senior Manager Michał Błeszyński FCCA, CIA Manager Jarek is graduate of the Poznań University of Economics.

He is also CFA Charter Holder and CIA title holder. In 1996 Jarek joined EY. He has got several years of training experience. He specialises in International Financial Reporting Standards.

11 Trainers profiles Jarosław Olszewski FCCA, CFA, CIA Senior Manager Michał Błeszyński FCCA, CIA Manager Jarek is graduate of the Poznań University of Economics. He is a Member of The Association of Chartered Certified Accountants (UK) since Since 2002 he is eligible to practise as Chartered Certified Accountant in UK and as Biegły Rewident in Poland. He is also CFA Charter Holder and CIA title holder. In 1996 Jarek joined EY. He has got several years of training experience. He specialises in International Financial Reporting Standards. He is responsible for development and delivery of financial, inhouse courses tailored to specific needs of diversified portfolio of clients. Jarek is Technical Director of postgraduate studies conducted in cooperation with Warsaw School of Economics In a member of the PIBR Examination Commission. Michał is a graduate of the Wrocław University of Technology, Faculty of Computer Science and Management. He is a CIA (Certified Internal Auditor), ACCA (Association of Chartered Certified Accountants) member, and Polish Certified Auditor (biegły rewident). For over 5 years he has been working in the Audit department in Ernst & Young, he was responsible for auditing production companies and capital groups operating in the real estate area. He did educate new members of the Ernst& Young team on the external audit. Since 2008 he has been working as a trainer in Ernst & Young Academy of Business, where he specializes in teaching courses on IFRS (International Financial Reporting Standards), finance for non-finance managers, managerial accounting and preparatory courses for CIA and ACCA exams. Magdalena Burzyńska ACCA Senior Magdalena graduated in 1999 from the Warsaw School of Economics receiving the high score. Her first major was Finances and Banking and the second one was International Economic and Political Relations. Magdalena is a member of Association of Chartered Certified Accountants (ACCA) since Before joining Ernst & Young Academy of Business Magdalena used to work as a financial controller in international companies in FMCG sector, engineering and construction industry. She holds a vivid experience in financial management in international companies, preparation of financial statements in accordance with International Financial Reporting Standards (IFRS), budgeting, cost control, management accounting and internal reporting which was gained during 6 years while working in financial departments of many companies.

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

Objectives and advantages. u To analyse, interpret and report on financial statements and related information to different user groups. IFRS Workshops Application of International Financial Reporting Standards Client Relations Officer Warszawa Aleksandra Trych tel. +48 505 171 636 aleksandra.trych@pl.ey.com Poznań Katarzyna Pudelska tel.