International Financial Reporting Standards

Users of financial statements have always demanded transparency in financial reporting and disclosures. However, the willingness and need for better disclosure practices have intensified only in recent times. Globalization has helped Indian Companies raise funds from offshore capital markets. This has required Indian companies, desirous of raising funds, to follow the Generally Accepted Accounting Principles (GAAP) of the investing country. The different disclosure requirements for listing purposes have hindered the free flow of capital. This has also made comparison of financial statements across the globe impossible. A movement was initiated by an International body called International Organization of Securities Commissions (IOSCO), to harmonize diverse disclosure practices followed in different countries. The capital market regulators have now agreed to accept IFRS (International Financial Reporting Standards) compliant financial statements as admissible for raising capital. This would ease free flow of capital and reduce costs of raising capital in foreign currencies.
The policy makers in India have also realized the need to follow IFRS and it is expected that a large number of Indian companies would be required to follow IFRS from 2011. This poses a great challenge to the preparers of financial statements and also to the auditors. There is an urgent need to understand the nuances in IFRS implementations.

Programme Objectives
This programme provides an in-depth analysis of the accounting and disclosure requirements under IFRS. The programme presents the information needed to navigate complex issues surrounding the recognition and measurement of financial elements under both IFRS, an area closely scrutinized by regulators such as the SEC in the US and the Financial Reporting Review Panel in the UK.

The programme always keeps the Indian financial reporting requirements (Indian GAAP) in perspective and explains the differences in Indian GAAP and IFRS. This helps the participants to appreciate the major areas of difference and thus provides necessary information and knowhow to restate Indian Financial Statements as per IFRS.


Programme Structure and Contents

The IFRS programme will be delivered in two independent modules- Basic and Advanced. The basic module will cover in details the areas of differences between Indian GAAP and IFRS with respect to major line items in the financial statements. The advanced module will lay more emphasis on reconciliation and compliance issues.

The duration of basic module is five days and that of advanced module three days.

Contents of the Basic Module [ 5-day module]

1. Issues in first time adoption of IFRS.
2. Presentation of financial statements
3. IFRS provisions for select items:
a. Accounting policies, estimates, and errors
b. Income Recognition
c. Accounting for PPE
d. Accounting for intangible assets, Impairment
e. Lease accounting
f. Income recognition
g. Accounting for liabilities
h. Tax accounting
i. Accounting for Foreign exchange Transactions
j. Business combination
k. Consolidated financial statements and disposal of subsidiaries
l. Segment reporting
m. Investment Property
n. EPS
o. Employee Benefits and Pension liabilities
p. Share based payments
q. Introduction to Financial instruments
4. What if situations
5. Key IFRS issues in select industries
6. Capstone exercise: Restatement of Financial Statements- from Indian GAAP to IFRS