International Financial Reporting Standards for Compensation Professionals (T7)

1. Introduction to the IASB and the IFRS

• The objectives of the IASB
• The structure of the standard setting body and sub-committees
• The conceptual framework
• The IAS and IFRS standards

2. Objectives of Financial Reporting

• Relationship between the conceptual framework and stakeholders
• Providing information to the stakeholders of the organization
• Who are the stakeholders?

3. Financial Statements

• Content of the key financial statements
  • Statement of financial position
  • Statement of income
  • Statement of other comprehensive income
  • Statement of cash flows
  • Notes accompanying the accounts - the true source of information

4. IAS 19 Purpose and Scope

• Concept of accrual accounting
• Basic principle that the cost of providing employee benefits should be recognized in the period in which the benefit is earned by the employee, rather than when it is paid or payable
• How is this done?

5. IAS 19 Short-Term Employee Benefits

• Definition
• Types of short-term benefit
• Benefits that accrue
• Benefits that do not accrue
• Profit sharing and bonus plans
• Accounting treatment for short-term benefits
• Practical examples of treatments

6. IAS 19 Types of Post Employment Benefit Plans

• IAS 19 Features of a defined benefit plan
  • Calculating the liability of a defined benefit plan
  • Accounting treatment of a defined contribution plan
  • Practical examples of treatment
• IAS 19 Features of a defined benefit plan
  • Calculating the liability of a defined contribution plan
  • Methods of calculation including the reliance on actuarial and financial assumptions
  • Discounted cash flow techniques. Issues to be addressed, such as what is the appropriate discount rate

7. IAS 19 Other long-term benefits

• Accounting treatment of other long-term benefits
• Benefits that are immediately expensed
• Benefits that are accrued

8. IAS 19 Termination Benefits

• Categories of benefits that qualify and the conditions that determine these categories
• Determination of the conditions for a plan
• Treatment of the benefits provision/payments