IFRS Practical Training

This IFRS Practical Training for Telecommunication in Dubai examines international financial reporting issues in detail and their effect on telecommunication entities. Our specialist instructor discuss the critical issues that go beyond mere number-crunching and explain, simply and clearly, the way that telecommunication entities conduct and shape their accounting and reporting practices.

The delegates will leave this course with practical knowledge of the principle-based IFRSs that are applicable to the telecommunications industry. Participants will, for example, learn how to relate the standards on intangible assets and property, plant and equipment to network and telecommunication, understand how cash-generating units are defined in the telecom sector, and be able to apply the revenue recognition principles to prepaid and postpaid sales, multiple element arrangements, and other activities that are unique to the telecom industry.

Case studies and financial statements are used throughout the program to promote discussion and illustrate the real-world application of financial standards to companies in the telecommunications sector.

Course Outline

Property, Plant and Equipment (IAS 16)

  • Construction cost of network – financing cost, site selection costs, network planning, dismantling and restoration costs
  • Component approach, start of depreciation, depreciation method and period

IFRS 15 — Revenue from Contracts with Customers

  • The 5 step model framework
      • Identify the contract(s) with a customer
      • Identify the performance obligations in the contract
      • Determine the transaction price
      • Allocate the transaction price to the performance obligations in the contract
      • Recognize revenue when (or as) the entity satisfies a performance obligation.
  • Contract costs
  • Presentation in financial statements and disclosure
  • Significant Challenges in Revenue Recognition
  • Allocation of revenue to different goods and services

 Intangible Assets (IAS 38)

  • (IAS 38)
  • Recognition criteria
  • Measurement issues
  • Internally developed intangible assets
  • Research and development costs
  • Intangible assets acquired in a business combination
  • Amortization versus impairment

Financial Instruments (IFRS 9)

  • Understanding financial instruments
  • Recognitions
  • Classification
  • Treatment and disclosures

Leases (IAS 17)

  • IAS 17 (Including Exposure Draft), IFRS 16
  • Lease classification
  • Leases for property
  • Non-property leases

Impairment of Assets (IAS 36)

  • Impairment indicators in the telecom industry
  • Defining cash generating units
  • Calculating recoverable amounts

Liabilities, Provisions and Contingencies

  • IAS 10, 12, 20, 37
  • Recognition criteria for provisions and contingencies
  • Constructive and legal obligations
  • Discounting deferred payments
  • Onerous contracts
  • Events after the reporting period
  • Deferred tax provisions and assets
  • Government grants and assistance

Inventories (IAS 2)

  • Valuation of handsets
  • Inventory versus marketing costs

Financial Statement Presentation

  • IAS 1, 7, 34; IFRS 5
  • Components of financial statements
  • Classification issues for statement of financial position
  • Non-current assets held for sale and discontinued operations
  • Presentation in profit or loss and comprehensive income
  • Statement of changes in equity
  • Statements of cash flow 

Measuring Financial Performance

  • IAS 8, 24, 33; IFRS 2, IFRS 13
  • Accounting policies, accounting estimates and errors
  • Earnings per share
  • Related party transactions

Training Methodology

  • Group live instruction with interactive participation encouraged
  • Identification of the critical issues affecting financial reporting
  • Presentation and discussion of financial statement disclosures
  • All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials