IFRS: Individual (separate) financial statements I

Syllabus

1. Application of the IFRS in the Slovak Republic. IFRS Foundation and its bodies (IASB, IFRS IC, SAC). Structure of the IFRS (IFRS, IAS, SIC, IFRIC) and their approval for the use in the EU. Conceptual framework for financial reporting: general principles (faithful presentation, usefulness and relevance of information). Definition, identification, and the recognition of the elements of the financial statements (assets, liabilities, equity, expenses, income). Need for distinction between equity and liabilities. Structure of the complete set of the financial statements in accordance with IAS 1. 2. Balance sheet, its structure, and the distinction of the current and non-current items. Statement of comprehensive income, recognition of profit or loss and other comprehensive income. Presentation of the operating expenses in accordance with their nature and their function. Statement of changes in equity. Cash flow statement. 3. Measurement bases, determination of fair value in accordance with IFRS 13, use of discounted cash-flows, market values and acquisition costs. Accounting for borrowing costs in accordance with IAS 23. Impact on the accounting treatment on accounting ratios. 4. Comparability of accounting information. Accounting policy and its changes in accordance with the IAS 8. Use of estimates and presentation of their changes by the entity. Comparison of accounting treatment of changes of policies and estimates. Information about the changes to presented in the notes and statement of changes in equity. Correction of errors. 5. Accounting for plants, property, and equipment in accordance with IAS 16: Scope of the standard and determination of costs for the first-time measurement (including the capitalisation of the borrowing costs, discounting of delayed payments, non-monetary transactions, acquisition funded by grants and provisions for decommissioning). 6. Accounting for plants, property, and equipment in accordance with IAS 16: Subsequent measurement (cost model and revaluation model). Impairment allowances in accordance with the IAS 36. Concept of cash-generating unit. Accounting for reversal of impairment. Accounting for the disposal of plant, property, and equipment. Schedules for changes of plants, property, and equipment in the notes to financial statements. Impact on the accounting treatment on accounting ratios. 7. Accounting for intangible assets in accordance with IAS 38. Scope of the standard, similarities with IAS 16 (first time and subsequent measurement). Distinctions between IAS 16 and IAS 38: capitalisation of expenditures for in-house research and development, limited use of both the residual and the fair values. Schedules for changes of plants, property, and equipment in the notes to financial statements. Impact on the accounting treatment on accounting ratios. 8. Accounting for inventories in accordance with IAS 2. Scope of the standard, inventories held at fair value and net realizable value through profit or loss. Determination of the acquisition cost and its similarities with procedures required by the IAS 16. Impact on the accounting treatment on accounting ratios. 9. Accounting for leases in accordance with the IFRS 16: scope of the standard, economic rationale of leases, general provisions, and accounting for the financial and operating lease by the lessor. Accounting for sale and the leaseback transactions. 10. Accounting for leases in accordance with the IFRS 16: accounting by leasee. Use of incremental borrowing rate. Exemptions for the short-term leases and leases with low value. Schedules for changes of rights to leased asset, other assets arising from leases and lease liabilities in the notes to financial statements. Impact on the accounting treatment on accounting ratios. 11. Accounting for provisions, contingent liabilities, and contingent assets in accordance with the IAS 37. Scope of the standard, economic rationale for the recognition of provisions in balance-sheet and their changes in statement of comprehensive income. Impact on the accounting treatment on accounting ratios. 12. Accounting for contracts with customers in accordance with IFRS 15: Scope of the standard and five steps for determination of the contract with a customer. Determination of the performance obligation. Determination of the consideration and its allocation to various performance obligations. Contracts realized at a point in time and over the time. Determination of the stage of completion. 13. Accounting for contracts with customers in accordance with the IFRS 15: distinction between principal and agents, accounting for consignment contracts, repurchase agreements and "bill and hold" agreements. Combination and the separation of contracts. Impact on the accounting treatment on accounting ratios.