Ascendere Academy

Course Description: IAS 10 Events after the Reporting Period

IAS 10 is a crucial accounting standard that governs the treatment of events occurring after the reporting period in financial statements. This course offers a detailed examination of IAS 10, emphasizing the recognition and disclosure requirements for events that impact the financial position of an entity after the reporting period. Participants will explore various types of events, such as adjusting and non-adjusting events, and understand their implications on financial reporting.

Learning Objectives:

• Define the objective of IAS 10 and its scope concerning events occurring after the reporting period.
• Identify the types of events covered under IAS 10 and those excluded from its scope.
• Explain the distinction between adjusting and non-adjusting events, including criteria for recognition and their treatment in financial statements.
• Discuss the impact of adjusting events on the preparation and presentation of financial statements.
• Understand the requirements for recognizing adjusting events in financial statements, including their impact on the carrying amounts of assets and liabilities.
• Learn about the disclosure requirements for both adjusting and non-adjusting events, ensuring transparency and compliance with reporting standards.
• Explore the process of evaluating subsequent events to determine their significance and potential impact on the financial position of an entity.
• Analyze illustrative examples and case studies to deepen understanding and application of IAS 10 principles in real-world scenarios.

Target Audience:

• Accounting and finance professionals responsible for inventory accounting and financial reporting.
• Auditors and consultants seeking to enhance their understanding of Events after reporting date under
• IAS  10.
• Students and academics interested in gaining advanced knowledge of accounting standards related to inventories.

Prerequisites:

• Basic knowledge of accounting principles and financial statement preparation.
• Familiarity with inventory accounting concepts and terminology.

Description:

IAS  2 Inventories is a fundamental accounting standard that governs the treatment of inventories in financial statements. This course provides an in-depth analysis of IAS  2, focusing on the measurement of inventories at the lower of cost and net realisable value (NRV). Participants will explore the standard's requirements for determining inventory costs, including specific identification, FIFO, and weighted average cost methods. The course also covers the principles of expense recognition, write-downs to NRV, and disclosure requirements.

Learning Objectives:

Understand the Objective and Scope of IAS  2:

Define the objective of IAS  2 and its scope in terms of inventory types.

Identify the inventories excluded from the scope of IAS  2 and the circumstances in which IAS  2 does not apply to the measurement of inventories.

Comprehend the Fundamental Principle of IAS  2:

Explain the concept of stating inventories at the lower of cost and net realisable value (NRV).

Explore the Measurement of Inventories:

Describe the components of cost, including purchase costs, conversion costs, and other costs related to bringing inventories to their present location and condition.

Discuss the circumstances under which borrowing costs can be included in the cost of inventories.

Learn about Cost Formulas and Methods:

Understand the standard cost and retail methods for inventory measurement.

Differentiate between specific identification, FIFO, and weighted average cost formulas for inventory costing.

Examine Write-down to Net Realisable Value:

Define net realisable value (NRV) and the components used to calculate it.

Explain the accounting treatment for write-downs to NRV and the recognition of reversals.

Understand Expense Recognition and Disclosure:

Describe the expense recognition process for inventories sold, including cost-of-goods-sold and inventory losses.

Identify the required disclosures for inventories in financial statements, including accounting policies, carrying amounts, and write-downs.

Target Audience:

• Accountants and Auditors
• Financial Analysts and Finance Managers
• CFOs and Financial Executives
• Compliance and Regulatory Professionals
• Business Owners and Entrepreneurs in sectors with complex customer contracts

Prerequisites:

• Basic understanding of accounting principles
• Familiarity with financial statements
• Knowledge of general IFRS standards
• Interest in financial reporting and compliance
• Analytical and critical thinking skills