- IFRS consolidation - Accounting production: How to produce IFRS consolidated financial statements
- Financial statements and appendices - Balance sheet, income statement, cash flow statement, statement of changes in equity, ICOs, appendices
- Financial instruments and hedging tools - Learn about financial instruments and hedging tools (fair value hedge / cash flow hedge, hedging, credit derivatives, hybrid debt).
- IFRS - International Financial Reporting Standards (IFRS)
- Consolidation scope - Consolidation scope - First-time consolidation - Goodwill - Minority interests
Specialization
Target audience
- Financial managers and controllers
- Chartered accountants, statutory auditors
- Finance, consolidation and accounting managers
2 day
Prerequisites
It is recommended that you have a thorough understanding of the processes involved in preparing consolidated financial statements or that you have completed the training course “IFRS Consolidation Techniques—Principles and Methods” [FHCIFR].
Objectives
◗ Record foreign currency transactions in accordance with IFRS.
◗ Apply hedge accounting to foreign currency transactions.
◗ Calculate, track, and validate equity conversion reserves.
◗ Resolve issues related to currency conversion in the cash flow statement.
◗ Address situations of hyperinflation.
Training program
◗ Definitions and General Principles of IAS 21
– Functional currency and presentation currency
– Monetary and non-monetary items
– Transaction translation and consolidation translation
✔ EVALUATE | Quiz: Monetary or non-monetary items?
✔ APPLY | Case study: Accounting for foreign currency transactions
◗ Accounting for foreign currency securities
– Foreign exchange gains and losses on equity or debt instruments
– Net investment in a foreign entity
✔ APPLY | Case Study: Accounting for Financial Instruments Denominated in Foreign Currencies
◗ Analyze and process exchange rate differences on internal operations
– Intra-group settlements
– Dividend distributions and capital increases
✔ UNDERSTAND | Checklist for reconciling internal foreign-currency transactions
✔ APPLY | Case study: Dividends and internal profits in foreign currencies
◗ Covering foreign exchange transactions
– Hedge accounting: Fair Value Hedge (FVH) and CashFlow Hedge (CFH)
– Impacts on the income statement and OCI
✔ EVALUATE | Quiz: Cash Flow Hedge or Fair Value Hedge?
✔ APPLY | Case Study: Hedging a Purchase of Goods in Foreign Currency
◗ Calculate, monitor and validate the conversion reserve
– Translation of subsidiaries’ financial statements in foreign currencies
– Cases where the translation reserve is reclassified to net income
– Translation reserve and changes in the scope of consolidation
✔ APPLY | Practical examples: translation of financial statements, disposal of a foreign subsidiary
◗ Checking the impact on the cash flow statement
– Conversion rules based on the nature of transactions
– Balancing the conversion flow
✔ APPLY | Case study: conversion reserve and TFT impact
◗ Apply IAS 29 to hyperinflationary situations
– Principles of Indexed Accounting
– Conversion of Indexed Accounts to the Consolidation Currency
✔ APPLY | Step-by-Step Illustrated Example of IAS 29 Restatements
◗ Cover a net investment abroad (NIH)
Why choose this course?
Foreign currencies present numerous challenges when accounting for transactions in consolidation. A solid understanding of conversion rules and mechanisms enables you to manage the processes required to finalize the impacts resulting from the configuration of consolidation tools. This training course offers strategies for optimizing or auditing these impacts, both in shareholders’ equity and in the cash flow statement.
Teaching and assessment methods
Before the training: Submit your expectations via your online portal 15 days before the training begins and complete a self-assessment of your skills.
Teaching Methods: A variety of methods to cater to different learning styles, encourage active participation, and reinforce learning through experimentation and practice.
Educational materials: presentation materials, reference materials (summary sheets, tables, etc.), and other resources available in your account.
During the training: a mix of theoretical concepts and examples drawn from real-life cases. Participants are given the opportunity to engage in role-playing exercises. Numerous practical exercises allow participants to demonstrate their mastery of the skills as the training progresses.
Monitoring and evaluation: attendance sheet and certificate of completion. Immediate and post-training evaluations conducted using the LearnEval platform.
Price
2,250 EXCL. TAX
Testimonials
foreign currency transactions
foreign currency transactions
foreign currency transactions
Jonathan C.
Company
Training