IFRS for the Real Estate Sector

Our specialist instructors discuss the critical issues that go beyond mere number-crunching and explain, clearly and simply, the way the real estate sector conducts and shapes its accounting and reporting practices in accordance with IFRS Standards.

By reference to accepted accounting practices in the sector, delegates leave this course with practical knowledge of the wide spectrum of principle-based IFRS Standards that are applicable to the real estate sector. Participants will, for example, learn how to relate the standards on property, plant and equipment, leases, revenue, business combinations and investment property to leased or sold assets. The program also covers the treatment of investment projects, related borrowing costs and marketing, sales, development and construction expenditures, the appropriate basis for investment property valuation, and disclosure requirements and other issues that are unique to the real estate sector.

This valuable course answers questions such as:

• What are the accounting requirements for typical real estate lease, property, and investment property activities?
• What is required under IFRS 16 Leases when accounting by lessors and lessees?
• How are lease contracts analysed for accounting purposes?
• When are lease incentives, service costs and embedded derivatives recognized and how are they measured?
• How does IFRS 15 Revenue from Contracts with Customers impact on real estate transactions?
• How does IFRS 9 Financial Instruments impact on mortgages, traded debt, and other financing instruments used in the real estate market?

Learning Objectives

• Understand the basic principles of IFRS Standards
• Establish accounting policies where specific guidance does not exist
• Learn practical answers to typical real estate questions on leases, property, plant and equipment and investment property
• Be able to analyse lease contracts and accurately account for lease incentives, service costs and embedded derivatives
• Understand the new IFRS 15 Revenue model
• Understand the proposed lease standard form the lessor and lessee view
• Apply “best practices” and industry recommendations within the real estate sector

Who Should Attend

• Preparers, auditors and analysis in the real estate sector who need to understand the application of IFRS Standards.

Topics

• Overview and IFRS Conceptual Framework- General Principles and Standards
• IAS 1 Presentation of Financial Statements
• IAS 2 Inventories
• IAS 7 Statement of Cash Flows
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
• IAS 10 Events after the Reporting Period
• IAS 12 Income Taxes
• IAS 16 Property, Plant and Equipment
• IAS 20 Government Grants and Disclosure of Government Assistance
• IAS 23 Borrowing Costs
• IAS 24 Related Party Disclosures
• IAS 28 Investments in Associates and Joint Ventures
• IAS 34 Interim Financial Reporting
• IAS 36 Impairment of Assets
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets
• IAS 38 Intangible Assets
• IAS 40 Investment Property
• IFRS 1 First-time Adoption of International Financial Reporting Standards- Overview
• IFRS 2 Share-based Payment
• IFRS 3 Business Combinations
• IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
• IFRS 7 Financial Instruments: Disclosures
• IFRS 8 Operating Segments
• IFRS 9 Financial Instruments
• IFRS 10 Consolidated Financial Statements
• IFRS 11 Joint Arrangements
• IFRS 12 Disclosures of Interest in Other Entities
• IFRS 13 Fair Value Measurement
• IFRS 15 Revenue from Contracts with Customers
• IFRS 16 Leases
• Review of model IFRS Financial Statements
• Real-world IFRS Financial Statements