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SGV PFRS

Training Solutions

A member firm of Ernst & Young Global Limited

2015-2016

About SGV PFRS Training Solutions

SGV Philippine Financial Reporting Standards (PFRS) Training Solutions are

developed by utilizing the real life experience and insights our people gain from

engaging in a wide range of business activities. This hands–on knowledge is

transferred in the classroom, where through a combination of lecture sessions,

discussions, group exercises and case studies, we put theory to practice.

Our aim is not only to provide participants with a holistic perspective of PFRS,

but more importantly, to empower them with the ability to practically apply their

knowledge in their work environment.

Our instructors are professionals with many years of practical PFRS experience in

a multitude of industries.

We do not only conduct numerous “open” courses on a variety of PFRS topics for a

diverse audience; we also regularly undertake customized “in-house” training

engagements for our clients.

To find out more, talk to us about your training needs.

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The year 2005 saw the biggest change in the Philippines’ financial reporting framework. This was the year when we shifted from the former Philippine Generally Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS), which were renamed as Philippine Financial Reporting Standards (PFRS).

The changes did not stop after the 2005 adoption. Over the past ten years, there have been continuous changes, revisions, amendments and enhancements to IFRS. The Philippines has kept up with the changes and as a result, our financial reporting framework is still converged with IFRS, except for the deferral of IFRIC 15, Agreements for the Construction of Real Estate.

The convergence effort continues as we are faced with the prospect of adopting the new IFRS 15, Revenue from Contracts with Customers – the standard that will supersede virtually all revenue recognition requirements in IFRS – in 2017, and the completed version of IFRS 9, Financial Instruments, in 2018. We are also expecting major changes in the future with the finalization of the amendments on IFRS for Small and Medium-sized Entities (SMEs) and International Accounting Standards (IAS) 17, Leases, and the new standard on Insurance Contracts, which will replace IFRS 4.

Maintaining this convergence at all times is critical for our companies (both public and private) as they strive to retain their competitive edge and remain at par with their international counterparts. It is also critical for our local stock market, as it enhances the comparability of our listed companies’ financial statements with those of companies around the world.

The constant changes in the financial reporting landscape could lead to a gap between the current knowledge and skills of our people and the requirements of the market to implement these changes effectively. A way to bridge this gap is to ensure that our people are always updated and well-trained, in order for them to meet these challenges head on.

We in SGV are committed to providing quality training courses. Throughout the years, we have been constantly offering various PFRS training courses to local business communities, clients and regulators, and we will continue to do so.

We are delighted to share with you our training curriculum for 1 June 2015 to 31 May 2016. We look forward to seeing you in these training courses, and collaborating with you in coming up with a more customized training curriculum to meet your specific needs.

Josephine Adrienne A. Abarca Partner Head, Accounting Standards Group

Introduction

3

1. PFRS: Changes in 2015 and Beyond 6

2. Introduction to the New Revenue Recognition Standard 8

3. Financial Instruments 10

3.1 Accounting for Financial Instruments 11

3.2 Derivatives and Hedge Accounting 12

3.3 Introduction to Accounting for Financial Instruments under

IFRS 9 14

3.4 Implementing the New IFRS 9 Expected Credit Loss Model for

Banks 15

4. PFRS 13, Fair Value Measurement 19

4.1 An Intensive Training on PFRS 13 20

4.2 PFRS 13, Fair Value Measurement, for Banks 22

5. Key Aspects of Consolidation 23

6. PFRS for Small and Medium-Sized Entities (SMEs) 26

i 4 39

Contents

7. Accounting for Non-accountants 28

8. PFRS Series 30

8.1 Accounting for Property, Plant and Equipment and Investment

Properties 31

8.2 Accounting for Income Taxes 31

8.3 Group Accounts: PFRS 10, 11 and 12 32

8.4 Philippine Accounting Standards (PAS) 19,

Employee Benefits (Revised) 33

8.5 Impairment of Assets 33

8.6 A Workshop on the Preparation of the Statement of Cash Flows 34

8.7 A Workshop on Segment Reporting 35

8.8 Related Party Transactions and Disclosures 35

8.9 A Workshop on the Preparation of Interim Financial Statements 36

PFRS on Demand 37

Schedule of Trainings 38

5

6 33

Outline

6

PFRS: Changes in 2015

and Beyond 1

► New and amended standards effective for 31 December 2015 year-end

► New and amended standards effective subsequent to 31 December 2015 year-end

► Updates on major IFRS projects

► Clarification of issues and answers to frequently asked questions

► Tax implications of the new and amended standards effective for 31 December 2015 year-end

► Other topics with financial reporting implications, such as latest issuances from the Securities and Exchange Commission (SEC)

Outline

6 7

Chief accountants, accounting managers, financial

controllers and finance directors who are responsible for

preparing and analyzing financial statements under PFRS

Those who would like to gain a more in-depth understanding

of changes to PFRS

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Financial markets demand consistency in accounting practices. The implementation of IFRS, locally adopted as PFRS, is key to increasing the transparency and comparability of financial information and further enhancing the efficiency of capital markets.

Because the standards are principles-based, they require a deep knowledge of the underlying concepts, as well as the application of professional judgment.

This two-day seminar will help participants understand key developments in PFRS and will focus on the implications of these changes. It will help participants put new and revised PFRS accounting principles into practice and determine their impact on PFRS financial statements.

IFRS 15, Revenue from Contracts with Customers, the standard that will replace virtually all revenue recognition requirements in IFRS; the provisions of the final version of IFRS 9, Financial Instruments; the recently issued Annual Improvements and Exposure Drafts; and their impact will be discussed and analyzed through practical examples. Answers to frequently asked questions on selected standards will also be covered during this training course.

Moreover, the seminar will cover the possible tax implications of these changes as well as relevant issuances of the SEC.

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Introduction to the New Revenue Recognition 2

Standard

8

Outline

► Background of the revised

revenue recognition project

► An overview of the provisions

of IFRS 15

► Scope

► The five-step model

► Contract costs

► Other application guidance

► Disclosure requirements

► Effective date and transition

► Updates on the discussions of the Transition Resource Group for Revenue Recognition

► Challenges and Potential Issues in

Adopting IFRS 15

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Chief accountants, accounting managers, financial controllers and finance

directors who are responsible for preparing and analyzing financial

statements under PFRS

Managers and finance professionals in the following functions:

Finance and treasury operations

Corporate planning

Taxation

Business operations and support

Those who would like to gain an understanding of the new revenue

recognition standard and its potential impact

on the operations of an entity

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9

This half-day seminar provides an overview of the provisions of IFRS 15,

particularly the five-step revenue recognition model. It also highlights the

differences between IFRS 15 and the current revenue standards as well as the

challenges and potential issues upon its adoption.

On 28 May 2014, the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board issued their joint revenue recognition standard, IFRS 15 and ASC 606, respectively, which replaces existing IFRS and US GAAP requirements for revenue recognition. This standard applies to all revenue contracts and also provides a model for the recognition and measurement of sales of some non-financial assets (e.g., disposals of property, plant and equipment). IFRS 15 is a significant change from the current IFRS on revenue.

Although it provides application guidance, entities will need to exercise judgment in applying its requirements, as the use of estimates is more extensive under this new standard. The potential changes to revenue recognition for some entities may be significant so it is important for entities to start assessing the impact immediately. With the mandatory application less than two years away (mandatory effective date is 1 January 2017), early preparation is key to a successful implementation of the new standard.

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3 Financial Instruments

10

These are training courses on the following accounting standards on financial instruments:

► PAS 32, Financial Instruments: Presentation

► PAS 39, Financial Instruments: Recognition and Measurement

► PFRS 7, Financial Instruments: Disclosures

► PFRS 9, Financial Instruments

These training courses range from an introduction of their basic concepts to more intensive training courses ultimately geared at helping companies understand the implications, potential solutions and process requirements of these standards.

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Accounting for Financial

Instruments is one of the most

complex areas in our local financial

reporting framework. It affects

various entities and various

accounts in an entity’s balance

sheet and income statement.

This one-day course aims to

discuss the key concepts,

measurement, presentation and

disclosure requirements for

financial instruments.

Accounting for Financial Instruments 3.1

Outline

► Introduction and key definitions

► Presentation: Debt vs. Equity

► Classification of financial assets and liabilities

► Categories of financial assets and liabilities

► Fair value option

► Reclassification

► Measurement

► Initial measurement

► Subsequent measurement

► Recognition and derecognition

► Initial recognition

► Derecognition of financial assets

► Derecognition of financial liabilities

► Offsetting financial assets and

liabilities

► Impairment of financial assets

► Disclosures

► IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments W

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Chief accountants,

accounting managers,

financial controllers and

finance directors who are

responsible for preparing

and analyzing financial

statements under PFRS

Those who would like to gain

a more in-depth

understanding of accounting

for financial instruments

12

This one-day course aims to provide

participants with the basic concepts on

how derivatives work, and the relevant

accounting principles and treatment

under PAS 39.

The seminar will also cover the

disclosure requirements for derivative

transactions under PFRS 7.

An overview of the changes to the

hedge accounting rules under PFRS 9,

the accounting standard that will

eventually replace PAS 39, will also be

covered.

3.2 Derivatives and

Hedge Accounting

Outline

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I. Overview of PAS 32, PAS 39 and PFRS 7

II. Derivatives: Basic Concepts

A. Introduction to derivatives

► Definition

► Characteristics of derivatives under PAS 39

► Why companies enter

into derivatives

► Types of derivative

instruments

► Exchange-traded versus

over-the-counter

B. Forwards and futures

► Introductory concepts

► Difference between

forwards and futures

► Mechanics of forward

contracts

C. Swaps


► Mechanics of interest

rate swaps

► Mechanics of cross

currency swaps

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D. Options


► Mechanics of options

E. Embedded derivatives

► Definition and examples

► Bifurcation and accounting rules under PAS 39

III. Hedge and Non-Hedge Accounting Treatment for Derivatives

A. Default accounting treatment for derivatives

B. Hedge accounting under PAS 39

► Definitions

► Qualifying instruments

► Hedge accounting

requirements

► Hedge effectiveness

testing

► Types of hedge

relationships (fair value and cash flow hedges)

► Discontinuing hedge

accounting

► Practical issues


IV. Overview of Hedge Accounting under PFRS 9

Chief accountants, accounting managers, financial controllers and

finance directors who are responsible for preparing and analyzing

financial statements under PFRS

Those who would like to gain a more in-depth understanding

of derivatives and hedge accounting

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► IAS 39 Replacement Project

► Classification and measurement rules

► Financial assets

► Financial liabilities

► The new hedge accounting model

► The expected credit loss model

► Effective date and transition


► Challenges and potential issues in adopting IFRS 9

This is a half-day course that aims to discuss and provide participants with the

underlying concepts and principles of IFRS 9 and provide illustrative examples

of its application.

Chief accountants, accounting managers, financial controllers and finance

directors who are responsible for preparing and analyzing financial statements

under PFRS

Internal auditors, business development teams and other accounting

professionals who would like to know how the final version of IFRS 9 will impact

future transactions and accounting for financial instruments

Those who would like to acquire knowledge of the underlying concepts and

principles of IFRS 9

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In July 2014, the final version of IFRS 9 was issued. IFRS 9 (2014)reflects all phases of the financial instruments project and replaces IAS 39, Financial Instruments: Recognition and Measurement, and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early application permitted. Retrospective application is required, but restating comparative information is not compulsory.

Outline

under IFRS 9 for Financial Instruments

3.3 Introduction to Accounting Implementing the New

Loss Model for Banks IFRS 9 Expected Credit

3.4 A one-day program designed to provide participants with an understanding of the concepts and principles of the new expected credit loss model under IFRS 9 and the relevant regulatory requirements, including a high-level discussion of credit risk modelling.

The 2008 financial crisis exposed the “too little, too late” weakness of the “incurred loss” model provisioning requirements under IAS 39. In response to the delayed recognition of credit losses, the IASB issued the new impairment requirements that are based on a more forward-looking “expected credit loss (ECL) model”.

In 2014, the IASB issued the final version of IFRS 9, Financial Instruments, bringing together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace IAS 39 and all previous versions of IFRS 9.

The new impairment model in the standard is designed to recognize credit losses earlier by requiring an allowance for either a 12-month or lifetime ECL.

Although the standard will apply to all entities, financial institutions such as banks will be most affected as their portfolios are largely comprised of financial assets measured at amortized cost or at fair value through other comprehensive income (FVOCI). Adopting the ECL requirements will require significant efforts, thus, necessitating a timely and effective preparation.

BACKGROUND

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I. Overview of IFRS 9, Financial

Instruments – Classification and Measurement and Hedge Accounting

II. IFRS 9, Financial Instruments – Impairment of Financial Assets A. Historical overview B. Incurred loss (IAS 39) vs. Expected loss model (IFRS 9) C. Objectives of the expected loss model D. Financial assets within scope E. Relevant regulatory guidance for banks ► Basel Committee Consultative Document on Guidance on accounting for expected credit losses ► BSP Circular 855 on Guidelines on credit risk management practices

Outline

F. Mechanics of the general “three-bucket” model ► Stage 1 – 12-month expected

credit loss allowance ► Stage 2 – Lifetime expected

credit loss allowance ► Stage 3 – Lifetime expected

credit loss allowance

G. Determining significant increases in credit risk

► Changes in the risk of a default occurring

► Factors or indicators of changes in credit risk

► Defining the transfer criteria –what is “significant”?

► Simplifications and presumptions in assessing significant increase in credit risk

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Implementing the New IFRS 9 Expected Credit Loss Model for Banks (cont.)

H. Applying the “three-bucket”

model – Measurement of expected credit losses ► Defining “default” ► 12-month versus lifetime

expected credit losses ► Expected life versus

contractual period ► Probability-weighted

outcome ► Time value of money ► Collateral ► Use of “reasonable and

supportable information” ► Capturing “future default

events” and the need for forecasting

► Contrasting expected credit loss concepts of Basel and

IFRS 9

I. Exceptions of the general “three-bucket” model ► Trade receivables ► Credit impaired financial assets

J. Special applications

► FVOCI assets ► Loan commitments ► Financial guarantee contracts ► Revolving credit facilities ► Initially credit-impaired assets ► Modified or restructured assets ► Trade and lease receivables

III. Disclosure requirements IV. Effective date and transition V. Key differences from the FASB US

GAAP proposals VI. Business impact and implementation

challenges

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3.4

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Officers and staff from the following functions:

► Credit risk policy and management

► Credit risk modelling

► Controllership and finance

► Corporate planning

► Treasury and treasury operations

► Internal audit

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Implementing the New IFRS 9 Expected Credit Loss Model for Banks (cont.) 3.4 4 PFRS 13

Fair Value Measurement

These are one or two-day courses on PFRS 13 designed for managers and finance professionals from various industries. These aim to provide comprehensive understanding of PFRS 13 principles and the framework for measuring the fair value of assets and liabilities.

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4.1 An Intensive Training on

PFRS 13

This two-day course aims to:

► Provide a comprehensive

understanding of PFRS 13 principles and the framework for measuring fair value of financial and non-financial assets and liabilities, including:

► Key fair value measurement

approaches

► Appropriate valuation

techniques to use

► Inputs to valuation techniques

► Fair value hierarchy

► Equip participants with the skills and

information to:

► Determine implications of the new

standard to key areas where fair value measurement is required

► Assess impact on key business

areas


Outline ► Introduction and seminar

objectives

► PFRS 13

► Background and objectives of PFRS 13

► Scope

► Fair value measurement approaches



► Business impact

► Fair value implications for real properties

► Valuation of unquoted equity securities

► Introduction

► Objective

► Process of fair value measurements

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Executives working in entities:

With financial instruments

That use fair value model for investment property

That revalue property, plant and equipment or intangible assets


Comptrollership and accounting


Corporate planning


Collateral appraisal and valuation

► Valuation approaches for

unquoted equity securities

1. Market approach

2. Income approach

3. Other approaches

► Common oversights

► Additional sources for

valuation of unquoted

equity securities

► Credit value adjustment

► Background

► Key credit risk concepts

► Replacement cost and expected

exposure

► Portfolio valuation and

consideration of credit mitigation

► Consideration of own credit risk

► Calculation methods

1. Current and expected

exposure approach

2. Discount rate approach

3. Variable and constant

exposure approach

4. Valuation inputs for each

approach

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Entities (SMEs) PFRS 13, Fair Value 4.2 Measurement, for Banks

This one-day course aims to help the participants acquire comprehensive

understanding of PFRS 13 in the context of financial reporting in banks.

Outline

► Introduction and seminar objectives

► PFRS 13

► Background and objectives

► Scope

► Fair value measurement approaches



► Business impact

► Fair value implications for real properties

► Credit value adjustment

► Background

► Key credit risk concepts

► Replacement cost and expected exposure

► Portfolio valuation and consideration of credit mitigation

► Consideration of own credit risk

► Calculation methods

1. Current and expected future exposure approach

2. Discount rate approach

3. Variable and constant exposure approach

4. Valuation inputs for each approach

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Executives working in banking institutions


Comptrollership and accounting


Internal audit

Risk management

Corporate planning


Collateral appraisal and valuation

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5 Key Aspects of Consolidation

This two-day course aims:

► To provide participants with the basic consolidation concepts and principles

► To illustrate the more difficult areas in preparing consolidated financial statements

► To inform participants about the concepts and principles of the standards on group accounting such as PFRS 10, 11 and 12

► To update the participants with the most recent pronouncements related to consolidation and group accounting

Outline

DAY 1

I. Key definitions related to consolidated financial statements

II. Fundamental consolidation

issues

A. Accounting for investments in the investor’s stand-alone financial statements

B. Stand-alone financial statements

III. Overview of business combination

concepts

A. Acquisition of assets versus acquisition of a business

B. Common control business combinations ► Pooling of interest method

C. Acquisition method of accounting

D. Recognition and Measurement of: ► Consideration transferred ► Assets and liabilities

acquired ► Goodwill or gain on

bargain purchase ► Non-controlling interests

E. Subsequent measurement and accounting

IV. Concept of control and how to

assess control

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15

DAY 1 (cont.)

V. Overview of the provisions of the following standards:

A. PFRS 11, Joint Arrangements B. PAS 28, Investments in

Associates and Joint Ventures ► ► Accounting for

investments in associates ► ► Application of the equity

method of accounting ► ► Elimination of share of

unrealized profits or losses from transactions between the investor and the associate

VI. Consolidated statement of financial

position and statement of comprehensive income

A. Discussion of the rules in

preparing: ► Consolidated statement of

financial position

► Consolidated statement of comprehensive income

DAY 2

I. Consolidated statement of financial

position and statement of comprehensive income (cont.)

B. Discussion of the rules on:

► Consolidation adjustments ► Elimination of intercompany

transactions ► Impact of elimination of

intercompany transactions on non-controlling interests

II. Consolidated statement of changes in equity

III. Consolidated statement of cash

flows

A. Issues relating to the preparation of the consolidated statement of cash flows

B. Examples on the preparation of a consolidated statement of cash flows

Key Aspects of Consolidation (cont.)

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5

IV. Key disclosure requirements:

A. Accounting policies B. Judgments and estimates C. Required disclosures on

subsidiaries with material non-controlling interests

D. Required disclosures on material associates and joint ventures

E. Deferred tax assets and deferred tax liabilities

V. Philippine SEC requirements on

consolidated financial statements VI. Amendments to existing standards

on group accounting and business combinations effective in 2015 and beyond

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finance directors who are responsible for the preparation of

consolidated financial statements

Those who are responsible for the preparation of group reporting

packages that will be used as inputs for consolidated financial

statements

Those who would like to gain a more in-depth knowledge on the

principles of consolidation and control

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6 PFRS for

Small and Medium-Sized Entities (SMEs)

Outline

► Background on PFRS for SMEs

► Philippine SEC Guidance on PFRS for SMEs

► Concepts and Pervasive Principles

► Comparison: PFRS for SMEs versus Full PFRS

► Preparation and presentation of financial statements

► Elements of financial statements

► Overview of the IASB’s Comprehensive Review of IFRS for SMEs

► Philippine Interpretations Committee (PIC) Final Questions and Answers (Q&A) on Philippine Adoption of SME Implementation Group (SMEIG) Q&As

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PFRS for SMEs is a one-day course that aims to provide the following:

► Updates on the accounting standards for SMEs; including updates on the

IASB’s Comprehensive Review on IFRS for SMEs

► A comparison of these accounting standards with the full PFRS

► Specific guidance from the Philippine SEC on accounting standards

applicable for SMEs

► Answers to frequently asked questions

The PFRS for SMEs is self-contained and is a complete set of generally

accepted accounting principles. It is based on the full PFRS but is tailored

to the needs and resources of those entities that are not required to apply

the full PFRS.

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finance directors who are responsible for preparing and analyzing

financial statements under PFRS for SMEs

Those who would like to gain an understanding of the application of

PFRS for SMEs

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7 Accounting for

Non-accountants

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This is a two-day course that focuses on the fundamentals of accounting, the basic accounting concepts and principles, and the elements of the financial statements. The seminar is designed to help ‘non-accountant’ managers, directors, owners and employees gain an understanding of the basic accounting concepts and their actual application to their businesses. The course also aims to equip participants with tools and techniques that can be useful for the preparation and analysis of financial accounting reports and financial projections.

This course is divided into two modules:

► Module 1 is about the basic accounting principles, concepts and the various elements of the financial statements

► Module 2 is about tools and techniques of financial analysis for use in various

applications

Those who would like to gain a

more in-depth understanding

of the accounting process

Business owners,

entrepreneurs, managers and

directors who need to use

accounting reports for

decision making

Those who would like to

acquire fundamental

knowledge of the underlying

accounting concepts and

principles

► Introduction

► Basic accounting concepts

► Accounting assumptions

► Accounting principles

► Financial transaction analysis

► Overview of an accounting information system

► Objectives of an accounting system

► Features of an effective accounting system

► Flow of accounting data in a typical accounting system

► Nature, purpose and elements of the following:

► Statement of financial position (balance sheet)

► Statement of comprehensive income

► Statement of changes in equity

► Statement of cash flows

► Cost concepts and

classification

Module 2

► Tools and techniques of financial analysis for use in various applications

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Module 1

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8 PFRS Series

These are half-day courses designed for more focused, back-to-the-basics discussions on specific accounting standards. The courses are a mix of basic concepts and actual hands-on practice or case studies. Participants may choose to register in only one course or in various courses, depending on their specific training needs.

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8.1 Accounting for Property,

Plant and Equipment and

Investment Properties

This course helps the participants understand the basic provisions of PAS 16, Property, Plant and Equipment, PAS 40, Investment Property, and PFRS 5, Noncurrent Assets Held for Sale and Discontinued Operations, and the interaction of these three standards. This course covers the following topics:

► Scope ► Definitions and criteria for

classification ► Accounting for acquisition costs

and subsequent measurements ► Models of valuation (cost, fair

value and revaluation model) ► Methods of depreciation ► Capitalization of borrowing costs ► Conditions for classification as

noncurrent asset held for sale ► Disposal groups ► Presentation and disclosure

requirements ► Case studies

8.2 Accounting for Income

Taxes

The objective of this course is to enable

the participants to interpret and apply

the concepts of PAS 12, Income Taxes,

specifically current and deferred income

taxes, tax bases of assets and liabilities

and temporary differences.

This course covers the following topics:

► Definitions – current tax, deferred tax and temporary differences

► Tax base of assets and liabilities ► Measurement and recognition of

income tax and deferred tax ► Presentation and disclosure

requirements ► Case studies ► A short discussion on transfer

pricing rules and regulations

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Course Offerings and Description


► Introduction to standards on consolidation, joint arrangements and related disclosures

► PFRS 10

► The control model

► Illustrative examples

► PFRS 11

► Classification of joint

arrangements

► Illustrative examples

► PFRS 12

► Key disclosure requirements

for subsidiaries, joint arrangements, associates and structured entities

► Investment Entities (amendments to PFRS 10, PFRS 12 and PAS 27, Separate Financial Statements)

8.3 Group Accounts: PFRS 10,

11 and 12

This course aims to:

► Discuss and provide participants with the underlying concepts and principles of PFRS 10, Consolidated Financial Statements, PFRS 11, Joint Arrangements and PFRS 12, Disclosure of Interests in Other Entities

► Discuss and provide illustrative examples of the application of these standards

► Provide potential resolution of issues and gray areas resulting from their application

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8.4 PAS 19, Employee Benefits

(Revised)

This course aims to:

► Provide participants with the basic

concepts of PAS 19

► Provide examples and illustrative

disclosures

► Explain the standard’s tax

implications, and

► Discuss the common difficulties in

the application of this standard

This course covers the following

topics:

► PAS 19, Employee Benefits (Revised)

► Frequently asked questions

► Examples

► PAS 19 (Revised) illustrative

disclosures

► Tax implications

8.5 Impairment of Assets

……………..

This half-day course provides participants with the underlying concepts and principles of PAS 36. It also provides illustrative examples of their application.


► Objectives and scope of PAS 36

► Identifying when an asset may be impaired

► Impairment testing

► Recoverable amount

definition and calculation

► Impairment loss

measurement

► Impairment of property,

plant and equipment and

intangible assets

► Impairment of goodwill and

cash-generating units

► Impairment reversals


► Common errors and issues relating to impairment testing

► Case study

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8.6 A Workshop on the

Preparation of the

Statement of Cash Flows

As one of the four basic financial statements, the statement of cash flows is key in determining what the sources of the company’s cash are and where the cash goes. For some financial statement analysts and readers, this statement may be equally important, if not more important, than the other financial statements.

This workshop is designed to help the participants prepare the statement of cash flows as required by PAS 7, Statement of Cash Flows.

PFRS Workshops The participants will learn the basics of calculating the individual components of this statement as well as the non-operating changes in assets and liabilities due to various factors such as acquisitions and disposals, foreign currency translations and other comprehensive income.

This course will cover the following:

► Objectives and definitions

► Examples of operating, investing and financing activities

► Methods of reporting cash flows from operating activities

► Reporting other cash flow items

► Balance sheet changes and cash flow adjustments

► Non-cash items and transactions

► Other cash flow topics: pensions, acquisitions and disposals of subsidiaries and other businesses, discontinued operations and foreign currency translations

► Presentation and other disclosure requirements

► Case studies

The following workshops, part of the

PFRS Series, are designed to equip

companies’ accountants and finance

people with the practical knowledge on

certain elements and disclosure

requirements of the financial statements.

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8.7 A Workshop on Segment

Reporting

This workshop is designed to help the participants apply the specific provisions of PFRS 8, Segment Information, in their financial statements. It provides actual examples and hands-on applications on the key elements or provisions of this accounting standard.


► Core principles and scope

► Operating segment – definition and aggregation

► Reportable operating segments (with specific examples)

► Quantitative thresholds

► Measurement and reconciliations


► Case studies on determining reportable operating segments, quantitative thresholds and measurements and reconciliations

8.8 Related Party Transactions

and Disclosures

The increasing focus by the public, in general, and the regulators, in particular, on related party transactions make it imperative that entities properly identify who their related parties are, account for these transactions accurately and ensure completeness of the disclosures on related party transactions.

This workshop will help participants determine an entity’s related parties and gain familiarization not only on the disclosure requirements of PAS 24, but also with the regulatory requirements on disclosures of related party transactions.


► Scope and objectives

► Definitions

► Related parties

► Other definitions

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8.9 A Workshop on the

Preparation of Interim

Financial Statements

The objective of this workshop is to enable the participants to gain an understanding of the contents and disclosure requirements related to interim financial statements, as prescribed by PAS 34, Interim Financial Reporting, and by current regulations.


► Scope and objective

► Definitions

► Minimum contents of the interim financial statements

► Form and content

► Requirements for the presentation of interim financial statements


► Examples of:

► Recognition and measurement

► Use of estimates

► Restatements of interim financial statements

► Current regulatory requirements regarding interim financial statements

► Relationships that are not necessarily within the definitions

► Disclosure requirements of PAS 24

► SEC pronouncements and requirements for related party transactions

► An overview of transfer pricing regulations

► Illustrative disclosures

8.8 Related Party Transactions

and Disclosures (cont.)

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PFRS on Demand

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In addition to the standard courses, we also create and deliver customized PFRS

courses that are geared towards addressing our clients’ needs. These courses

can run anywhere from half a day to 5 days and can cover any aspect of the

accounting standards, including focus on specific industries. When you avail of

our customized PFRS courses, you will enjoy the following benefits:

► Savings on training cost

► Customized topics and targeted training

► Location and dates of your choice

Schedules are subject to change without prior notice. Please confirm the scheduled dates

prior to finalizing your registration.

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Schedule of Trainings Title Duration Date

1. PFRS: Changes in 2015 and Beyond 2 days June 24-25, 2015

Sept. 15-16, 2015

2. Introduction to the New Revenue

Recognition Standard

Half day Aug. 18, 2015

3. Financial Instruments

3.1 Accounting for Financial

Instruments

1 day July 14, 2015

Oct. 21, 2015

3.2 Derivatives and Hedge Accounting 1 day Aug. 11, 2015

Nov. 10, 2015

3.3 Introduction to Accounting for

Financial Instruments under

IFRS 9

Half day June 18, 2015 (AM)

Aug. 20, 2015 (AM)

3.4 Implementing the New IFRS 9

Expected Credit Loss Model for

Banks

1 day June 9, 2015

4. PFRS 13, Fair Value Measurement

4.1 An Intensive Training on PFRS 13 2 days July 14-15, 2015

4.2 PFRS 13, Fair Value

Measurement, for Banks

1 day Aug. 17, 2015

5. Key Aspects of Consolidation 2 days June 23-24, 2015

Oct. 13-14, 2015

6. PFRS for Small and Medium-Sized

Entities (SMEs)

1 day July 8, 2015

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Title Duration Date

7. Accounting for Non-accountants Jan. 19-20, 2016

8. PFRS Series

8.1 Accounting for Property, Plant

and Equipment and Investment

Properties

Half day July 15, 2015 (AM)

Sept. 22, 2015 (AM)

8.2 Accounting for Income Taxes Half day July 15, 2015 (PM)

Sept. 22, 2015 (PM)

8.3 Group Accounts: PFRS 10, 11 and

12

Half day Aug. 18, 2015 (AM)

8.4 PAS 19, Employee Benefits

(Revised)


Sept. 23, 2015 (AM)

8.5 Impairment of Assets Half day July 21, 2015 (PM)

Sept. 23, 2015 (PM)

8.6 A Workshop on the Preparation of

the Statement of Cash Flows


Oct. 21, 2015 (AM)

8.7 A Workshop on Segment

Reporting

Half day Aug. 19, 2015 (AM)

8.8 Related Party Transactions and

Disclosures

Half day July 22, 2015 (PM)

Oct. 22, 2015 (PM)

8.9 A Workshop on the Preparation of

Interim Financial Statements

Half day Aug. 19, 2015 (PM)

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For inquiries and concerns, contact us: Ma. Emilita L. Villanueva [email protected] / 891-0307 local 7911 Jerome M. Austria [email protected] / 891-0307

SGV & Co. Assurance | Tax | Transactions | Advisory About SGV & Co. SGV is the largest professional services firm in the Philippines that provides assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. SGV & Co. is a member firm of Ernst & Young Global Limited. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com/PH. © 2015 SyCip Gorres Velayo & Co. All Rights Reserved. APAC No. 10000052

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