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Impairment Insight: Value in Use and Fair Value in the COVID-19 era



Delve into the key issues impacting on impairment and fair valuation and gain practical insights from our experts, Kevin Frohbus and Simon Dalgarno. Whether you are a Finance leader reviewing impairment calculations for your financial statements or auditing them, this workshop examines IAS 36 Impairment of Assets and IFRS 13 Fair Value Measurement in detail and provides in depth guidance on how to prepare for your year-end reporting.

This event is now over, however we are keen to respond to our member’s needs and continue to provide you with up-to-date and relevant education.

If you are would like to take part in this event in the future, please click the register now button to be added to our waitlist. Once we have finalised options to host additional sessions for this workshop, we will be in touch to provide you with further information and confirm your booking.

Virtual classrooms take the interactive elements of a face to face workshop and superimpose these into an online experience. Virtual classrooms use engaging, scenario-based learning methods that include peer to peer learning and one on one engagement with expert facilitators. You will ‘learn by doing’ via interactive activities and practical case studies in an intimate and hands-on learning environment.


Content Description:
Regulators continue to identify impairment testing as one of their principal focus areas and accordingly CFO’s and auditors are under increasing pressure from directors and regulators to ensure the accounts are prepared correctly and they can support the carrying value of goodwill and other assets across the business

 

Benefit from Kevin Frohbus’s insights into the accounting standards and Simon Dalgarno’s valuation expertise in these virtual classrooms as they examine IAS 36 and IFRS 13 in detail and provide you with examples and practical advice on how to prepare for year-end reporting.


This 4-part intensive online course on Impairment of Assets (IAS 36) and Fair Value Measurement (IFRS 13) will begin with the theory and a brief introduction before delving into the details of each standard, the differences and the interconnection between them.

Complying with these standards requires a reliable business process that incorporates information about how the assets came to be recognised initially, the assumptions about their ongoing use and value, and an approach to navigate the complex mix of valuation methodologies and accounting principles that are often contradictory and sometimes inconsistent. 


Benefits:
This 4-part intensive online course is aimed at those senior finance leaders and audit practitioners who are involved in preparing or reviewing impairment calculations based on using value in use and fair value methodologies. 

The virtual classrooms will provide participants with a comprehensive and detailed understanding of the two approaches to undertaking impairment testing and applying the requirements of the standards. 

Specifically, the additional considerations that will be introduced into the impairment process from 2019 as a result of the new leasing standard, IFRS 16 Leases, will be outlined and considered throughout the day. 

Participants will benefit from the expertise of two highly experienced presenters, who will share their key insights, tips and things to look out for when performing the impairment and valuation analysis. It will also help participants be more aware of the accounting reporting requirements in the financial statement or audit process.


Live webinar details:
The live 4 part live webinar series will be run as follows:
Session 1: Thursday 7 May 2020
Session 2: Thursday 14 May 2020
Session 3: Thursday 21 May 2020
Session 4: Thursday 28 May 2020
(each webinar will run for 100 minutes)

The live webinar session will take place from 12:00 - 1:40pm (AEST). Registration & login will open from 11:30am

The webinar links will be sent to you approx 4 days prior to the webinar.

Learning Outcomes:
Upon satisfactory completion of this course, you will be able to:
  • Apply the fundamentals of IAS 36 Impairment of Assets and IFRS 13 Fair Value Measurement
  • Identify the indicators of impairment
  • Explain the difference between fair value and value in use and the impact this has on the valuation model for impairment
  • Identify the most common errors made when working with these standards
  • Develop a framework to prepare for your year-end financial statements
  • Explain the components of a good valuation model
  • Describe the components of a discount rate
  • Examine the models for common errorsInterpret the valuation result and explain how to translate it to compare to goodwill and other assets in the business unit
  • Prepare answers for some questions your auditor might ask
  • Articulate the approach to communicating information about the impairment assessment to investors in the financial statements.  
  • Develop a strategy on how to manage expectations of Boards and CEOs.



Thursday, 7 May 2020
Session 1: Impairment Fundamentals
The presenters will set the scene for impairment testing in FY2020 and outline the impairment approach in AASB 136 (IAS 36) Impairment of Assets and AASB (IFRS) 13 Fair Value Measurement. 
  • Topics in this session include: 
  • The basis for recognising and measuring assets,   
  • Identifying assets that may be impaired, including Right-of-Use Assets (leased assets under AASB 16 Leases),
  • Assigning assets to Cash Generating Units (CGUs) for impairment testing, 
  • Adapting the impairment process for the impact of COVID-19, and  
  • Planning for cash flow forecasts that incorporate the affects and uncertainties of a global pandemic. 


Thursday, 14 May 2020
Session 2: Valuation Theory
Before attempting an impairment calculation, it is important to understand the fundamental valuation concepts that underpin its use. In this session, you will be guided through the basics of preparing valuations, including discussing:  
  • The different valuation methods and when to use them, 
  • The advantages and disadvantages of each valuation method, 
  • The components and application of a good Discounted Cash Flow Model, and
  • The components of the discount rate, and its interaction with the rest of the valuation model.


Thursday, 21 May 2020
Session 3: Interaction of Standards and Valuation theory
The presenters will examine further the interconnection between valuation theory and accounting standards in this session, using a host of practical examples and real-life scenarios that they have encountered in their professional careers.  Topics to be addressed include: 
  • Dealing with foreign currencies and lease liabilities in impairment assessments, 
  • Common errors to avoid when working with impairment models, and
  • Analysing and communicating the impairment result. 
  • The session will introduce a “Road Map to Year End”, which is provided to assist participants and help businesses establish and run a successful impairment project in FY2020.


Thursday, 28 May 2020
Session 4: Bringing it into the Model 
In this final session, the presenters will demonstrate the application of the impairment concepts in a Value-in-Use Model for a hypothetical business. The Model’s key assumptions will be explained, together with an analysis of the components of the discount rate and how they all interact.  
The presenters will conclude the “Road Map to Year End” segment of the series, discussing matters of stakeholder management, sensitivity testing, disclosures related to impairment testing and cash flow modelling, and how to manage the Board and the CEO’s expectations with regard to asset valuations in 2020. 
Simon Dalgarno FCA, has worked in the financial valuation industry for almost twenty years and is a CA BV Specialist and a Fellow of the Financial Services Institute of Australasia. Since joining the Leadenhall consulting practice in 1998 he has specialised in the valuation of businesses and intellectual property. Simon has extensive experience in the valuation of businesses and intangible assets.

Kevin Frohbus, is an IFRS advisory specialist with over 20 years’ experience. Kevin was at the forefront of the adoption of IFRS in the early 2000’s and has served as partner and technical director at two large, multi-national audit and advisory firms for over 13 years before joining BDO’s IFRS Advisory team in 2017.
Webinar details:
The live 4 part live webinar series will be run as follows:
Session 1: Thursday 7 May 2020
Session 2: Thursday 14 May 2020
Session 3: Thursday 21 May 2020
Session 4: Thursday 28 May 2020
(each webinar will run for 100 minutes)

The live webinar session will take place from 12:00 - 1:40pm (AEST). Registration & login will be available from 11:30am

The webinar links will be sent to you approx 4 days prior to the webinar.

EVENT DETAILS


Topic: Audit & Assurance

Sub-Topic: Business Reporting, Business Valuation, Financial Reporting, Financial Statement Audit, Internal Audit, Risk Management

Format: Workshop

Proficiency Level: Intermediate

CPD: Upto 6.5 hours