Mastering all the consolidation issues related to foreign currency transactions
  • Consolidation scope - Consolidation scope - First consolidation - Goodwill – Control - Minority interests
  • Consolidation under IFRS - Accounting production: Know how to prepare consolidated accounts under IFRS.
  • Financial instruments and hedging tools - Be familiar with financial instruments and hedging tools (fair value hedge /cash flow hedge, titirisation, credit derivatives, hybrid debt)
  • Financial statements and notes - Know the balance sheet, the income statement, the cash flow statement, the statement of changes in shareholders' equity, the OIC, the notes.
  • IFRS standards - International Financial Reporting Standards

Target audience

- Accounting managers
- Chartered Accountants, Statutory Auditors
- Consolidation and Accounting Directors
- Consolidation managers
- Financial Directors and Controllers
- Financial managers

2 day

Prerequisites

it is recommended to master the consolidation process, by having attended, for example, the module called « Consolidation techniques in IFRS – Advanced ».

Objectives

– Master all accounting treatments arising from foreign currency transactions in IFRS: financial instruments translation, translation adjustments in intragroup elimination, foreign currency hedging
– Know how to calculate, follow and audit the Cumulative Translation Adjustment (CTA) in equity
– Be able to solve issues related to foreign currencies in the cash flow statement

Detailed content

> Conversion rules prescribed by IAS 21

> The issue of monetary and non-monetary items. Interaction between IAS 21 and IFRS 9.

> Conversion rules for cash flows used in impairment tests

> Analysing and checking translation adjustments in intragroup eliminations

– Net investment in a foreign entity
– Intercompany adjustments
– Dividend distribution
– Capital increase

> Impacts of currency hedges on each component of the financial statements: income statement, Other Comprehensive Income (OCI) statement and balance sheet

– Different types of hedge accounting
– Effectiveness of hedging and impacts on net result

> How to calculate, follow and audit the Cumulative Translation Adjustment in equity

– Recycling in profit and loss
– CTA and merger transactions

> Converting cash flows in the cash flow statement

– Currency gain or loss in cash
– Balancing conversion cash flows

> Net Investment Hedge

Why should you attend?

Foreign currency transactions generate many difficulties when preparing consolidated financial statements. A good understanding of conversion rules and mechanisms is necessary to master the treatments to complete the impacts resulting from the configuration of the consolidation software.
This training allows you to master the key principles related to foreign currency translation and suggests options in order to optimize or audit impacts on equity and on the cash flow statement.

Training methods and assessment

Presentation supported by many illustrations drawn from recent cases and actual financials statements.
Immediate implementation of subjects with exercises in a progressive summary case study.
Summary sheet for main takeaways included in training material.
A summary quiz allows a final evaluation of knowledge.
Assessment questionnaire.
A training certificate is delivered at the end of the session.

The trainer is available by e-mail to answer any follow-up questions participants may have.

Price

1 840 € Excl. VAT – 2 208 € Incl. VAT

Médias

Témoignages

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Jonathan C.
Entreprise
Formation