UNDERSTANDING THE IFRS FRAMEWORK: PRINCIPLES, CONCEPTS, AND GUIDELINES

INTRODUCTION
International Financial Reporting Standards are built on principles rather than rigid rules. While this allows flexibility, it also creates challenges for professionals who must apply judgement, interpret guidance correctly, and ensure consistency in financial reporting.

This two-day training is designed to help participants develop a solid understanding of the IFRS framework and how it underpins all IFRS standards. Rather than focusing on individual standards, the training explains the concepts, principles, and guidelines that guide recognition, measurement, presentation, and disclosure.

Participants will learn how to read and interpret IFRS requirements with confidence, apply professional judgement appropriately, and understand the reasoning behind accounting treatments.
 

COURSE OBJECTIVES

By the end of this training, participants will be able to:

• Understand the purpose and structure of the IFRS framework
• Explain the key principles and concepts that guide IFRS reporting
• Apply professional judgement in line with IFRS requirements
• Identify recognition and measurement principles across standards
• Understand presentation and disclosure objectives

• Improve consistency and transparency in financial reporting

   

COURSE OUTLINE

Module 1: Introduction to IFRS and the Conceptual Framework

• Purpose of IFRS and global financial reporting
• Role of the IFRS Conceptual Framework
• Principles-based versus rules-based standards
• How the framework supports standard-setting and application

Module 2: Objective of General-Purpose Financial Reporting

• Who financial statements are prepared for
• Information needs of users
• Decision-useful financial information
• Stewardship and accountability

Module 3: Qualitative Characteristics of Financial Information

• Relevance and faithful representation
• Comparability, verifiability, timeliness, and understandability
• Balancing qualitative characteristics
• Practical implications for financial reporting

Module 4: Elements of Financial Statements

• Assets, liabilities, equity, income, and expenses
• Definitions and key distinctions
• Substance over form
• Common areas of misunderstanding

Module 5: Recognition and Derecognition Principles

• Criteria for recognizing assets and liabilities
• Recognition of income and expenses
• Derecognition concepts
• Applying judgement in recognition decisions

Module 6: Measurement Bases under IFRS

• Historical cost and current value
• Fair value, value in use, and amortized cost
• When different measurement bases apply
• Impact on financial statements

Module 7: Presentation and Disclosure Principles

• Objectives of presentation and disclosure
• Structure of financial statements
• Materiality and aggregation
• Avoiding clutter and over-disclosure

Module 8: Application of Professional Judgement

• Role of judgement in IFRS reporting
• Consistency and documentation of judgement
• Managing estimates and assumptions
• Audit and regulatory expectations

Module 9: Interpreting and Applying IFRS Standards

• Reading IFRS standards effectively
• Understanding the link between standards and the framework
• Resolving accounting issues not directly addressed by standards
• Use of guidance and interpretations

Module 10: Practical Challenges and Common Pitfalls

• Frequent IFRS application errors
• Managing changes in standards and updates
• Ensuring consistency across reporting periods
• Strengthening internal IFRS knowledge and controls