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Advanced Certificate Program on IFRS: Implementation and Compliance

January 2012

Agenda 1

2

5

Regulatory developments

About the program

About KPMG in India – Accounting Advisory Services

6 Synchronous Learning – NIIT Imperia

3 Upcoming programs

4 Program Director and Trainer Pool

7 Other details

Regulatory developments

1.

4

© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent

member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

All rights reserved.

Announcement by the Ministry of Corporate Affairs (MCA) dated January 22, 2010

Other amendments to the Companies Act

(including, e.g. Schedule VI and Schedule

XIV) will be undertaken in a time bound

manner to facilitate the process of

convergence

Anticipated timeline of achieving convergence

Phase 1 – Transition date April 1, 2011

NIFTY 50

SENSEX 30

Companies whose shares or other securities listed on stock exchanges outside India

Companies (listed or unlisted) with net worth in excess of INR 1000 crores

Phase 2 – Transition date April 1, 2013

Companies (listed or unlisted) with net worth in excess of INR 500 crores but not exceeding INR 1000 crores

Phase 3 – Transition date 1 April 2014

Listed companies with net worth of INR 500 crores or less

Existing

Indian

Accounting

Standards

IFRS converged

standards

Indian GAAP books to be maintained for taxation purposes

IFRS convergence in India – Phased approach

© (2011) KPMG, an Indian Partnership and a member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights

reserved.

IFRS timelines for banks and insurance companies

Banks Insurance companies NBFCs

SCB* and UCB#

with net worth >

INR.300 Crores

April 1, 2013

UCB with net

worth > Rs.200

Crores but < =

INR.300 Crores

April 1, 2014 April 1, 2012

1. Part of Nifty 50 /

BSE 30

2. Net worth >

INR.1,000 Crores

April 1, 2013

Net worth >

INR.500 Crores

April 1, 2014

* - Scheduled commercial banks

# - Urban co-operative banks




6

Recent regulatory updates

Converged Indian accounting standards (Ind AS) notified by

the Ministry of Corporate Affairs (MCA) in February 2011

Timeline for Ind-AS convergence likely to be deferred

Several „carve-outs‟ (deviations) from IFRS issued

internationally

Amendments to the Companies Act

Revised Schedule VI notified in February 2011

Timeline for applicability of AS 30, 31 and 32 (Indian

standards on financial instruments) deferred

Separate records for tax purposes - Position paper by

Institute of Chartered Accountants of India (ICAI);

Committee formed by Ministry of Finance

MCA notification dated 31 March 2011 mandates filing of

financial statements in XBRL format from 2010-11

About the program

2.

8




Information session for the program

Why should I attend the Information

Session? To evaluate the programs rigorously and in

depth before taking the final decision on the

programs to be pursued

Who will host the Information Session? Mr. Chandrashekhar, Associate Director

Accounting Advisory Services, KPMG in India

who is also the program director of the IFRS

programs will be hosting the information session

and answer your queries about the program.

How can I register for the Information

session? To attend information session about the

program Register Here or call 1800-266-0304

(MTNL/BSNL) or 040-66124690 (Others) (Or)

Write to [email protected]. To know more call Us At 1800-266-0304 (Or) Write to [email protected].

https://spreadsheets.google.com/spreadsheet/viewform?formkey=dGcxdFJxVGJNbzUyVG1fVE9FYzRxX0E6MQ

mailto:[email protected]


9




Advanced Certificate

Program on IFRS:

Implementation and

Compliance

Back

To know more call Us At 1800-266-0304 (or) Write to [email protected].





10

About the program (1/2)

Professional from KPMG in India with significant IFRS conversion

experience

Trainers of International Repute

Focused toward challenges to be faced by each stakeholder in

IFRS conversion

Practical inputs on carrying out a conversion exercise

Mix of Experience Sharing Real Life Case Discussion

Use of Illustrative Financial Statements Industry Disclosure

Requirements, etc.

Certification of completion on successful assessment clearance from

KPMG in India and NIIT Imperia

Faculty

Program Design

Pedagogy

Certification

In the first seventeen batches, organizations like Wipro Technologies, ICICI Prudential Life Insurance,

Capgemini, Oriental bank of Commerce, Hindustan Motors, NHPC, Reliance Power, Tata Motors, Bank of

Maharashtra, Yahoo, etc. have nominated their employees for the program

To know more call Us At 1800-266-0304 (Or) Write to [email protected].





11

About the program (2/2)

Ram Iyer, Director, Accounting Advisory Services, KPMG in India

6 Weeks

Graduates, Students majoring in finance, CA’s, CS’, CWA’s, MBA (Finance).

Batch 18 – Friday 9:00AM – 5:30 PM Jan 6, 13, 20, 27, Feb 3,10 2012

Program director

Duration

Eligibility

Schedule (Tentative)

Fees Batch 18 - INR 38,500/- + 10.3% Service Tax- INR 42,466/-






12

Benefits of IFRS/ Ind-AS training

12

Getting trained early on IFRS/ Ind-AS could result in certain

advantages:

Enables better management of the entire change process whereby

IFRS/ Ind-AS reporting can be embedded into the financial reporting

processes and systems (including IT systems, as required).

Enables better management of the expectations of all stakeholders

about impact on earnings and equity

Can be used as a trigger to streamline/ improve financial reporting

policies and processes and identify existing gaps in policies and

processes prior to mandatory adoption in India

Enables smoother transition to IFRS/ Ind-AS

Facilitates creation of a trained resource pool in timely manner within

financial reporting and business teams to deal with transition-related

challenges

Enhanced value of the trainee‟s CV

Better understanding of global accounting norms




13

Who should attend?

This program should be of value to you if you are:

Graduate who is a part of Finance/ Accounting team

Student of CA/ CS/ ICWA/ CFA Final level

CFO & Finance Director

Analysts, Accountant

Investment Banker

Corporate Banker

Strategic Planner

Auditor

Private Equity & Merger & Acquisition specialist

Tax Director

Consultant

Practicing CA, CS, CWA, and professionals from Indian

companies with a global presence






Module Coverage

Presentation of financial statements

Revenue recognition

Business combinations

Financial instruments

Consolidation

Overview/Roadmap and IFRS Framework

Income taxes

Property, plant and equipment, intangible assets

and investment property

Impairment and Provisions/contingencies

Employee benefits, Share based payment, Non-current

assets held for sale and discontinued operations

Leases, borrowing costs, operating segments, events

After the balance sheet date, change in accounting

policies and errors

The effect of change in Foreign exchange rates






The purpose, status and scope of the Framework

The fundamental concepts and definitions upon which IFRSs are based

The history and objectives of IASB

IASB as an organisation

IFRSs around the world

IASB‟s work program

The concept paper of ICAI and current environment on transition to IFRS

IFRS‟s issued by the IASB including IFRS 1

IASs issued by the IASC or revisions thereof issued by the IASB

Interpretations issued by the IFRIC and approved by IASB

SIC interpretations approved by the IASB or the IASC

Overview/Roadmap and IFRS Framework

Topics covered in the module

Upon completion you should understand






The required components of financial statements

How to apply overall financial statement concepts and assumptions

The structure of financial statements

Presentation of financial statements



IAS 1 – Presentation of Financial Statements

Comparison with corresponding converged Ind-AS standard Ind-AS 1






The types of income that exist and what the applicable standards and interpretations are (e.g., IAS 18,

IAS 11 or other)

When revenue should be recognised

How revenue is measured

The steps that should be followed for revenue recognition

When to separate components of a contract

The presentation and disclosure requirements

Revenue recognition



IAS 18 – Revenue recognition

IAS 11 – Construction contracts

IFRIC 13 – Customer royalty program

Comparison with corresponding converged Ind-AS standards Ind-AS 11 & 18






Business combination and identify transactions qualifying as business combination

How to identify the effective date, transactions that meet the definition of business and control

How to identify the acquirer in a business combination

How to determine the date of business combination/acquisition and the date on which the acquirer obtains

control of the acquiree

How to recognise all assets acquired, all liabilities, and any non- controlling interest in the acquiree at their

acquisition date fair values

How to determine the consideration transferred and goodwill or bargain purchase in a business combination

How to determine the amount of contingent consideration to be accounted as part of consideration transferred

The presentation and disclosure requirements related to business combinations and non-controlling interest

Business Combination



IFRS 3 – Business Combinations







The definition of financial instruments and different categories of financial instruments

The accounting for each of the categories of financial instruments

The definition of derivatives and an introduction to plain vanilla derivative products (options, swaps etc.)

and the overall accounting framework for derivatives

The concept of embedded derivatives (hybrid instruments)

The concept of „Hedging‟ by learning the three different types of hedging relationships and the key

accounting differences in those three different hedging relationships

The classification and disclosure of financial instruments

Financial instruments



IAS 39 – Financial instruments: recognition and measurement

IAS 32 – Financial instruments: disclosure and presentation

IFRS 7 – Financial instruments: disclosure

Comparison with corresponding converged Ind-AS standards Ind-AS 32, 39 and 107






How to distinguish different kinds of entities (subsidiaries, associates and joint ventures)

How to account for them

The principles of consolidation, equity accounting and proportionate consolidation

The consolidation disclosure requirements

Consolidation



IAS 27 – Consolidation and separate financial statements

IAS 28 – Investment in associates

IAS 31 – Interest in joint ventures

SIC 12 – Consolidation – Special purpose entities







How to determine a company‟s functional currency

How foreign currency transactions and balances are translated into a company‟s functional currency

How foreign currency financial statements are translated for consolidation purposes


The indicators of a hyperinflationary economy

The effect of change in foreign exchange rates



IAS 21 – The effect of change in foreign exchange rates







The concepts of current and deferred income taxes

How income taxes are accounted for by the asset / liability method

The concept of „temporary differences‟ and ascertain how these differences arise and how they need

to be accounted for

How to evaluate the appropriateness of recording valuation allowance against deferred tax assets

The presentation and disclosure requirements relating to current and deferred income taxes

Income taxes



IAS 12 – Income taxes







How to identify and account for intangible assets

How to identify and account for investment properties

The revaluation and cost models of accounting for property, plant and equipment (PPE), intangible

assets and investment property

How to account for changes in depreciation methods / useful life / residual value

The differences between repairs and maintenance, replacements and major inspections

How to account for changes in existing decommissioning, restoration and similar liabilities


Property, plant and equipment, Intangible assets and Investment property



IAS 16 – Property plant and equipment

IAS 38 – Intangible assets

IAS 40 – Investment property







The procedures that an entity applies to help determine that its assets are carried at no more than their

recoverable amount

The practical difficulties in applying this standard

The definition of a provision, contingent liability and contingent asset

The recognition and measurement criteria for provisions, contingent liabilities and contingent assets

The application of IAS 37 to specific circumstances

The presentation disclosure requirements

About the current developments – IASB & IFRIC – regarding IAS 37

Impairment and Provisions & contingencies



IAS 36 – Impairment

IAS 37 – Provision, contingent liabilities and contingent assets

Comparison with corresponding converged Ind-AS standards Ind-AS 36 and 37






The key application issues on employee benefits

The key application issues on share based payments

The key application issues on non current assets held for sale

The key application issues on discontinued operations

The key differences on the above topics with reference to Indian GAAP

Employee benefits, Share based payment, Non-current assets held for sale and discontinued operations



IAS 19 – Employee benefits

IFRS 2 – Share based payment

IFRS 5 – Non-current assets held for sale and discontinued operations







The key application issues on leasing including right to use

The key application issues on borrowing costs

The key application issues on operating segments

The key application issues on event occurring after the balance sheet date

The key application issues on change in accounting policies and errors

The key differences on the above topics with reference to Indian GAAP

Leases, borrowing costs, operating segments, events after the balance sheet date, change in accounting policies and errors



IAS 17 and IFRIC 4 – Leases and Determining whether an arrangement contains a lease

IAS 23 – Borrowing costs

IFRS 8 – Operating Segments

IAS 8 – Accounting policies, change in accounting estimates and errors

IAS 10 – Events after the reporting period

Comparison with corresponding converged Ind-AS standards Ind-AS 17, 23, 108, 8 and 10






How and when to start IFRS conversion

The different steps involved in IFRS conversion

The role of different stakeholders in the IFRS conversion

How to assess the impact of IFRS conversion on company existing financial reporting and practices

IFRS 1 – First time adoption of IFRS

Approach to IFRS Conversion



IFRS 1 – First time adoption of IFRS


KPMG approach to IFRS conversion






Course & Reference Material

Name of the book

Transitions to Ind AS- Practical Insights

Reporting Standards Edition 2011/12 - MRP: €155

Reference book – Presentation of Financial Statements,

Consolidation, Business Combination, Common Control

Transactions, Foreign Currency Translation

KPMG Publications - Common

IFRS: An Overview

Disclosure Checklist

Illustrative Financial Statements - The purpose of this publication is to

assist you in preparing financial statements in accordance with

International Financial Reporting Standards (IFRSs).

IFRS Developing Roadmap to Convergence

To know more call Us At 1800-266-0304 (Or)Write to [email protected].





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Industry Specific Reference Material

Industry Reference Material

Mining Mining Executive Summary

Airline Accounting for Leases of Aircraft Fleet Assets in the Global Airline Industry

Components of Aircraft Acquisition Cost Associated Depreciation and Impairment Testing in

the Global Air

Consumer

Goods The Application of IFRS on Consumer Good Sector

Pharma IFRS - KPMG's Pharmaceutical and Life Sciences IFRS Conversion Guide

IFRS and Pharmaceuticals Companies

Telecom IFRS Accounting in the Telecoms Industry

Banks IFRS Convergence for the Indian banking sector

IFRS-Illustrative-financial-statements

Media IFRS Practical Issues Accounting Strategies for the Media and Publishing Industries

Technology The Application of IFRS for Technology Companies

Oil & Gas IFRS-application on oil-gas

Power IFRS-application-power-utilities

Infrastructure Impact of IFRS on Infrastructure companies

Retail Impact of IFRS on Retail Sector



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Sample Certificate

To know more call Us At 1800-266-0304 (Or) Write to [email protected]


Other available programs

3.




32

Other Programs Available

Certificate Program on Tax Regulations

Advanced Certificate Program on Tax

Regulations

Diploma Program on Tax Regulations

Program Director and

Trainer Pool

4.




Ram Iyer – Program Director

34

Name Ram Iyer

Position Director, Accounting Advisory Services, KPMG in India

Qualifications Chartered Accountant

Experience

Ram is a chartered accountant and CPA. He is a Director in KPMG's Accounting Advisory

Services practice. Ram is experienced in the fields of audits and accounting including

Indian GAAP, US GAAP, IFRS and training.

He has served several prominent Indian corporates, including financial institutions, with

US GAAP and IFRS conversion. Ram also has significant training experience.

Ram has designed and presented U.S. GAAP, IFRS and Indian GAAP training to several

corporates, both multinational and Indian. He has also presented sessions at various

institutions and professional bodies.

Ram has led the global KPMG US GAAP internal training program development including

mapping IFRS differences. As part of this project, Ram has trained KPMG colleagues in

Western and Eastern Europe and Latin America. In addition, Ram has written articles on

international accounting in leading journals.

35




Sandip Khetan – Program Advisor

Name Sandip Khetan

Position Director, Accounting Advisory Services

Qualifications Member of the Institute of Chartered Accountants of India (14th Rank Holder all

India)

Experience

Sandip Khetan is a director in the Accounting Advisory Services of KPMG and is based

out of Delhi. He has more than 10 year of auditing and accounting experience. Sandip is

a member of the Institute of Chartered Accountants of India as well as an alumnus of IIM

Ahmedabad

Sandip has extensive audit experience spanning across a sector of industries including

IT/ITES, Media, Auto and Telecom dealing with US GAAP/GAAS and IFRS. He has

worked with both large Indian business houses and multinationals. He is the

engagement manager on a largest BPO company in India which is only domestic SEC

registrant from India. Sandip has gained significant experience of US GAAP and US

Capital market while managing the US IPO process of a large global company as based

out of India.

Sandip is an active participant in training initiatives and have conducted many training

session on US GAAP/ IFRS for clients and for different member firms (Dubai, Moscow,

Egypt) in the past.

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Trainer Pool (1/3)

Chandrasekhar B

Senior Manager

Chandrashekhar is an Associate Director in Accounting

Advisory Services („AAS‟). He specializes in providing audit

and accounting advisory services on IFRS conversion to

leading Indian and global companies. He is an active member

on the project for development of training material.

Vivek Sahni Manager

Vivek is a Manager in Accounting Advisory Services („AAS‟).

He has prior experience in Indian GAAP, IFRS and US GAAP.

He has been actively engaged in IFRS audit and advisory

engagements for listed entities in India and the United

Kingdom

37




Trainer Pool (2/3)

Surendra R

Manager

Surendra is a Manager in Accounting Advisory Services

(„AAS‟). Surendra has worked on various IFRS convergence

projects and is also actively involved in several IFRS training

programs. He also has significant work experience in the field

of audit in Indian GAAP, US GAAP and UK GAAP and has

also assisted in preparing financials of various companies for

IPO.

Surinder Jain Manager

Surinder is a Manager in Accounting Advisory Services

(„AAS‟). He has more than 6 years experience including a

significant experience in the field of IFRS and US GAAP. He

has been involved in IFRS trainings and several large and

medium size IFRS conversion projects.

38




Trainer Pool (3/3)

Manish Rathi Manager

Manish is a Manager in Accounting Advisory Services („AAS‟).

He has prior experience in Indian GAAP, IFRS and US GAAP

and has been actively engaged in IFRS advisory

engagements for listed and unlisted entities in India. He has

also been a trainer at several IFRS training programmes for

various clients.

About KPMG in India –

Accounting Advisory

Services

5.

40




Overview of KPMG in India

Youngest and the fastest growing Big

4 in India.

KPMG was established in India in September 1993 and today operates from nine offices across the country

The combined revenue of member firms of KPMG

International for the fiscal year ending September 30, 2009 was USD 20.11 billion

KPMG member firms combine 140,000 people across 144 countries led by 7953 Partners

Training is a focus area in KPMG and it is mandatory for all professionals to complete prescribed minimum training

hours

KPMG India has been providing US GAAP trainings to a number of KPMG Offices across

Europe and Asia. Over 15 trainings conducted in 2008

We also rotate staff to our overseas offices to enhance their knowledge and

utilize their experience in providing value

added services to clients in India

Provide services to over 5000 clients spanning multinationals and local public and private sector companies

KPMG was established in India in September 1993 and today operates from nine

offices across the country

MUMBAI

BANGALORE

CHENNAI

PUNE

KOLKATA

HYDERABAD

KOCHI

NEW DELHI

CHANDIGARH




41

KPMG in India Accounting Advisory Services – A profile

Profile

Qualifications: CA, CPA,

Graduates

Special skills

Professionals with industry

experience in all sectors

and experience on

accounting advisory,

training, audit, due diligence

and securities offering

assignments in India and

abroad.

People Solutions Practice highlights

Global Conversion Services

IPO Reporting Advisory

Post Deal Accounting Advisory

Accounting Advisory (Including

Loan Staff)

Fully accredited AAS practice

Fully aligned with global initiatives

Engaged with more than 100 IFRS projects

across sectors completed and ongoing

Multi-service line IFRS resource pool in

place (More than 130 IFRS resources)

Integrated IFRS Conversion Services

practice with professionals with experience

in accounting, processes and IT advisory

Leaders in providing training services under

IFRS and US GAAP

Successfully completed the largest

accounting restatement project in India

Leaders in assisting clients in implementing

new and complex accounting standards (for

example, AS-30)

Accounting advisory retainer arrangements

with several clients

Carve outs

Training Solutions

Restatement

Book keeping services

Due Diligence Support

Synchronous Learning –

NIIT Imperia

6.

43




NIIT Imperia – Technology Edge

26 Classrooms in 21 cities across India

Direct one-to-one interaction is fostered through individual

ICT systems for each student:

– High-performance PCs

– Webcam

– Audio system and microphone at each workstation,

connected directly to faculty at institutes

Classroom interactions & ambience are facilitated by

clusters of student-stations and camera & projection

systems that can span the full classroom.

6 Synchronous Learning Centers created within corporate

premises

Learning Management System (LMS):

– supplementary e-learning

– program-specific notices

– online submission of assignments

– reminder services

– online testing

– student records CLASSROOM

VIEW

STUDIO VIEW

44




Synchronous Learning

REPLICATION OF LIVE CLASSROOM

Full features of face-to-face teaching

Raised-hand-seeking-teacher's-attention

Link- Virtual Tour of Synchronous Learning

Tabulation of responses

Quizzes randomly created by the teacher

http://www.niitimperia.com/niit-imperia/video-gallery/center-for-advanced-learning-virtual-tour.html





Other details

7.

46




“"The program has helped me in getting a detailed knowledge about the application of IFRS

Standards its application and treatment of accounting records."

- Ajay Mukherjee, Divisional Controller F&A, Tata Steel Processing & Distribution Ltd.

What our earlier batch participants had to say about the program?

"The content is adequate and very informative. The faculty is experienced and teachers give lot of

practical examples, thereby the program is not monotonous."

- Anil Lamba, Head ,Finance & Accounting, Max Bupa Health Insurance Company Limited

"Well organized, effective learning, all the speakers were good, Specially Mr. Iyer, Mr. Khetan &

Mr. Kankani were very good."

- Ms. Yogini Medadkar, Manager ,Finance & Accounts, Soham Surface Coatings Pvt. Ltd.

"A well-structured program to give a holistic view of the IFRS on a macro level and some

relevant aspects of the workings of IFRS in the Indian context."

- Apurv Relan, Partner, Apurv Relan & Co., Chartered Accountant

47




How to apply

Application for the Batch will commence from July, 2011.

Limited Seats Availability

Application Period

Application forms can be obtained from

www.niitimperia.com or at local NIIT Imperia Centers

Application Forms

1 Passport size photo affixed [Latest photo with light

backdrop]

Documents Required for Application

Information Session

To attend information session about the program

Register Here

https://spreadsheets.google.com/spreadsheet/viewform?formkey=dGcxdFJxVGJNbzUyVG1fVE9FYzRxX0E6MQ

48




Important Points

•All fees are non-refundable; however if the program is delayed for

more than 3 weeks, the candidate is eligible to apply for a refund.

•The class dates shared above are tentative and are subject to

selection of threshold number of candidates.

•NIIT Imperia controls the extension or foreclosure of the applications

for the program subject to seat availability in our centres

49




Call Us At 1800-266-0304

(Or)

Write to [email protected]

Contact us

For further information

Thank You

© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a

Swiss entity. All rights reserved.

The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International").