International Financial Reporting Standards for Compensation Professionals

International Financial Reporting Standards for Compensation Professionals

International Financial Reporting Standards for Compensation Professionals
Exam Material
Exam Info

This certificate concerns the International Financial Reporting Standards (IFRS). It will prove that you have a full understanding about how to interact effectively with accounting and finance departments in your company.

To pass the exam, you need to:

  • Explore an overview of IFRS and the International Accounting Standards Board (IASB).
  • Understand the objectives of financial reporting and how to identify and work with key stakeholders.
  • Determine how financial statements relate to your compensation and benefits work.
  • Examine International Accounting Standard 19 (IAS 19) short- and long-term benefits, as well as post-employment and termination benefits.

Topics and skills of the exam:

 

1. Introduction to the IASB and the IFRS

  • The objectives of the IASB
  • The structure of the standard setting body and sub-committees
  • The conceptual framework
  • The IAS and IFRS standards

2. Objectives of Financial Reporting

  • Relationship between the conceptual framework and stakeholders
  • Providing information to the stakeholders of the organization
  • Who are the stakeholders?

3. Financial Statements

  • Content of the key financial statements
    • Statement of financial position
    • Statement of income
    • Statement of other comprehensive income
    • Statement of cash flows
    • Notes accompanying the accounts - the true source of information

4. IAS 19 Purpose and Scope

  • Concept of accrual accounting
  • Basic principle that the cost of providing employee benefits should be recognized in the period in which the benefit is earned by the employee, rather than when it is paid or payable
  • How is this done?

5. IAS 19 Short-Term Employee Benefits

  • Definition
  • Types of short-term benefit
  • Benefits that accrue
  • Benefits that do not accrue
  • Profit sharing and bonus plans
  • Accounting treatment for short-term benefits
  • Practical examples of treatments

6. IAS 19 Types of Post Employment Benefit Plans

  • IAS 19 Features of a defined benefit plan
    • Calculating the liability of a defined benefit plan
    • Accounting treatment of a defined contribution plan
    • Practical examples of treatment
  • IAS 19 Features of a defined benefit plan
    • Calculating the liability of a defined contribution plan
    • Methods of calculation including the reliance on actuarial and financial assumptions
    • Discounted cash flow techniques. Issues to be addressed, such as what is the appropriate discount rate

7. IAS 19 Other long-term benefits

  • Accounting treatment of other long-term benefits
  • Benefits that are immediately expensed
  • Benefits that are accrued

8. IAS 19 Termination Benefits

  • Categories of benefits that qualify and the conditions that determine these categories
  • Determination of the conditions for a plan
  • Treatment of the benefits provision/payments
Exam Skills

Certification Exam: International Financial Reporting Standards for Compensation Professionals

Exam TypeCertification
Exam CodeT7
Duration2 hours
Number Of Question70
Success Score70%
Price150$
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Evaluation Exam: International Financial Reporting Standards for Compensation Professionals

Exam TypeEvaluation
Exam CodeT7-eval
Duration1 hour
Number Of Question35
Success Score70%
Price40$
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