RSM Al­bazie & Co holds IFRS sem­i­nar in Kuwait

IFRS 9 to have great­est im­pact on fi­nan­cial in­sti­tu­tions

Kuwait Times - - BUSINESS -

RSM Al­bazie & Co, a mem­ber of the sixth largest net­work of in­de­pen­dent au­dit, tax and con­sult­ing firms ‘RSM In­ter­na­tional’, re­cently hosted an In­ter­na­tional Fi­nan­cial Re­port­ing Stan­dards (IFRS) sem­i­nar for its key clients at Mar­riott Court­yard. The in­ten­sive two­day sem­i­nar was con­ducted by Peter Thatcher, a UK-based spe­cial­ist in IFRS train­ing cour­ses and Chan­dra Sekaran, part­ner at RSM Kuwait who has more than 25 years of ex­pe­ri­ence de­liv­er­ing IFRS train­ing pro­grams across the world.

Ac­count­ing pro­fes­sion­als from cor­po­rate en­ti­ties such as Com­mer­cial Bank of Kuwait, KFH Cap­i­tal In­vest­ment Co, Kuwait Busi­ness Town Real Es­tate, KCPC, Oula Fuel Mar­ket­ing, Al-Mazaya Hold­ing Co, KIPCO, KAMCO, Se­cu­ri­ties Group Co along with key per­son­nel from RSM Al­bazie & Co were able to dis­cover and un­der­stand the changes and mod­i­fi­ca­tions in the IFRS frame­work which wit­nessed up­dates in the fol­low­ing sec­tions: * IFRS 9 - Fi­nan­cial in­stru­ments * IFRS 13 - Fair Value Mea­sure­ment * IFRS 15 - Rev­enue from Con­tracts with Cus­tomers * IFRS 16 - Leases

Dur­ing the sem­i­nar, Peter Thatcher, the main speaker, high­lighted the ma­jor prac­ti­cal chal­lenges that com­pa­nies in Kuwait may face when they im­ple­ment

Peter Thatcher

these new IFRS in 2018 and 2019. In par­tic­u­lar, IFRS 9 is likely to have the great­est im­pact on fi­nan­cial in­sti­tu­tions. These com­pa­nies were ad­vised to con­sider care­fully the clas­si­fi­ca­tion of their in­vest­ments, which may need to be val­ued on a dif­fer­ent ba­sis, and the im­pact on their an­nual prof­its, which may be­come more volatile year on year.

An­nual prof­its of fi­nan­cial in­sti­tu­tions may also be af­fected by the new ap­proach to rec­og­niz­ing the risk of their loan as­sets not be­ing col­lected as ex­pected. IFRS 15 may im­pact the tim­ing of rev­enue recog­ni­tion in com­pa­nies’ in­come state­ments which may, in turn, af­fect re­ported prof­its.

Com­pa­nies op­er­at­ing in the con­struc­tion and soft­ware devel­op­ment in­dus­tries are among those most likely to be af­fected.

The new IFRS 16 will af­fect all com­pa­nies who lease as­sets as it will re­quire those com­pa­nies to rec­og­nize as­sets and li­a­bil­i­ties that have pre­vi­ously re­mained ‘off-bal­ance sheet’.

Both speak­ers high­lighted the im­por­tance of com­pa­nies get­ting ready for the prac­ti­cal and fi­nan­cial re­port­ing con­se­quences of these changes as early as pos­si­ble and to en­gage with their stake­hold­ers through nor­mal com­mu­ni­ca­tion chan­nels.”

As per the min­is­te­rial de­cree of Kuwait, IFRS needs to be fol­lowed by all the com­pa­nies in­cor­po­rated in Kuwait. Com­ment­ing on this oc­ca­sion, Dr Shuaib Shuaib, Man­ag­ing Part­ner at RSM Al­bazie & Co said: “The In­ter­na­tional Fi­nan­cial Re­port­ing Stan­dards (IFRS) is both glob­ally and lo­cally the most ac­cepted ac­count­ing frame­work today. It is im­per­a­tive that our clients and our key per­son­nel at RSM are up-to-date with the new de­vel­op­ments within the frame­work”.

RSM Al­bazie & Co has worked with clients from var­i­ous in­dus­tries which in­clude, Banks Con­struc­tion and Real Es­tate, Hos­pi­tal­ity, Avi­a­tion, Oil and Gas, Bank­ing and Fi­nan­cial Ser­vices and Health­care amongst oth­ers. Es­tab­lished in 1963, RSM Al­bazie & Co is con­sid­ered to be among the old­est ac­count­ing and ad­vi­sory firms in Kuwait, with more than 50 years of ex­pe­ri­ence.

Par­tic­i­pants of the IFRS sem­i­nar.

Dr Shuaib Shuaib

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.