Discounting: an online course for practitioners

Discounting has been a hot topic among accountants lately, regardless of which standards are applied—IFRS, or P(S)BO. In fact, discounting is not just an accounting procedure; its scope of application is much broader, so regardless of the conceptual framework of accounting and reporting, EVERY ACCOUNTANT NEEDS TO KNOW THIS!

In addition, discounting has recently become a focus of close attention for tax authorities and other regulatory bodies. The reason is that discounting directly affects the tax base, government dividends, and, more broadly, a company’s financial results. Consequently, the “cost” of errors related to discounting has risen significantly in recent years, so we do not recommend delaying your study of discounting and its proper implementation in accounting.

The introduction of discounting—both during the transition to IFRS and with the amendments to the Accounting Standards—caught many accountants off guard. As a result, every accountant had to learn the techniques and methods of discounting, essentially from scratch. It is extremely important that your knowledge and skills in discounting be comprehensive, without any “blind spots” or “gaps.”

In this marathon series for you, we’ve covered the basics of discounting, options for addressing the challenge of selecting discount rates, and key situations in which the IFRS and Ukrainian Accounting Standards (PAS) require the use of discounting techniques. We’re ready to share clear examples, calculations, and accounting entries with you, so that you can be confident in your knowledge of applying discounting in accounting and continue to hone your professional skills in this area.

By postponing the issue of discounting and its proper implementation in accounting, you increase the risks of financial statement misstatement, distortion of financial results and the tax base, claims from auditors and regulatory authorities, and corresponding penalties.

We have systematized the fundamentals of discounting techniques, options for selecting and calculating discount rates, mandatory cases for applying discounting under Ukrainian Accounting Standards (PAS) and the International Financial Reporting Standards (IFRS), developed numerical examples illustrating the practical application of discounting, along with the corresponding account entries for each example, and created Excel spreadsheets for each numerical example from the webinar—all of which you’ll be able to use immediately after the webinar.

The key benefits of taking this online course:

12 academic hours of high-quality content focusing exclusively on the essentials of discounting
40+ numerical examples of discounting, including calculations and accounting entries
40+ Excel spreadsheets for each numerical example in the webinar, which you'll receive in digital format
a time savings of at least 80 hours on independently searching for and organizing key information regarding discount rates

Who will benefit from this webinar:

This webinar will be interesting and useful for chief accountants, accountants, CFOs, economists, and internal and external auditors.

Convenient payment options:

Pay using your preferred method (VISA or MasterCard, Privat24, via bank details, or by invoice).

Guarantees:

We guarantee a refund if you cancel your participation in the event at least 24 hours before it begins, or we will provide you with a recording at a time that is convenient for you.

“Discounting 1.0: Fundamentals + Workshop”

Why does discounting occur?
How is a lump-sum payment discounted to a future or past date?
How are a series of payments discounted to future and past dates?
How do you calculate interest rates for specific periods if only the annual rate is known?
How are simple and compound interest applied?
What does the classic discounting formula look like, and what does it consist of?
What are the derivative formulas for discounting?
How are discounting formulas applied in practice?
What is an annuity, and how is it used?
10 Rules of Discounting

“Discounting 2.0: Rates + Calculations”

What is a discount rate?
What approaches are there for determining the discount rate, and which of them can be used?
What do IFRS, the Ministry of Finance, and the Accounting Standards (P(S)BO) say about discount rates?
What are the sources of the NBU's refinancing rates?
What are the sources of OVDP rates, and can they be used?
What is a risk-free rate, and how is it calculated?
How is the rate calculated using the Capital Asset Pricing Model (CAPM)?
How is the weighted average cost of capital calculated?
What are the sources of the NBU's interest rates, and can they be used?
What is an “embedded rate,” and when is it equal to 0?
How do you calculate the “implicit discount rate,” and how does it work?
How is the effective interest rate determined?
What is wrong with the “Ukrainian” formula for the effective interest rate?
Why is there a difference between the nominal and effective interest rates?
How can I accurately calculate the rate specified in the contract?
How should discounting be reflected in accounting and financial reporting?
How many discount rates can a company use?

“Discounting 3.0: Application of Ukrainian Accounting Standards”

Why has discounting become relevant for Ukrainian Accounting Standards (PAS)?
What types of receivables are eligible for discounting?
How has the removal of interest from the revised version of the Ukrainian Accounting Standards (P(S)BO) affected Ukrainian accounting?
Is everything long-term discounted, and is it possible that there is no present value?
Which accounts are subject to discounting?
In what cases do the Accounting Standards require discounting?
How to Discount
- restructured debt?
- Collateral for the disposal of fixed assets?
- An interest-free loan to an employee? What if the employee has partially repaid it?
- Purchasing assets with deferred payment?
- Interest-free loans?
How can you use discounting to calculate the value in use of fixed assets?
Should we offer discounts to "little ones"?
What aspects of discounting are considered policy, and what are accounting estimates?
Is it possible to avoid discounting?

“Discounting 4.0: A Practical Guide IFRS”

How Can We Debunk the Myths About Discounting?
Which transactions require discounting under IFRS?
How to Discount

- Outstanding debt?
- Purchasing assets with deferred payment?
- Collateral for the disposal of fixed assets?
- Can an interest-free loan be granted to an employee if he has partially repaid it?
- Lease obligations?
- Long-term advances received (contracts with a significant financing component)?
- Financial instruments with non-market rates?
- Interest-free financial assistance?
- Provision for expected credit losses?
How can you use discounting to calculate the value in use of fixed assets?

Olena Kharlamova

Olena Viktorivna Kharlamova — Founder and CEO of AIFRS Group (IFRS Agency, Arkhitektonika IFRS, IFAR Academy — International Finance, Accounting & Reporting Academy (United Kingdom)), partner at MASBA Private Higher Educational Institution, Vice President of the All-Ukrainian Public Association “Chamber of Auditors and Accountants of Ukraine,” member of the Public Council under the Ministry of Finance of Ukraine, member of the expert group on developing the UA XBRL taxonomy IFRS under the National Securities and Stock Market Commission (NSSMC), auditor, ACCA_FR, ACCA DipIFR with a teaching certificate, ICFM diplomas in IFRS, management accounting, internal audit, and financial management (Institute of Certified Financial Managers (United Kingdom)), CAP, TOP-35-IFRS-Professional, winner of the ICB LUCA Awards 2023 in the category “Contribution to the Development of IFRS in Ukraine,” Doctor of Economics, professor, expert practitioner and advisor on IFRS with over 20 years of experience.