HKFRS 16 - Leases - Workshop 2020

Overview

The workshop aims to provide you with an insight and guidance into HKFRS 16 “Leases”. It will cover the key principles of the new lease accounting model for lessees, which is one of the key changes introduced by the new standard. It will also highlight some of the other areas of change under the new standard and will provide a refresher on the principles of lease accounting for lessors, which remains substantially unchanged from HKAS 17.

Key Topics Covered:

1. Definition of a lease

2. Lessee accounting and the single lease accounting model

• Recognition and measurement exemptions
• Initial measurement
• Subsequent measurement
• Lease modifications
• Presentation and disclosure

3. Lessor accounting and the dual lease accounting model

• Classification as a finance or operating lease
• Finance lease accounting
• Operating lease accounting
• Lease modifications

4. Sale and leaseback transactions

5. Overview of the transition options

Trainer profile:

Kamsuo Wong MA, LLM, MBA, FCPA (Aust.)

With three Master’s degrees under his belt, Kamsuo Wong, a candidate for a Doctorate degree of Education, is highly regarded as a multi-faceted academic backed by over fifteen years of extensive professional experience in accounting. He is a professional accountant in Hong Kong, United Kingdom and Australia and the member of Hong Kong Institute of Certified Public Accountants (CPA), Chartered Institute of Public Finance and Accountancy (CPFA), and CPA Australia (FCPA). He is also the Expert Council Advisor of International Financial Management Association. He is currently the Assistant Professor of Centennial College (an independent College established by University of Hong Kong), Adjunct Lecturer at a number of universities and tertiary education institutions.

Objectives

• Describe the definition of a lease contract and how to identify a lease contract
• Apply the recognition and measurement requirements of HKFRS 16 for both lessee and lessor accounting
• Explain the impact of lease modification and sale and leaseback transactions
• Exercise judgement in common areas of complexity in lease contracts for both lessees and lessors (such as the determination of lease payments and lease term)
• Understand the key areas of change under HKFRS 16 compared to HKAS 17

Audience

This workshop is suitable for finance professionals who are involved in external reporting, financial management, financial accounting or auditing. Other users of financial information will also find the workshop beneficial.