Financial Reporting Suite: Impairment of Assets (FRS 36) - Workshop SG 2019

Impairment of long-lived assets was one of the areas with the highest instances of non-compliance identified by ACRA in their most recent Financial Reporting Surveillance Programme (FRSP). This is also an area of focus for FY 2017 under ACRA’s Financial Reporting Practice Guidance No. 1 of 2018. Gain a comprehensive understanding of FRS 36 Impairment of Assets including identifying indicators of impairment, understanding valuation approaches, applying commonly used valuation methods, preparing supportable forecasts and estimating an appropriate discount rate.

My Offerings

Overview

Impairment of long-lived assets was one of the areas with the highest instances of non-compliance identified by ACRA in their most recent Financial Reporting Surveillance Programme (FRSP). This is also an area of focus for FY 2017 under ACRA’s Financial Reporting Practice Guidance No. 1 of 2018.

Recently, SingPost suffered an impairment charge of S$209 million for FY 2017. Assessment of impairment of goodwill and fixed assets commonly feature as a key audit matter. As a fundamental aspect of the financial reporting process, impairment review plays an important role because goodwill is subject to annual impairment assessment.

Gain a comprehensive understanding of FRS 36 Impairment of Assets including identifying indicators of impairment, understanding valuation approaches, applying commonly used valuation methods, preparing supportable forecasts and estimating an appropriate discount rate.

The objective is not only to equip you with technical knowledge, but also to develop skills to compute value in use and fair value at a practical level.

Key Topics Covered:

  • Objective, scope and basic principles of FRS 36 Impairment of Assets
  • Identifying assets that may be impaired
  • Measuring recoverable amount
  • Identifying Cash Generating Units (CGUs) and impairment decision tree
  • Measuring fair value less cost of disposal
  • Factors to consider in fair value measurement
  • Considerations specific to non-financial assets
  • Valuation techniques i.e. market, income and cost approach
  • Principles for selecting valuation techniques
  • Commonly used valuation methods for non-financial assets
  • Calculating value in use
  • Estimating future cash flows
  • Traditional and expected cash flow approaches
  • Inflation and foreign currency cash flows
  • Discount rate
  • Establishing the carrying amount of CGUs
  • Recognition of impairment losses


Trainer Profile:

Ong Woon Pheng

Woon Pheng has been in the accounting and finance profession since 2001 and he is currently Director of the Financial Advisory Services department at PKF-CAP, a member firm of PKF International Limited.


Over the years, Woon Pheng has worked on numerous types of engagements including, routine accounting, financial reporting, business valuation, valuation for financial reporting, corporate secretarial, corporate and personal taxation, forensic accounting, litigation support, internal audit, merger and acquisition transactions, financial due diligence, liquidation and corporate restructuring.


As an adjunct faculty of SUSS, University of Portsmouth, Murdoch University and Kaplan, Woon Pheng teaches business valuation, financial reporting and corporate finance related subjects for the Masters, CFA, Degree and Diploma programmes.

Objectives

  • Identify indicators of impairment
  • Understand valuation approaches and apply commonly used valuation methods
  • Prepare supportable forecasts and estimate an appropriate discount rate
  • Compute and allocate impairment loss

Audience

This workshop is suitable for Auditors, Accountants, Financial Controllers, CFOs and Audit committee members.

Details

90699515

1 day

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