Accounting for construction contracts, real estate and property development - Workshop 2016

With the adoption of the new IFRS 15, this progran will divide the discussion as follows :
• Before 1/1/2018 (before IFRS 15)
• After 1/1/2018 – incorporating the major effects of IFRS 15

The program will cover the following outline:

FRS 11 CONSTRUCTION CONTRACTS
The primary issue in construction contracts is the allocation of contract revenue and contract costs to the accounting periods in which construction work is performed because construction activities usually take place over more than one accounting period.

The course will cover an overview of the following areas :
• Combining and Segmenting Construction Contracts
• Contract Revenue
• Contract Costs
• Recognition of Contract Revenue and Expenses
• Recognition of Expected Losses
• Changes in Estimates
• Disclosure requirements
• Case Studies using excel spreadsheet

INT FRS 115 AGREEMENTS FOR THE CONSTRUCTION OF REAL ESTATE
INT FRS 115 prescribes the accounting treatment for revenue, costs and land held for future development in the financial statements of an entity undertaking real estate and property development activities.

• Property Development Revenue and Expenses
• Estimates, Revocation of Sales and Incentives
• Inventories – Unsold Completed Development Units
• Disclosure requirements
• Case Studies using excel spreadsheet

FRS 23 Borrowing Costs
The objective of this standard is to prescribe the accounting treatment for interest and other costs incurred by an enterprise in connection with the borrowing of funds.
• Benchmark treatment for borrowing costs
• Borrowing costs eligible for capitalisation
• Commencement, suspension and cessation of capitalisation
• Disclosure requirements

IFRS 15 Revenue from contracts with customers
Highlights the financial impact of IFRS 15 on the accounting of revenue arising from construction contracts and real estate and property development activities
• Identifying the contracts
• Performance obligations
• Measurement principles

Learning objectives

This program aims to discuss the important accounting principles of the relevant accounting standards, and to highlight the major areas of difficulty in measuring and recognising revenue and costs associated with construction contracts and real estate and property development activities, and the proper accounting treatment of finance costs arising from borrowings used to finance these activities.

The highlights of this seminar would be on the usage of a format (excel spreadsheet) for the computation of important figures such as the stage of completion, revenue and cost recognition, etc. This standard format is very effective as it is easy to understand and apply. It also ensures that the figures computed are in compliance with the requirements of the reporting standards.  Hear insights from the following subject matter expert:

Lim Geok Heng
Geok Heng is a Fellow member of the Association of Chartered Certified Accountants and a Chartered Accountant of the Malaysian Institute of Accountants. She is also a Certified Professional Trainer (CPT, IPMA, UK). She has over 31 years’ experience in areas comprising auditing, financial accounting, treasury functions, education and training. Her most recent past appointments include the positions of Chief Technical and Training Officer of a medium-sized accounting firm, Training Manager of Ernst & Young, Lecturer in Sunway University College and Senior Lecturer in Tunku Abdul Rahman College. She speaks on MASB Reporting Standards and accounting and audit issues regularly throughout Malaysia for CPA Australia, ACCA, CIMA, MAICSA, MIA and MICPA.

Audience

This program is recommended for Finance Managers, Financial Accountants, Cost accountants, Management Accountants, Financial Auditors, Financial Analysts and users of financial statements.