FRS 116, ‘Leases’, replaces the current guidance in FRS 17. Under FRS 16, lessees have to recognise a lease liability reflecting future lease payments and a ‘right-of-use asset’ for almost all lease contracts. This is a significant change compared to FRS 17 under which lessees were required to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). FRS 116 contains an optional exemption for certain short-term leases and leases of low-value assets; however, this exemption can only be applied by lessees. This new lease standard will be required for reporting periods beginning on or after 1 January 2019.
This workshop comprises lecture-cum-discussions, Q&A sessions, examples and case studies.
Key Topics Covered:
• Overview of FRS 115
• Differences in concepts between FRS 18, FRS 11 and FRS 115
• Key concepts which forms the foundation of FRS 115
• Performance obligation criteria
• What constitutes a contract
• The role of distinct in revenue contracts
• Application of variable considerations and its measurement
• Allocation methods for multiple performance obligations
3. Satisfaction of performance obligation
• Concept of control when performance obligation is satisfied
• Criteria for satisfaction of performance obligation satisfied over time and at a point in time
4. Contract cost
• Contract cost guidance
• Presentation and disclosures
5. Overview of FRS 116
• What has changed from FRS 17
• The changes to lessee accounting
• Measurement of lease liability
• Measurement of right of use asset
• Accounting for exempt leases
This workshop is part of the Financial Reporting Suite and is eligible for a 10% off workshop fees for sign-ups of 2 workshops in the suite.
Enter code FRS10 at checkout.
Oh Ai Sim
Ms Oh Has over 21 years of audit related experience with a big four accounting firm. Her portfolio of clients includes public listed entities and multinational corporations covering the following industries: retailing, manufacturing, trading, property development and construction. She also conducted in-house and client training covering FRS and audit related topics.
• Gain an understand of the significant changes from a practical perspective
• Apply these standards to different business settings
This workshop is suitable for Accountants, Financial Managers, Finance Controllers and anyone who is interested in the key SFRS requirements and its application.