Course Detail(A048 : FRS 11 : Construction Contracts)

A048 : FRS 11 : Construction Contracts

3.50 CPE Hours (Category 1)
Classroom

Programme Objective

1) To provide a clear understanding on the underlying principles and rationale for the revenue recognition principles in FRS 11; and

2) To equip participants with the ability to apply the special revenue and cost allocation and recognition, measurement and disclosure requirements in FRS 11 to construction contracts. 

To ensure that participants are able to:

  • Understand the principles underlying the method of revenue recognition and reporting for construction contracts under FRS 11
  • Identify a construction contract
  • Analyze the conditions that will require combining or segmenting of construction contracts
  • Apply the percentage of completion method to determine contract revenue and contract expenses
  • Determine the outstanding balances in accordance with the requirements of FRS 11
  • Differentiate accounting for expected losses from accounting for profitable contracts
  • Identify the critical assumptions and sources of estimate uncertainty that lead to the change in estimate
  • Apply the cost recovery method appropriately
  • Present the appropriate disclosures to facilitate an understanding of the recognized amounts

Programme Outline

  • Objective and scope of FRS 11
  • Definitions
  • Identifying construction contracts
    • Combining
    • Segmenting
    • Significance of fixed-price and cost-plus contracts
  • Determining contract revenue
    • Identifying what contract revenue comprises of
    • Impact of variation orders and escalation clauses
    • Other arrangements that may affect the determination of contract revenue
    • Principles governing the determination of contract revenue
  • Determining contract costs
    • Identifying what contract costs comprises of
    • Specific contract costs
    • Costs attributable to contract activity
    • Distinguishing between costs that are included in construction contracts and those that are expensed off
    • Pre-contract costs
    • Other special issues
    • Principles governing recognition as an asset and expensing of costs
  • Recognition of contract revenue and contract costs
    • Percentage of completion or the stage of completion method
  • Conditions for the use of the method and critical estimates and assumptions
  • Bases to determine the percentage of completion
  • Allocation of contract revenue and contract costs
  • Accounting for progress billings
  • Accounting for the construction work-in-progress
  • Principles governing the allocation of contract revenue and contract costs
    • Recognition in different profit situations
  • Outcome can be reliably measured
  • Outcome cannot be reliably measured
  • Expected loss
  • Accounting for changes in estimates and changes in profit assumptions
  • Presentation and disclosures
    • Presentation on income statement and statement of financial position
    • Disclosures required by FRS 11


Training Methodology
Lecture style, with Exercises/Case Studies
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

A Foundation to Intermediate Level programme intended for Practising and Non-Practising Accountants who need to have an understanding of the accounting for construction contracts.

Competency Mapping

Category 1 = 3.50 Hours

Schedule & Fees

Date & Time

20 Nov 2017 (9:00 AM - 12:30 PM)

Registration is closed

Programme Facilitator(s)

Goh Kia Hong

Date & Time

04 May 2017 (9:00 AM - 12:30 PM)

Registration is closed

Programme Facilitator(s)

Goh Kia Hong

Date & Time

23 Nov 2016 (9:00 AM - 12:30 PM)

Registration is closed

Programme Facilitator(s)

Goh Kia Hong

Testimonial

Funding

No funding Available!

Programme Facilitator(s)


Kia Hong is a senior lecturer at Nanyang Business School (NBS) of Nanyang Technological University (NTU).  He is actively involved in curriculum and pedagogical development in the risk management and assurance courses that he teaches in the bachelor and master degree programmes.  His teaching accolades include the 2015 NBS Accountancy Teacher of the Year and 2015 NBS Teaching Excellence Award for Accounting Division.  He holds a Master of Science (Marketing) from NTU where he was awarded the Dean's Honours List. 

Before joining NTU, Kia Hong was an audit partner of a public accounting firm and had worked as chief executives of companies in Singapore and South Korea. His roles included formulating strategies to meet business objectives, enterprise risk management and leading the teams to ensure seamless operations of the businesses. During the same period, he taught in various public and private institutions in accounting, marketing and entrepreneurship on adjunct arrangements and proactively led the design and development of courses he taught.

Having accumulated a wealth of industry experience prior to joining the academia, he brings real-world insights into his classes, which participants are very appreciative of.
 

Kia Hong is an avid researcher who has published in professional journals and contributed articles to local print media. Kia Hong’s services extend beyond NTU. Notably, he is a regular speaker in the Accounting and Corporate Regulatory Authority (ACRA), the Institute of Singapore Chartered Accountants (ISCA) and Association of Chartered Certified Accountants (ACCA) major conferences and a trainer with ISCA’s continuing professional education. He also provides regular training, consultancy and research work to accounting firms and corporate organisations.  He is a member of ISCA’s judging panel for the prestigious Annual Report Award (ARA) under the Singapore Corporate Awards (SCA) and ISCA’s Investigation and disciplinary panel. He was previously a member of ISCA’s Auditing and Assurance Standards Committee and had worked with ISCA on ACRA’s Practice Monitoring Programme.

Kia Hong is currently the Chairman of Bukit Merah Secondary School Advisory Committee and was awarded the Service to Education Awards by the Ministry of Education in 2006 and 2011.  He is a member of the Inquiry Panel, the body responsible for appointing members of the Review Committees and Inquiry Committees investigating complaints made against advocates and solicitors. He is also a member of Mensa Singapore.
 

Programme Objective

1) To provide a clear understanding on the underlying principles and rationale for the revenue recognition principles in FRS 11; and

2) To equip participants with the ability to apply the special revenue and cost allocation and recognition, measurement and disclosure requirements in FRS 11 to construction contracts. 

To ensure that participants are able to:

  • Understand the principles underlying the method of revenue recognition and reporting for construction contracts under FRS 11
  • Identify a construction contract
  • Analyze the conditions that will require combining or segmenting of construction contracts
  • Apply the percentage of completion method to determine contract revenue and contract expenses
  • Determine the outstanding balances in accordance with the requirements of FRS 11
  • Differentiate accounting for expected losses from accounting for profitable contracts
  • Identify the critical assumptions and sources of estimate uncertainty that lead to the change in estimate
  • Apply the cost recovery method appropriately
  • Present the appropriate disclosures to facilitate an understanding of the recognized amounts

Programme Outline

  • Objective and scope of FRS 11
  • Definitions
  • Identifying construction contracts
    • Combining
    • Segmenting
    • Significance of fixed-price and cost-plus contracts
  • Determining contract revenue
    • Identifying what contract revenue comprises of
    • Impact of variation orders and escalation clauses
    • Other arrangements that may affect the determination of contract revenue
    • Principles governing the determination of contract revenue
  • Determining contract costs
    • Identifying what contract costs comprises of
    • Specific contract costs
    • Costs attributable to contract activity
    • Distinguishing between costs that are included in construction contracts and those that are expensed off
    • Pre-contract costs
    • Other special issues
    • Principles governing recognition as an asset and expensing of costs
  • Recognition of contract revenue and contract costs
    • Percentage of completion or the stage of completion method
  • Conditions for the use of the method and critical estimates and assumptions
  • Bases to determine the percentage of completion
  • Allocation of contract revenue and contract costs
  • Accounting for progress billings
  • Accounting for the construction work-in-progress
  • Principles governing the allocation of contract revenue and contract costs
    • Recognition in different profit situations
  • Outcome can be reliably measured
  • Outcome cannot be reliably measured
  • Expected loss
  • Accounting for changes in estimates and changes in profit assumptions
  • Presentation and disclosures
    • Presentation on income statement and statement of financial position
    • Disclosures required by FRS 11


Training Methodology
Lecture style, with Exercises/Case Studies
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

A Foundation to Intermediate Level programme intended for Practising and Non-Practising Accountants who need to have an understanding of the accounting for construction contracts.

Competency Mapping

Category 1 = 3.50 Hours

Programme Facilitator(s)

Kia Hong is a senior lecturer at Nanyang Business School (NBS) of Nanyang Technological University (NTU).  He is actively involved in curriculum and pedagogical development in the risk management and assurance courses that he teaches in the bachelor and master degree programmes.  His teaching accolades include the 2015 NBS Accountancy Teacher of the Year and 2015 NBS Teaching Excellence Award for Accounting Division.  He holds a Master of Science (Marketing) from NTU where he was awarded the Dean's Honours List. 

Before joining NTU, Kia Hong was an audit partner of a public accounting firm and had worked as chief executives of companies in Singapore and South Korea. His roles included formulating strategies to meet business objectives, enterprise risk management and leading the teams to ensure seamless operations of the businesses. During the same period, he taught in various public and private institutions in accounting, marketing and entrepreneurship on adjunct arrangements and proactively led the design and development of courses he taught.

Having accumulated a wealth of industry experience prior to joining the academia, he brings real-world insights into his classes, which participants are very appreciative of.
 

Kia Hong is an avid researcher who has published in professional journals and contributed articles to local print media. Kia Hong’s services extend beyond NTU. Notably, he is a regular speaker in the Accounting and Corporate Regulatory Authority (ACRA), the Institute of Singapore Chartered Accountants (ISCA) and Association of Chartered Certified Accountants (ACCA) major conferences and a trainer with ISCA’s continuing professional education. He also provides regular training, consultancy and research work to accounting firms and corporate organisations.  He is a member of ISCA’s judging panel for the prestigious Annual Report Award (ARA) under the Singapore Corporate Awards (SCA) and ISCA’s Investigation and disciplinary panel. He was previously a member of ISCA’s Auditing and Assurance Standards Committee and had worked with ISCA on ACRA’s Practice Monitoring Programme.

Kia Hong is currently the Chairman of Bukit Merah Secondary School Advisory Committee and was awarded the Service to Education Awards by the Ministry of Education in 2006 and 2011.  He is a member of the Inquiry Panel, the body responsible for appointing members of the Review Committees and Inquiry Committees investigating complaints made against advocates and solicitors. He is also a member of Mensa Singapore.
 

Upcoming Schedule

Registration is closed

Date & Time

20 Nov 2017 (9:00 AM - 12:30 PM)

Fee (inclusive of GST)

For Members: $ 199.02
For Non-Members: $ 237.54

Programme Facilitator(s)

Goh Kia Hong

Venue

60 Cecil Street
ISCA House
Singapore 049709