Course Detail(A135 : Accounting for Obligations)

UTAP Funding

A135 : Accounting for Obligations

7.00 CPE Hours (Category 1)
Classroom

In view of the COVID-19 situation, selected ISCA’s CPE courses/sessions will be conducting via Live Webinar.

Please do check the details before confirmation your registration for the course/session.


Introduction
Obligations of an entity can arise due to legal form such as contractual relationship or operation of law and legislation. Such obligation are often determined and accounted for as a liability in accordance to its legal form (e.g. financial instruments). However, some obligations arise due to economic substance such as constructive obligation (e.g. bonus or voluntary payment of damages), or as a result of litigation (e.g. law suit against the entity for damages). Such obligations are more difficult to identify and measured. These obligations need to be classified as either a provision or a contingent liability. The accounting for provisions, contingencies and financial liabilities often requires the application of complex recognition and measurement rules that can have a significant impact on an entity’s reported financial performance and financial position. These issues are inherently complex and are still undergoing significant changes.

Programme Objectives
This course provides comprehensive and up-to-date coverage of FRSs that govern the disclosure, presentation, recognition and valuation of liabilities. These liabilities include items such as provisions, contingencies, asset retirement obligations, restructuring obligation, financial liabilities, and liabilities arising from events after the reporting period.

Programme Outline

Contents
1. Obligations – non-financial liabilities (FRS 37)

  • Provisions
    • The differences between provision and other liabilities
    • Examining the conditions for recognising a provision:
      • Existence of past event that is an obligating event
      • Existence of present obligation
      • Probable outflow of resources embodying economic benefits
      • Reliable estimate of the obligation
    • Issues to be considered when measuring provision:
      • Using best estimate; Risk and uncertainties; Present value; Future event; Expected disposal of assets
    • Examining the problem of future operating losses, onerous contracts and corporate restructuring
    • Managing provision in future period where there is a change in provision and how to use the provision
    • Examining the information to be disclose for provision
    • Handling third-party reimbursements: Recognition, measurement, presentation and disclosure
    • Asset retirement obligations: (Covering Int. FRS 101 Changes in Existing Decommission, Restoration and Similar Liabilities)
    • Warranties and other sales-related obligations
    • Changes in contingent liabilities or provisions
  • Contingent liabilities
    • Probable obligation Vs. Possible obligation
    • Disclosure issues

 
2. Obligation - Financial Liabilities (FRS39, FRS32 and FRS107)

  • Distinguishing liability from equity
  • Classification of compound instruments
  • Offsetting assets and liabilities
  • Liquidity risk profile
  • Off-balance sheet obligations
  • Recognition and de-recognition criteria for financial liabilities
  • Disclosure of fair value and key assumptions
  • Potable financial instruments at fair value and obligations arising on liquidation
  • Financial guarantee and commitments

 
 
3. The Effects of Event After The Reporting Period on Obligations (FRS10)
Recognition and measurement:

  • How to identigy adjusting and non-adjusting events after the reporting period  
  • Dealing with dividends and going concern issues

Disclosure:

  • Date of authorisation for issue
  • Updating disclosure about conditions at the end of the reporting period

Non-adjusting events after the reporting period
 
 
Training Methodology
Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions.
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course that examines the impact of obligations leading to recognition of liabilities on the financial statements are welcome to attend.

Competency Mapping

Category 1 = 7.00 Hours

Schedule & Fees

Date & Time

25 Sep 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Date & Time

25 Sep 2018 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Date & Time

25 Oct 2017 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Danny Tan

Testimonial

Funding

1] NTUC Union Training Assistance Programme (UTAP)
UTAP (Union Training Assistance Programme) is an individual skills upgrading account for NTUC members.

NTUC members enjoy 50% *unfunded course fee support for up to $250 each year when you sign up for courses supported under UTAP. NTUC members aged 40 and above can enjoy higher funding support up to $500 per individual each year, capped at 50% of unfunded course fees, for courses attended between 1 July 2020 to 31 December 2022. *This excludes miscellaneous fees such as GST and registration fee etc.
 
This course is approved for UTAP support for intakes conducted between 01 April 2020 – 31 March 2021.
 
As UTAP is given on calendar year basis, and calculated based on year of training taken, it cannot be accumulated.

  • Maintained paid-up NTUC membership before course, throughout course duration and at the point of claim and;
  • Course by training provider must be supported under UTAP and training must commence within the supported period and;
  • Unfunded course fee must not be fully sponsored by company or other types of funding
  • Unfunded course fee must be S$20.00 and above, and;
  • Member must achieve a minimum of 75% attendance for each application and sat for all prescribed examination(s), if any and;
  • UTAP application must be made within 6 months after course ends.

To submit for UTAP claims, please visit http://skillsupgrade.ntuc.org.sg/. Terms and conditions apply.
Should you have queries on the funding scheme, you can email to UTAP@e2i.com.sg or call NTUC Membership Hotline at 6213-8008

Programme Facilitator(s)


Danny Tan

Danny has over 30 years of experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny specialises in International Financial Reporting Standards (IFRSs) and in the last 15 years he is a partner of a firm providing training and consulting in the areas of preparing and presenting financial statements in accordance with IFRSs.


Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia. He is a fellow member of Chartered Instituted of Management Accountants, a fellow member of Association of Chartered Certified Accountants, a member of Malaysian Institute of Accountants and an associate member of Chartered Tax Institute of Malaysia.
 

In view of the COVID-19 situation, selected ISCA’s CPE courses/sessions will be conducting via Live Webinar.

Please do check the details before confirmation your registration for the course/session.


Introduction
Obligations of an entity can arise due to legal form such as contractual relationship or operation of law and legislation. Such obligation are often determined and accounted for as a liability in accordance to its legal form (e.g. financial instruments). However, some obligations arise due to economic substance such as constructive obligation (e.g. bonus or voluntary payment of damages), or as a result of litigation (e.g. law suit against the entity for damages). Such obligations are more difficult to identify and measured. These obligations need to be classified as either a provision or a contingent liability. The accounting for provisions, contingencies and financial liabilities often requires the application of complex recognition and measurement rules that can have a significant impact on an entity’s reported financial performance and financial position. These issues are inherently complex and are still undergoing significant changes.

Programme Objectives
This course provides comprehensive and up-to-date coverage of FRSs that govern the disclosure, presentation, recognition and valuation of liabilities. These liabilities include items such as provisions, contingencies, asset retirement obligations, restructuring obligation, financial liabilities, and liabilities arising from events after the reporting period.

Programme Outline

Contents
1. Obligations – non-financial liabilities (FRS 37)

  • Provisions
    • The differences between provision and other liabilities
    • Examining the conditions for recognising a provision:
      • Existence of past event that is an obligating event
      • Existence of present obligation
      • Probable outflow of resources embodying economic benefits
      • Reliable estimate of the obligation
    • Issues to be considered when measuring provision:
      • Using best estimate; Risk and uncertainties; Present value; Future event; Expected disposal of assets
    • Examining the problem of future operating losses, onerous contracts and corporate restructuring
    • Managing provision in future period where there is a change in provision and how to use the provision
    • Examining the information to be disclose for provision
    • Handling third-party reimbursements: Recognition, measurement, presentation and disclosure
    • Asset retirement obligations: (Covering Int. FRS 101 Changes in Existing Decommission, Restoration and Similar Liabilities)
    • Warranties and other sales-related obligations
    • Changes in contingent liabilities or provisions
  • Contingent liabilities
    • Probable obligation Vs. Possible obligation
    • Disclosure issues

 
2. Obligation - Financial Liabilities (FRS39, FRS32 and FRS107)

  • Distinguishing liability from equity
  • Classification of compound instruments
  • Offsetting assets and liabilities
  • Liquidity risk profile
  • Off-balance sheet obligations
  • Recognition and de-recognition criteria for financial liabilities
  • Disclosure of fair value and key assumptions
  • Potable financial instruments at fair value and obligations arising on liquidation
  • Financial guarantee and commitments

 
 
3. The Effects of Event After The Reporting Period on Obligations (FRS10)
Recognition and measurement:

  • How to identigy adjusting and non-adjusting events after the reporting period  
  • Dealing with dividends and going concern issues

Disclosure:

  • Date of authorisation for issue
  • Updating disclosure about conditions at the end of the reporting period

Non-adjusting events after the reporting period
 
 
Training Methodology
Lecture style, with practical illustrations, technical flow-charts, conceptual “mind maps” and interactive discussions.
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

This programme is suitable for all Finance Professionals, Audit Professionals, Members of Audit Committee, Finance Directors and Regulators. Those who are keen on attending a practical course that examines the impact of obligations leading to recognition of liabilities on the financial statements are welcome to attend.

Competency Mapping

Category 1 = 7.00 Hours

Programme Facilitator(s)

Danny Tan

Danny has over 30 years of experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny specialises in International Financial Reporting Standards (IFRSs) and in the last 15 years he is a partner of a firm providing training and consulting in the areas of preparing and presenting financial statements in accordance with IFRSs.


Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia. He is a fellow member of Chartered Instituted of Management Accountants, a fellow member of Association of Chartered Certified Accountants, a member of Malaysian Institute of Accountants and an associate member of Chartered Tax Institute of Malaysia.
 

Upcoming Schedule

Registration is closed

Date & Time

25 Sep 2019 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 345.61
For Non-Members: $ 415.16

Programme Facilitator(s)

Danny Tan

Venue

60 Cecil Street
ISCA House
Singapore 049709