Course Detail(A218 : FRS 116 (IFRS 16) Leases (Case Study Approach))

A218 : FRS 116 (IFRS 16) Leases (Case Study Approach)

7.00 CPE Hours (Category 1)
Classroom


Programme Objective
 
The release of FRS 116 (IFRS 16) Leases dramatically changes how lessees account for leases.  For lessees there will be no more operating leases and all leases come on a balance sheet in the form of a right of use asset and a financial liability.
 
Accountants may see a simple adoption process, but the recognition, measurement, presentation and disclosure requirements have been completely overhauled and a lease is no longer evaluated only at inception, so the need to continuously track the leases is now added.
 
FRS 116 (IFRS 16) Leases is effective from 1 January 2019, but early adoption is allowed and many are taking that route to align with their FRS 115 (IFRS 15) and FRS 109 (IFRS 9) adoption in 2018.
 

Programme Outline


Overview of the New Standard
 

  • What is a lease?
  • Is the contract a lease, service contract or combined contract?
  • What about leases of low value items or short term leases?
  • How to determine the value of the right of use asset and financial liability?
  • What interest rate to use?
  • How to determine the lease term?

 
Case Study 1:  Applying the new standard to equipment. 
 
Using the lease of an aircraft we will examine issues to include:

  • Determine the lease term
  • Determine the value of the financial liability and right of use asset
  • Calculate the depreciation and interest for the period
  • Establish the journal entries
  • Determine how the two adoption elections would impact an existing lease

 
Case Study 2:  Applying the new standard to a lease of land and building.
 
Using the lease of a land and building we will examine issues to include:

  • Determine the lease term
  • Determine the value of the financial liability and right of use asset
  • Calculate the depreciation and interest for the period
  • Establish the journal entries
  • Determine how to treat a sublease

 
Implementation Challenges
 

  • What if you modify the lease?
  • How is foreign exchange translation of the financial liability treated?
  • How do you recognize restoration costs in the ROU asset?
  • How are Sale and leaseback transactions treated?
  • Presentation and Disclosure Impact
Training Methodology
 
Lecture style, with Case Studies
 

Closing Date for Registration
 
1 week before programme or until full enrolment

Intended For

An Intermediate level programme intended for both Practising and Non-Practising Accountants and Auditors.

Competency Mapping

Category 1 = 7.00 Hours

Schedule & Fees

Date & Time

29 Jan 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

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

Programme Facilitator(s)

Thomas Egan

Venue

60 Cecil Street
ISCA House
Singapore 049709

Date & Time

07 Dec 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Thomas Egan

Date & Time

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

Registration is closed

Programme Facilitator(s)

Thomas Egan

Date & Time

31 Jan 2019 (9:00 AM - 5:00 PM)

Registration is closed

Programme Facilitator(s)

Thomas Egan

Testimonial

Funding

No funding Available!

Programme Facilitator(s)


Thomas Egan

Tom is a member of ISCA, as well as ACCA, CPA Australia and is a licensed US CPA.  He serves on a number of committees related to accounting standards, financial reporting, and XBRL.  He has extensive experience related to accounting for financial instruments gained through the past 18 years in technical accounting roles with a Big 4 firm and an international bank and is currently the accounting advisor to the airline industry for implementation of IFRS 9, Financial Instruments, IFRS 15, Revenue and IFRS 16, Leases.  He holds a Masters degree in accounting from the University of Wisconsin - Madison and a Postgraduate Diploma in Strategic Finance from the University of Oxford.
 


Programme Objective
 
The release of FRS 116 (IFRS 16) Leases dramatically changes how lessees account for leases.  For lessees there will be no more operating leases and all leases come on a balance sheet in the form of a right of use asset and a financial liability.
 
Accountants may see a simple adoption process, but the recognition, measurement, presentation and disclosure requirements have been completely overhauled and a lease is no longer evaluated only at inception, so the need to continuously track the leases is now added.
 
FRS 116 (IFRS 16) Leases is effective from 1 January 2019, but early adoption is allowed and many are taking that route to align with their FRS 115 (IFRS 15) and FRS 109 (IFRS 9) adoption in 2018.
 

Programme Outline


Overview of the New Standard
 

  • What is a lease?
  • Is the contract a lease, service contract or combined contract?
  • What about leases of low value items or short term leases?
  • How to determine the value of the right of use asset and financial liability?
  • What interest rate to use?
  • How to determine the lease term?

 
Case Study 1:  Applying the new standard to equipment. 
 
Using the lease of an aircraft we will examine issues to include:

  • Determine the lease term
  • Determine the value of the financial liability and right of use asset
  • Calculate the depreciation and interest for the period
  • Establish the journal entries
  • Determine how the two adoption elections would impact an existing lease

 
Case Study 2:  Applying the new standard to a lease of land and building.
 
Using the lease of a land and building we will examine issues to include:

  • Determine the lease term
  • Determine the value of the financial liability and right of use asset
  • Calculate the depreciation and interest for the period
  • Establish the journal entries
  • Determine how to treat a sublease

 
Implementation Challenges
 

  • What if you modify the lease?
  • How is foreign exchange translation of the financial liability treated?
  • How do you recognize restoration costs in the ROU asset?
  • How are Sale and leaseback transactions treated?
  • Presentation and Disclosure Impact
Training Methodology
 
Lecture style, with Case Studies
 

Closing Date for Registration
 
1 week before programme or until full enrolment

Intended For

An Intermediate level programme intended for both Practising and Non-Practising Accountants and Auditors.

Competency Mapping

Category 1 = 7.00 Hours

Programme Facilitator(s)

Thomas Egan

Tom is a member of ISCA, as well as ACCA, CPA Australia and is a licensed US CPA.  He serves on a number of committees related to accounting standards, financial reporting, and XBRL.  He has extensive experience related to accounting for financial instruments gained through the past 18 years in technical accounting roles with a Big 4 firm and an international bank and is currently the accounting advisor to the airline industry for implementation of IFRS 9, Financial Instruments, IFRS 15, Revenue and IFRS 16, Leases.  He holds a Masters degree in accounting from the University of Wisconsin - Madison and a Postgraduate Diploma in Strategic Finance from the University of Oxford.
 

Upcoming Schedule

Date & Time

29 Jan 2020 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

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

Programme Facilitator(s)

Thomas Egan

Venue

60 Cecil Street
ISCA House
Singapore 049709