Introduction
Recognising an asset and simultaneously recognising a corresponding liability are often the most frequent transactions and events that create these two element of financial statements.
Standard setters have implemented numerous Standards that deal with the principles of recognising and measuring assets and liabilities. Each of these Standards often interrelates to each other in their application and can be daunting to operate in practice.   Preparers and users of financial statements need to equip themselves with comprehensive knowledge of the various Standards in order to understand and manage the complicated accounting requirements for assets and liabilities.
 
Programme Objective
This seminar takes a holistic approach to accounting for debit (assets) and (credit) liabilities. It uses mini case study to illustrate the interrelationship between accounting for these two elements as well as practical guide to enhance better understanding of the salient features of each Standard listed in the contents and also their interaction with each other.
 
 The seminar covers the following issues:

• The interrelationship between recognition and measurement principles of assets and liabilities

• The methods and options that are permitted for managing assets and liabilities under various Standards

• How measurement of a liability can affect the measurement of an asset or vice versa

• Classification and measurement of financial assets and financial liabilities

Programme Outline

Contents

General principles under “the framework”
 

• Definition of assets and liabilities
• Recognition and derecognition criteria by assessing:
  • probable inflow/outflow of future economic benefits
  • reliability of measurement
  • contractual rights and obligations
• Measurement bases
  • Historical cost; Current cost; Realisable value; Present value; Fair Value
  • Dealing with initial and subsequent measurement

 
Principle of accounting for specific assets and liabilities
 

• Provisions, Contingent Liabilities and Contingent Assets
  • Dealing with contingent liabilities and Contingent assets
  • Dealing with provisions:
    • Dealing with future operating losses, onerous contracts and corporate restructuring
    • Change in provision and the use of provision
    • Warranties and other sales-related obligations
    • Third-party reimbursements

 

• Leases
  • Identifying a leasing contract
  • For lessee: accounting for right-of-use assets and corresponding lease liabilities
  • For lessor: accounting for operating lease and financial lease and its effect on assets and liabilities
  • Dealing with leasehold property classified as investment property

 

• Property plant and equipment (PPE)
  • Components of PPE: Determining items and parts
  • Transfer and reclassification
  • Depreciation: determining useful life; depreciation method; residual value
  • Accounting for cost model and revaluation model
  • Dealing with ‘Changes in Existing Decommissioning, Restoration & Similar Liabilities’

 

• Investment property
  • Identifying investment property
  • The impact of fair value model and cost model
  • Dealing with investment properties in group of companies
  • Dealing with transfers to/from from other categories of assets

 

• Intangible assets
  • Internally generated goodwill and intangible assets
  • Amortisation of intangible with finite and indefinite useful life
  • Cost model and revaluation model
  • Dealing with web site costs
  • Dealing with service concession assets

 

• Dealing with financial assets and financial liabilities
  • Recognition and derecognition of financial assets and liabilities
  • Initial classification and subsequent measurement of financial assets and financial liabilities
  • Accounting for financial assets and liabilities measured at fair value model or amortised cost model
  • Offset of financial assets and financial liabilities
  • Distinguishing liability from equity  

 
Recognition and measurement principles for various assets and liabilities:

• Understanding assets and liabilities arising from revenue from contracts with customers (Contract assets, contract liabilities and contract costs)
• Procedure of capitalisation of borrowing costs into assets
• Assets and liability arising from government grant (non-financial grant and below market interest rate borrowing from government)
• Accounting for goodwill and impairment of goodwill
• Deferred Tax Assets and liabilities: recognition and measurement
• Accounting for investment in subsidiaries, associates and Joint ventures
• The effect of foreign exchange in the valuation of assets and liabilities
• Introduction to accounting for “Biological Assets”
• Non-current assets held for sale and distribution

 
The principles for impairment of assets

• Examining the impairment requirement for various assets recognised on the financial statements

 
 
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 accounting and interrelationship between assets and liabilities are welcome to attend.

Programme Facilitator(s)