Course Detail()
Not Available

UTAP Funding

3.50 CPE Hours (Category 1, Category 2, Category 3, Category 4Category 5, Others)
Live Webinar

This course focuses on the specific nuances involved in goodwill impairment testing, including understanding the differences between Value in Use (VIU) and Fair Value Less Cost of Disposal (FVLCOD), and their respective considerations when performing DCF calculations. 

Participants will gain the skills to critically assess management's assumptions in financial projections and understand key considerations when computing the discount rate.

At the end of this course, you will be able to:

  • Apply the step-by-step process for performing goodwill impairment testing under FRS 36, including identifying Cash Generating Units (CGUs) correctly;
  • Determine recoverable amount using both Value in Use (VIU) and Fair Value Less Cost of Disposal (FVLCOD) approaches;
  • Evaluate management's cash flow projections and underlying assumptions;
  • Compute pre-tax and post-tax discount rates, understand their relationship, and ensure equivalency basis between carrying amount and recoverable amount of CGUs; and
  • Navigate practical challenges in implementing impairment tests in the current economic environment.

Programme Outline

  • Overview of FRS 36 Requirements
    • Scope and objectives
    • Key definitions and concepts
    • Testing frequency and triggering events
  •  Understand Cash Generating Units (CGUs) 
    • Definition and identification of CGUs
    • Testing level for goodwill
    • Allocation of corporate assets
    • Practical considerations in CGU determination
  • Determine Value in Use (VIU)
    • Cash flow projections and their basis
    • Assessment of management assumptions
    • Calculating Free Cash Flows to Firm
    • Terminal value calculations
    • Specific requirements for VIU 
  • Determine Fair Value Less Cost of Disposal (FVLCOD)
    • Market participant perspective
    • Valuation approaches (market and DCF)
    • Treatment of synergies and enhancements
    • Cost of disposal considerations
  • Discount Rate Considerations 
    • Components of WACC 
    • Pre-tax vs post-tax discount rates
  • Carrying Amount vs Recoverable Amount 
    • Equivalency basis principles
    • Corporate asset allocation
    • Common pitfalls to avoid
  • Case Studies and Practical Examples
     

Training Methodology

Lecture style with case studies, examples, and exercises

Closing Date for Registration

1 week before programme or until full enrolment

Intended For

This course is designed for auditors working with clients involved in goodwill impairment testing, as well as finance managers and controllers. It is also suitable for valuation specialists, financial advisory professionals, and finance professionals engaged in financial reporting and valuation work.

Schedule & Fees

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 01 April 2024 and 31 March 2027. *This excludes miscellaneous fees such as GST and registration fee etc.
 
This course is approved for UTAP support for intakes conducted between 28 May 2025 – 31 March 2027.
 
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)

This course focuses on the specific nuances involved in goodwill impairment testing, including understanding the differences between Value in Use (VIU) and Fair Value Less Cost of Disposal (FVLCOD), and their respective considerations when performing DCF calculations. 

Participants will gain the skills to critically assess management's assumptions in financial projections and understand key considerations when computing the discount rate.

At the end of this course, you will be able to:

  • Apply the step-by-step process for performing goodwill impairment testing under FRS 36, including identifying Cash Generating Units (CGUs) correctly;
  • Determine recoverable amount using both Value in Use (VIU) and Fair Value Less Cost of Disposal (FVLCOD) approaches;
  • Evaluate management's cash flow projections and underlying assumptions;
  • Compute pre-tax and post-tax discount rates, understand their relationship, and ensure equivalency basis between carrying amount and recoverable amount of CGUs; and
  • Navigate practical challenges in implementing impairment tests in the current economic environment.

Programme Outline

  • Overview of FRS 36 Requirements
    • Scope and objectives
    • Key definitions and concepts
    • Testing frequency and triggering events
  •  Understand Cash Generating Units (CGUs) 
    • Definition and identification of CGUs
    • Testing level for goodwill
    • Allocation of corporate assets
    • Practical considerations in CGU determination
  • Determine Value in Use (VIU)
    • Cash flow projections and their basis
    • Assessment of management assumptions
    • Calculating Free Cash Flows to Firm
    • Terminal value calculations
    • Specific requirements for VIU 
  • Determine Fair Value Less Cost of Disposal (FVLCOD)
    • Market participant perspective
    • Valuation approaches (market and DCF)
    • Treatment of synergies and enhancements
    • Cost of disposal considerations
  • Discount Rate Considerations 
    • Components of WACC 
    • Pre-tax vs post-tax discount rates
  • Carrying Amount vs Recoverable Amount 
    • Equivalency basis principles
    • Corporate asset allocation
    • Common pitfalls to avoid
  • Case Studies and Practical Examples
     

Training Methodology

Lecture style with case studies, examples, and exercises

Closing Date for Registration

1 week before programme or until full enrolment

Intended For

This course is designed for auditors working with clients involved in goodwill impairment testing, as well as finance managers and controllers. It is also suitable for valuation specialists, financial advisory professionals, and finance professionals engaged in financial reporting and valuation work.

Programme Facilitator(s)


No course instances or course instance sessions available.