FRS 116 (IFRS 16) Leases, effective 1 Jan 2019, dramatically changed how lessees account for leases. Although preparers and users have become familiar with applying FRS116, there are still numerous  challenges faced when applying the standard.
 
Through a case study on property lease, this workshop e will examine the recognition, measurement, presentation and disclosure requirements of FRS 116 and focus on the subsequent guidance from the IASB and IFRIC, as well as look at practice for issues that remain unclear.


At the end of the session, participants will be able to

• Understand the requirements in FRS 116 regarding  lease recognition, measurement, and disclosure;
• Apply FRS116 to real-world leases through journal entries and calculations;
• Analyse lease modifications, subleases, and sale-leaseback transactions; and
• Evaluate the impact of assumption changes;

Describe the differences in accounting treatment in FRS 116 and US GAAP
 

Programme Outline

Overview of FRS 116

• Core principles, scope, and definitions
• Recognition, measurement, presentation, and disclosure

Case Study: Property Lease

• Lease term determination
• Measuring lease liability and ROU asset
• Calculating depreciation and interest
• Remeasurement due to assumption changes
• Journal entries

US GAAP Comparison

• Differences in balance sheet, income statement, and cash flows
• Impacts to analysts and preparers

Complex Post-Implementation Issues

• Free rent, lease modifications, VAT/GST
• Subleases, restoration costs, mutual options
• Sale and leaseback treatment
• Leasehold improvements and depreciation

Training Methodology*

Closing Date for Registration*

Intended For

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

Programme Facilitator(s)