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.
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.
To find out more on the UTAP funding and support validity period please click here.
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)
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.
Programme Facilitator(s)
