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(Formerly A224:Fair Valuation of Financial Instruments: Fundamental Concerns & Issues)

Programme Objective

This programme provides an overview on fair value accounting and some of the difficulties relating to the fair value measurement process. Other topics covered include fair value accounting and its implications for auditors as well as an understanding of the controversy surrounding fair value accounting for liabilities. We will also discuss some of the major controversies surrounding fair value accounting using a case study approach from notable examples such as Wells Fargo, Deustche Bank and Goldman Sachs. In the local context, we will explore how fair value accounting impacts the financial results in Noble Group with regard to the valuation of its derivative contracts as well as the recent case involving Hyflux Ltd over the restructuring of its company debt.

Programme Outline

(1) Apply the key concepts and principles of the fair value measurement process
(2) Understand why fair value accounting is such a controversial topic to the accounting profession

(3) Discuss the audit implications relating to fair value accounting

(4) Analyze real world examples surrounding some of the major fair value accounting controversies and how do firms deal with it

(5) Examine fundamental measurement difficulties regarding Level 2 and Level 3 assets and its implications to the audit profession

(6) Discuss pertinent issues about fair value accounting for liabilities and its effects on the financial statements

For this seminar, we will use provisions from the following Financial Reporting Standards (FRS):
FRS109 – Financial Instruments
FRS 113 – Fair value measurements

Training Methodology

Lectures, facilitated by Powerpoint presentation, discussions, case studies, and sharing of practical situations.

Closing Date for Registration

1 week before programme or until full enrolment.

Intended For

Accountants, Auditors, Preparers of financial statements, Financial Controllers.

Programme Facilitator(s)