Course Detail(A247v : IFRS 16/ FRS 116 Leases: A Deeper Dive into the New Rules & Avoid the Pitfalls (Live Webinar))

SDF Funding, SkillsFuture Credit, UTAP Funding

A247v : IFRS 16/ FRS 116 Leases: A Deeper Dive into the New Rules & Avoid the Pitfalls (Live Webinar)

7.00 CPE Hours (Category 1)
Live Webinar

The format of this course is a Live Webinar. A detailed set of instructions on the Live Webinar will be sent to you closer to date.
 

Introduction
 
Assets and liabilities arising from finance leases have historically been reported on the balance sheet, while the rights and obligation of operating leases are off the balance sheet. The new approach to lease accounting, often referred to as the “Right-Of-Use” model differs substantially from the current standard.
 
Effective January 2019, the new Standard prescribed a ‘single lessee model’ that require lessee to recognise lease assets, arising from the contractual rights to use the resources for a specified period of time, and the corresponding obligation to pay for that rights as lease liabilities on the balance sheet. The new requirements will inevitably impose a new reporting burden and have significant impact on an entity’s financial position, financial performance, gearing and capital ratios, cash flow.
 
Programme Objective
 
This seminar presents a comprehensive analysis of the technical requirements of the IFRS 16/ FRS 116 for Lease Accounting. It provides a detailed understanding of the changes from current Standards to the New Standard, analysing the logic, implications and problem areas to watch out for.
 
The seminar will enable you to assess the impact of the New Standard on the business decision to make arrangement to acquire the rights to use  resources and the impact of the contractual terms that may have significant impact on the reported financial position, financial performance and cash flows of your company. Discover the best ways to handle the new rules and avoid the pitfalls. Learn what you need to do NOW to prepare for the new changes.

Programme Outline


The Overall Technical Issues

  • New Principles
    • Scope of coverage and interaction with other Standards
    • Identifying a lease contract
    • Identifying and accounting for short-term lease and low value lease
    • Separating components of a lease contract for lessee and lessor
    • Handling complex lease terms and understanding their impact on financial statements
    • Introduction to the new principles on sale and leaseback transactions

 
Accounting for Lessee

  • Recognition principles
    • When to recognise a “lease liability” and a “right-of-use asset”
  • Measurement principles for initial and subsequent accounting
    • Lease obligations and right-of-use assets
    • Reassessment of lease liability
    • Amortization and impairment of the right-of-use assets
  • Presentation and disclosure of lease liabilities and right-of-use assets
  • Practical illustrations on setting up the ledger accounts
  • Examine the impact on financial statements and ratios analysis
  • Transitional provisions for lessee

 
Accounting for Lessor

  • Determining whether a lease is a finance lease or an operating lease
  • Finance Lease
    • Recognising and measuring the lease receivable assets
    • Initial measurement of the amount of net investment in lease
    • Subsequent recognition of finance income over the lease term
    • Presentation and disclosure of lease receivable assets
  • Operating lease
    • How to recognise the income of an operating lease
    • Recogniton and measurement of the underlying assets
    • Depreciation or amortisation of the underlying assets
    • Presentation and disclosure of the underlying assets subject to operating lease

 
Special Consideration for Granting a Lease of Property

  • Lessee
    • How to classify and account for right-of-use property
    • Lessee granting a sub-lease of the right-of-use property
  • Lessor
    • Granting a head-lease lease of property
    • Granting a sub-lease of property
  • Classification consideration for both Lessee and Lessor:
    • Whether to classify in accordance with IAS 40 Investment Property or IAS 16 Property, Plant and Equipment

 
Sale and Lease Back Transactions for Both Seller-Lessee and Buyer-Lessor

  • Deciding whether a transfer of asset is a sale (Application of SB-FRS115 Revenue from contracts with customers)
  • Accounting treatments for both seller-lessee and buyer-lessor for:
    • Transfer of an asset that is a sale
      • Accounting treatment where fair value sale consideration does not equal to fair value of the assets
    • Transfer of asset that is not a sale

 
Transitional provision

  • Transition and disclosure requirements for lessee


Pre-requisites

Please take note of the following admission requirements:

  • Trainings will be conducted on Zoom platform, thus video camera and microphone are compulsory
  • Mandatory for video camera to be turned on throughout the course
  • Display your official name (as per NRIC) in Zoom, to facilitate attendance taking

Training Methodology
 Lecture style, with Practical illustrations and Interactive discussion
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

An intermediate programme suitable for Accounting and Audit professionals.

Competency Mapping

Category 1 = 7.00 Hours

Schedule & Fees

Date & Time

08 Jul 2022 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 345.61   $ 276.49
For Non-Members: $ 415.16   $ 332.13
Discount till 31 Dec 2022

Programme Facilitator(s)

Danny Tan

Venue

Online Classroom in or outside of
Singapore

Date & Time

06 Oct 2022 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 345.61   $ 276.49
For Non-Members: $ 415.16   $ 332.13
Discount till 31 Dec 2022

Programme Facilitator(s)

Danny Tan

Venue

Online Classroom in or outside of
Singapore

Testimonial

Funding

1] SkillsFuture Credit (SFC)
Funding Period: Until 31 Aug 2023
Course Reference Number: TGS-2020505515

All Singaporeans aged 25 and above will receive an opening credit of S$500 from the government. You may wish to use your SFC to pay for partial/full ISCA course fees. 

On 1 Oct 2020, the Government provided a one-off SkillsFuture Credit Top-up of $500 for all eligible Singaporeans aged 25 or above by 31 Dec 2020. Singaporeans aged 40 to 60 by 31 Dec 2020 will also receive an Additional SkillsFuture Credit (Mid-Career Support) of $500 which can be used for courses under: (i) SGUnited Skills Programme, (ii) SGUnited Mid-Career Pathways Programme – Company Training, and (iii) Career Transition Programmes. This additional SFC (Mid-Career Support) is NOT applicable for use on ISCA courses. (For more information on the SFC scheme, please visit www.myskillsfuture.gov.sg)

If you wish to enrol for the course with SFC Funding, please proceed with the following steps:

Failure to submit claim application and obtain necessary approval before the course start date will result in topping up of the SFC indicated for use. Please note that there will be an administrative fee of $42.80 for any revision of invoice.


2] WDA Training Grant - SDF Funding
This course is approved for SDF funding ($2 per training hour) for Company-sponsored participants only (Eligibility criteria apply). 

Funding Period: Until 31 Aug 2023
Funded Hours: 7 hours
Course Reference Number: TGS-2020505515

If you wish to enrol participants with SDF Funding, please proceed with the following steps (For Corporate enrolments only) :

  • Step 1: Register for the course online via ISCA Portal. Upon adding to cart, the system will prompt a question “Do you wish to apply for WDA Funding?”, click Yes and input all required information. At the Cart page, please ensure that SDF funding is applied before clicking “Checkout”.
     

 

For course run start date before 1 Nov 2020, submit training grant application in SCN until 30 Nov 2020.

For course run start date on or after 1 Nov 2020, Enterprises/employers are NOT required to log into TPGateway/SCN to submit training grant.

Remarks

Step 2: After receiving email that the programme status is confirmed, please proceed to submit the Training Grant application via SkillsConnect Portal (https://www.skillsconnect.gov.sg/).

Employers of company-sponsored participants must submit training grant via SkillsConnect to obtain training grant for course fees. You may submit the Training Grant application within the period from 30 days before the course start date to 30 days after course start date.

The employee’s enrolment, attendance and assessment recordswill be submitted by ISCA onto TPGateway.


Please note that there will be an administrative fee of $42.80 for any revision of invoice.

Eligibility Criteria:

  • Company must be registered or incorporated in Singapore and;
  • Applicant is taking the course for the first time.
  • Applicant must be employed, and is either Singapore Citizen or Permanent Resident of Singapore and;
  • Applicant must achieve at least 75% attendance, and pass all examinations /assessments and;
  • Applicant must be fully sponsored by the Company for all costs associated with the training and;
  • Payment has to be made via corporate means (e.g. corporate cheque, corporate GIRO, corporate credit card).

3] 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 1 July 2020 to 31 December 2022. *This excludes miscellaneous fees such as GST and registration fee etc.
 
To find out more on the UTAP support validity period, please click here.
 
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)


Danny Tan

Danny has over 30 years of experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny specialises in International Financial Reporting Standards (IFRSs) and in the last 15 years he is a partner of a firm providing training and consulting in the areas of preparing and presenting financial statements in accordance with IFRSs.


Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia. He is a fellow member of Chartered Instituted of Management Accountants, a fellow member of Association of Chartered Certified Accountants, a member of Malaysian Institute of Accountants and an associate member of Chartered Tax Institute of Malaysia.
 

The format of this course is a Live Webinar. A detailed set of instructions on the Live Webinar will be sent to you closer to date.
 

Introduction
 
Assets and liabilities arising from finance leases have historically been reported on the balance sheet, while the rights and obligation of operating leases are off the balance sheet. The new approach to lease accounting, often referred to as the “Right-Of-Use” model differs substantially from the current standard.
 
Effective January 2019, the new Standard prescribed a ‘single lessee model’ that require lessee to recognise lease assets, arising from the contractual rights to use the resources for a specified period of time, and the corresponding obligation to pay for that rights as lease liabilities on the balance sheet. The new requirements will inevitably impose a new reporting burden and have significant impact on an entity’s financial position, financial performance, gearing and capital ratios, cash flow.
 
Programme Objective
 
This seminar presents a comprehensive analysis of the technical requirements of the IFRS 16/ FRS 116 for Lease Accounting. It provides a detailed understanding of the changes from current Standards to the New Standard, analysing the logic, implications and problem areas to watch out for.
 
The seminar will enable you to assess the impact of the New Standard on the business decision to make arrangement to acquire the rights to use  resources and the impact of the contractual terms that may have significant impact on the reported financial position, financial performance and cash flows of your company. Discover the best ways to handle the new rules and avoid the pitfalls. Learn what you need to do NOW to prepare for the new changes.

Programme Outline


The Overall Technical Issues

  • New Principles
    • Scope of coverage and interaction with other Standards
    • Identifying a lease contract
    • Identifying and accounting for short-term lease and low value lease
    • Separating components of a lease contract for lessee and lessor
    • Handling complex lease terms and understanding their impact on financial statements
    • Introduction to the new principles on sale and leaseback transactions

 
Accounting for Lessee

  • Recognition principles
    • When to recognise a “lease liability” and a “right-of-use asset”
  • Measurement principles for initial and subsequent accounting
    • Lease obligations and right-of-use assets
    • Reassessment of lease liability
    • Amortization and impairment of the right-of-use assets
  • Presentation and disclosure of lease liabilities and right-of-use assets
  • Practical illustrations on setting up the ledger accounts
  • Examine the impact on financial statements and ratios analysis
  • Transitional provisions for lessee

 
Accounting for Lessor

  • Determining whether a lease is a finance lease or an operating lease
  • Finance Lease
    • Recognising and measuring the lease receivable assets
    • Initial measurement of the amount of net investment in lease
    • Subsequent recognition of finance income over the lease term
    • Presentation and disclosure of lease receivable assets
  • Operating lease
    • How to recognise the income of an operating lease
    • Recogniton and measurement of the underlying assets
    • Depreciation or amortisation of the underlying assets
    • Presentation and disclosure of the underlying assets subject to operating lease

 
Special Consideration for Granting a Lease of Property

  • Lessee
    • How to classify and account for right-of-use property
    • Lessee granting a sub-lease of the right-of-use property
  • Lessor
    • Granting a head-lease lease of property
    • Granting a sub-lease of property
  • Classification consideration for both Lessee and Lessor:
    • Whether to classify in accordance with IAS 40 Investment Property or IAS 16 Property, Plant and Equipment

 
Sale and Lease Back Transactions for Both Seller-Lessee and Buyer-Lessor

  • Deciding whether a transfer of asset is a sale (Application of SB-FRS115 Revenue from contracts with customers)
  • Accounting treatments for both seller-lessee and buyer-lessor for:
    • Transfer of an asset that is a sale
      • Accounting treatment where fair value sale consideration does not equal to fair value of the assets
    • Transfer of asset that is not a sale

 
Transitional provision

  • Transition and disclosure requirements for lessee


Pre-requisites

Please take note of the following admission requirements:

  • Trainings will be conducted on Zoom platform, thus video camera and microphone are compulsory
  • Mandatory for video camera to be turned on throughout the course
  • Display your official name (as per NRIC) in Zoom, to facilitate attendance taking

Training Methodology
 Lecture style, with Practical illustrations and Interactive discussion
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

An intermediate programme suitable for Accounting and Audit professionals.

Competency Mapping

Category 1 = 7.00 Hours

Programme Facilitator(s)

Danny Tan

Danny has over 30 years of experience in public practice, commerce and industry. He was trained with a firm of Chartered Accountants in London where he worked for over 10 years in the audit and consultancy. He also held the positions of business development and business operation manager with two UK multinational companies based in London for 5 years. Danny specialises in International Financial Reporting Standards (IFRSs) and in the last 15 years he is a partner of a firm providing training and consulting in the areas of preparing and presenting financial statements in accordance with IFRSs.


Danny holds an Honours Degree in Economics (major in finance and investment) from Manchester Metropolitan University (UK), MBA from Heriot-Watt University (UK) and Master in Advance Business Practice from University of South Australia. He is a fellow member of Chartered Instituted of Management Accountants, a fellow member of Association of Chartered Certified Accountants, a member of Malaysian Institute of Accountants and an associate member of Chartered Tax Institute of Malaysia.
 

Upcoming Schedule

Date & Time

08 Jul 2022 (9:00 AM - 5:00 PM)

Fee (inclusive of GST)

For Members: $ 345.61   $ 276.49
For Non-Members: $ 415.16   $ 332.13
Discount till 31 Dec 2022

Programme Facilitator(s)

Danny Tan

Venue

Online Classroom in or outside of
Singapore