COVID-19 Accounting Essentials : FRS 116 Amendment and the Accounting for Job Support Scheme (On Demand)

Description

The Accounting Standards Council (ASC) of Singapore has issued an Amendment to SFRS (I) 16 and an Amendment to FRS 116 on Covid-19-Related Rent Concessions. The amendment applies for annual reporting periods beginning on or after 1 June 2020. Earlier application is permitted.

The webinar will also cover the accounting for the Job Support Scheme (JSS) introduced by Singapore government who will co-fund the wages of local employees for nine months. A case will be used to illustrate the accounting for this government including the recognition criteria and timing, the double entries and the presentation and disclosure of JSS.

Programme Outline

Scope of FRS 116 Amendment

The scope of the amendment and the conditions that must be met for the practical expedients to be applicable and the following common questions relating to the scope of the practical expedients:

  • Could a rent concession that increases total lease payments be in the scope of the practical expedient?
  • Could reductions in lease payments that extend beyond 30 June 2021 be in the scope of the practical expedient?
  • What is considered a ‘substantive’ change to the other terms and conditions of the lease?
  • Could changing lease payments from fixed to variable be eligible for the practical expedient?

Measurement

The measurement and accounting for any change in lease payments resulting from the rent concession including the following common questions:

  • How does a lessee account for a reduction in lease payments if it elects the practical expedient?
  • Does a lessee recognise the gain from a reduction in lease payments all at once or over time?
  • How does a lessee account for a deferral of lease payments?
  • Does a lessee continue to recognise interest expense on the lease liability when it elects to apply the practical expedient?
  • Does applying the practical expedient have any effect on the accounting for the right-of-use asset?

Presentation and Disclosure

  • What are the specific qualitative disclosures required for COVID-19-related rent concessions?
  • What are the specific quantitative disclosures for COVID-19-related rent concessions?
  • What disclosures might a lessee have to make related to the cash flow statement?
  • What other disclosures should a lessee consider making related to COVID-19 rent concessions?
  • Where should negative variable lease payments, arising from COVID-19-related rent concessions where the lessee has elected the practical expedient, be presented in the statement of comprehensive income?

Transition

  • Can an entity apply the practical expedient in its 31 March 2020 annual financial statements if they had not been authorised for issue by 28 May 2020?

Accounting for the Job Support Scheme (JSS)

  • The recognition criteria and timing
  • The double entries
  • The presentation and disclosure of JSS
  • Case Examples

This workshop qualifies for 1.5 CPE hours in Financial Reporting Standards and Pronouncements (Category 1).

Target Audience

Accountants and Auditors

Expert Speaker

Chee Hay Kheong Daniel

Daniel holds an Honours degree in Accountancy from the National University of Singapore and is a Certified Information Systems Auditor (CISA). He has more than 13 years of experience in the accounting profession, having worked for one of the Big 4 accounting firms both in Singapore and in the United Kingdom. He has also more than 5 years of senior management experience with MNCs, managing their operations in Singapore and Asia.

Daniel is a highly sought-after seminar trainer, and is currently an Adjunct Professor in the School of Business, Singapore University of Social Sciences. Prior to this, he was an Adjunct Associate Professor in the Department of Accounting of the NUS Business School. He served as a committee member of both the IT Committee and the Examination Committee of ISCA, and was a Committee member of the Disciplinary Sub-Committee of Accounting and Corporate Regulatory Authority (ACRA).

The webinar was recorded on 23 July 2020

  • Elearning
    • PD hours: 1.5
    Complete online at your own pace (Self-paced)
    • $160.50 incl. GST (7%)

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