Accounting and Auditing the Leases of Lessees in accordance with FRS 116 : Determination of Lease Term and Lease Concession due to COVID-19

Description

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FRS 116 Leases replaces FRS 17, and is effective for annual reporting periods beginning on or after 1 January 2019.

On 28 May 2020, the Accounting Standards Council (ASC) issued the Amendment to SFRS(I) 16: Covid-19-Related Rent Concessions and Amendment to FRS 116: Covid-19-Related Rent Concessions, effective for annual reporting periods beginning on or after 1 June 2020.

This timely workshop will cover the Accounting and Auditing aspects of Determination of Lease Term and Lease Concession due to COVID-19.

Programme Outline

Accounting

This section will cover the determination of lease term, particularly those leases containing short notice of termination option.

Factors to consider on whether lease concession can be accounted for using the practical expedients in FRS 116 Covid-19 Related Rent Concession and Amendment.

  • Accounting for lease payments forgiveness
  • Accounting for lease payment deferral

Auditing

The section will cover the common issues encountered when auditing the entities’ application of lessee accounting:

  • Evaluating the entity’s basis for determining lease term, particularly in the determination of short lease in justification for electing exemption for lease accounting.
  • Evaluating the entity’s basis for electing to apply the practical expedients in FRS 116 Amendment for COVID 19 related rent concessions:
    • Evidence to support the lease concession is a direct consequence of the COVID-19 pandemic
    • Evaluating whether the revised consideration for the lease substantially the same as, or less than, the consideration immediately preceding the change
    • Evaluating the period of lease concession that qualify for applying practical expedients for the rent concession {lease payments originally due on or before 30 June 2021}
    • Audit procedures for forgiveness of lease payments
    • Audit procedures for deferral of lease payments

This workshop qualifies for 3.5 CPE hours in Financial Reporting Standards and Pronouncements (Category 1) and 3.5 CPE hours in Auditing Standards, Pronouncements and Methodology (Category 3).

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 15 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). 

This is a face-to-face event to be conducted on 17 December 2020

  • Dec 17
    Thu, 9:00 AM - Thu, 5:00 PM Hotel Venue to be Advised
    • $449.40 incl. GST (7%)
    • PD hours: 7

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