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Description
The two most complex transactions of SFRS(I)16 leasing standard are (i) Sale and lease back transactions and (ii) accounting for intermediate lessor.
Join this webinar as the presenter will help simplify the understanding and provide practical tips on how to carry out the double entries for these two complicated areas of leasing arrangements.
Programme Outline
Intermediate Lessor – Transactions Involving Properties
- Identifying transactions where a lessee has a headlease of a property and subsequently sublease the same property to another lessee
- Accounting treatment for intermediate lessor where the sublease is a finance lease or operating lease
- Procedure for transferring a ‘right-of-use’ asset to ‘investment property’
- Lease of properties between companies in the same group
Sale and Leaseback Transactions for both Seller-lessee and Buyer-lessor
Accounting Treatments for Seller-lessee
- The initial accounting for recognising and measuring:
- the portion of the asset relating to right-of-use asset retained by the seller-lessee
- the amount of the gain or loss relating to the rights transfer to the buyer-lessor
- The subsequent accounting for the leaseback of the assets
Accounting Treatments for Buyer-lessor
- The initial accounting for
- deciding the classification of the asset purchase
- deciding the lease to seller-lessee to be classified as either operating lease or finance lease
Dealing with Initial and Subsequent Accounting for both Seller-lessee and Buyer-lessor when:
- Selling price is the same as fair value of the asset sold
- Selling price is higher than fair value of the assets sold
- Selling price is lower than fair value of the asset sold
Deciding whether the Transaction is a Sale
- Criteria when transfer of an asset is considered as a sale
- Accounting treatments for transfer of asset that is not a sale for seller-lessee and buyer-lessor
What you will learn
- A hands-on step-by-step guide to the accounting for sale and leaseback transaction and the accounting procedure for intermediate lessor
- Gain the technical clarity to these complex areas of the SFRS(i)16 Leases
Target Audience
- Accountants and Auditors
Expert Speaker
Danny Tan has over 40 years of working experience in public practice, commerce and industry.
In the last 25 years he is a partner of a consulting firm providing technical training and consultancy in financial reporting topics. His clients’ profiles include multinational companies, governments, regulators and professional institutions, auditors and lawyers. Danny held several honorary advisory roles in financial reporting committees and working group in IFRS technical issues. He is currently a project manager with the Malaysian Accounting Standards Board.