Impairment testing continues to remain relevant in this uncertain environment, and is one of the key focus areas highlighted in ACRA’s Financial Reporting Practice Guidance No. 2 issued on 4 December 2020.
Against this backdrop, impairment testing models needs to be updated and reflect both the current status of a business and the economic and industry outlook. Property, plant and equipment, goodwill and other intangible assets needs to be assessed for impairment.
Due to unstable trading conditions and some customers’ inability to pay debts when due, estimating expected credit loss allowance (ECL) will require more judgment.
This workshop covers FRS 36 Impairment of Assets (including identifying indicators of impairment, understanding valuation approaches, applying commonly used valuation methods, preparing supportable forecasts and estimating an appropriate discount rate) and FRS 109 Financial Instruments, specifically measuring impairment under the ECL model for trade receivables, contract assets and lease receivables.
The objective is not only to equip participants with technical knowledge, but it is also designed to develop skills to estimate impairment loss at a practical level.
Impairment of Assets
Objective, scope and basic principles under FRS 36
Identifying assets that may be impaired
Measuring recoverable amount
Identifying CGUs and impairment decision tree
Calculating value in use
Measuring fair value less cost of disposal
Recognition and reversal of impairment losses
Impairment of Financial Assets
Scope of impairment under IFRS 9
Understanding the expected credit loss (ECL) model
Participants are encouraged to bring along their financial calculators.
This workshop qualifies for 7.0 CPE hours in Financial Reporting Standards and Pronouncements (Category 1).
Accountants, Auditors, Finance Professionals and Audit Committee Members
Ong Woon Pheng
Woon Pheng is a Chartered Accountant of Singapore (CA Singapore), Fellow Member of Association of Chartered Certified Accountants (FCCA), Chartered Financial Analyst (CFA), Chartered Valuer & Appraiser (CVA), International Certified Valuation Specialist (ICVS), Certified Fraud Examiner (CFE) and Accredited Tax Practitioner (ATP Income Tax).
Woon Pheng specialises in business valuation, valuation for FRS (including purchase price allocation, impairment review and valuation of intangible assets and financial instruments), financial and tax due diligence, divestment of business, mergers and acquisitions (M&A), fraud investigation, assessment of damages, expert witness and liquidation.
In addition to his various roles in the Singapore CA Qualification, Woon Pheng is also an adjunct faculty of Singapore University of Social Science ( SUSS ) where he teaches business valuation, financial reporting and corporate finance related subjects . In 2015, he was conferred the Teaching Merit Award by SUSS. He serves as a member in ISCA’s Investigation and Disciplinary Panel and the ACCA Singapore Professional Expert Forum. He is also a regular speaker on BusinessValuation in various conferences.
This is a face to face event to be conducted on 10 November 2021.