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Description

Many tangible assets require special treatment for accounting purposes.  The accounting view of asset value is to a great extent grounded in the notion of historical cost, which is the original cost of the asset, adjusted upward for improvements made to the asset since purchase and downward for loss in value associated with the aging of the asset. 

This programme is designed specifically to give accountants and auditors the knowledge and practical application of accounting for assets. Question templates and worksheets will be provided so that you can work on the practical examples to immediately apply the concepts taught.

What you will learn

At the end of the workshop, you will: 

• Have a practical understanding of the accounting treatment of the key assets in financial statements
• Learn how to apply the recognition and measurement criteria for tangible assets including peculiarities for accounting for property, plant and equipment (FRS 16) and investment property (FRS 40) 
• Be more confident in dealing with accounting for assets with the practical examples and questions practised

Programme Outline

FRS 2 – Inventories

• Interaction of FRS 2 and FRS 41
• Valuation of inventory
• Impact of standard costing on stock valuation
• Inventories carried at fair value

FRS 16 – Property, Plant and Equipment and FRS 23 – Borrowing Costs

• Interaction of FRS 41 and FRS 116 with FRS 16
• Recognition criteria for initial and subsequent costs
  • Cost capitalization
  • Component costing
  • Overhaul costs
  • Residual values
  • Examples to illustrate cost capitalisation scenarios
• Capitalisation of borrowing costs
  • Applying the cost capitalisation criteria
• Measurement subsequent to initial recognition
  • Cost or revaluation model
  • Accounting for revaluation and the related soft spots areas
• Depreciation
  • Determining the useful life and residual value
  • Applying the correct application of useful life and residual value
  • Accounting for changes in useful life and residual value

FRS 40 - Investment Property

• How to identify an investment property
• Recognition and measurement principles
• Judgement areas when applying the recognition criteria
• Interaction with leased assets
• Illustration of the concept of owner-occupancy
• Transfers to or from investment property to property, plant and equipment  or inventory and how to measure the value at transfer date
• Tax consequences

FRS 36 – Impairment of assets

• Types of impairment indicators
• The concept of cash-generating unit (CGUs)
• Determine the recoverable amount
• Allocation of impairment loss
• What are the ‘must know’ when working with reversal of impairment

FRS 105: Non-current assets held for sale and discontinued operations

Participants are encouraged to bring along their calculators.

This workshop qualifies for 7 CPE hours in Financial Reporting Standards and Pronouncements (Category 1)​

Expert Speaker

Oh Ai Sim

Ai Sim is a qualified Accountant with over 20 years of audit related experience in a big four accounting firm. Her portfolio of clients included listed companies, multi-national companies and private entities, covering specialized industries in the technology sectors, property development and construction, retail and warehousing, manufacturing, trading and charitable organizations. 

Ai Sim was involved in initial public offerings, mergers and acquisitions, due diligence and corporate restructuring. 
She was also actively engaged in technical training during her audit career. She now conducts training regularly on FRS and audit related topics.