Lessee Accounting in accordance with FRS 116 Leases: Important Questions Answered

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Description

This is a hybrid session. You have the option to attend this live in-person or online via Zoom. Please select accordingly at registration.

The in-person session on 18th Sep will be conducted at:
Singapore Marriott Tang Plaza Hotel
(Ballroom 1, Level 3)
320 Orchard Road
Singapore 238865

This workshop provides a strong foundation and practical working knowledge on the accounting requirements for lessee accounting in accordance with FRS 116 Leases. 

Programme Outline

This workshop will cover the following areas that are pertinent to lessee accounting:

• Does my contract contain a lease?
• Why is it important to determine my contract contains a lease?
• How to determine the lease term?
• If my lease contract does not include option to extend
• If my lease contract does not include option to terminate
• If my lease contract includes an option to extend
• If my lease contract includes an option to terminate
• What happen if there is no written lease contract?
• Why is important to determine the lease term?
• I have determined the lease term, how do determine the lease liability?
• If lease payment is monthly in arrears
• If lease payment is monthly in advance
• If lease is prepaid in full at commencement of lease
• If there is variable lease payment
• How do I determine the discount rate for determining lease liability?
• Rate implicit in the lease
• Entity’s incremental borrowing rate (IBR)
• How do I determine the initial measurement of right-of-use asset?
• Prepaid lease
• Lease liability
• Lease incentive
• Estimated cost of reinstatement
• I have agreed with the lessor to lease additional asset at standalone price. How to account for this?
• I have agreed with the lessor to lease additional asset but not at standalone price. How to account for this?
• I have agreed with the lessor to extend the lease term. How to account for this?
• I have agreed with the lessor to shorten the lease term. How to account for this?
• I have agreed with the lessor to reduce the lease asset. How to account for this?
• What are the conditions to qualify for short-lease exemption on lease accounting?
• If I break a 3-year lease into 3 one-year leases, can I elect the short lease exemption?
• Can I selectively elect short-lease exemption, i.e. for similar leases, some leases are accounted for using lease accounting in FRS 116 and some leases are elected for exemption to apply lease accounting?
• What are the conditions to qualify for low-value asset lease exemption?
• Can I selectively elect low value asset lease exemption, i.e. for similar leases, some leases are accounted for using lease accounting in FRS 116 and some leases are elected for exemption to apply lease accounting?
• Deferred Tax arising from ROU Assets and Lease Liability

This workshop qualifies for 7.0 CPE hours in Financial and Sustainability Reporting Standards and Pronouncements (Category 1).

What you will learn

• Have a practical knowledge of the accounting requirements for lessee accounting in accordance with FRS 116 Leases
• Understand and learn to address the practical issues arising from Lessee Accouting

Target Audience

• Accountants and Auditors who are new to lessee accounting
• Accountants and Auditors who want to refresh their understanding on lessee accounting
• Directors and Business Managers who want to obtain an appreciation of lessee accounting and its implications on the financial statements.

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. He was an Adjunct Professor in the School of Business, Singapore University of Social Sciences and 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).