Revenue Recognition: Accounting & Ethical Issues in Real Life

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 8th December will be conducted at:
Singapore Marriott Tang Plaza Hotel
(Ballroom 1, Level 3)
320 Orchard Road
Singapore 238865

The updated revenue recognition standard FRS 115 Revenue from Contracts with Customers allows for improved comparability of financial statements with standardized revenue recognition practices across multiple industries.

The core principle of the standard is to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods and services. Accountants will often need to exercise significant judgments when an entity evaluates the appropriate recognition of revenue from contracts with customers. These judgments are often required throughout the standard’s five-step process that an entity applies to determine when, and how much, revenue should be recognized.

The practical workshop will go through the five-step process with practical examples and questions to facilitate understanding and application to real-life scenarios.

In the business and accounting environment, many deceptions and fraudulent acts relate to revenue measurement and recognition. Many business managers or owners succumb to the temptation to overstate revenues to make the company's financial performance appear better than it is. Intentional revenue inflation is unethical, and many types of revenue inflation are illegal. This workshop will also discuss and illustrate the various ethical issues relating to revenue recognition.

Programme Outline

Revenue from Contracts with Customers

5 Steps to Revenue Recognition

• Identify the contract with the customer
• Combination of contracts
• Contract modifications
• Identify the separate performance obligations in the contract
• Determine the transaction price
• Variable consideration
• The time value of money
• Allocate the transaction price
• Recognise revenue when a performance obligation is satisfied
• Performance obligations satisfied over time
• Performance obligations satisfied at a point in time

Real life examples and detailed questions on Revenue recognition will be shared during the session.

Ethical Issues relating to Revenue Recognition

• Improper cut-offs
• Bill and hold arrangements
• Related-party transactions
• Fictitious sales
• Round tripping
• Channel stuffing

This workshop qualifies for 5.0 CPE hours in Financial and Sustainability Reporting Standards and Pronouncements (Category 1) and 2.0 CPE hours in Ethics and Professionalism (Category 2).

What you will learn

• Understand the five-step process that an entity applies to determine when, and how much, revenue should be recognized
• Hone your skills in exercising judgments when an entity evaluates the appropriate recognition of revenue from contracts with customers
• Understand and manage the ethical issues relating to revenue recognition

Target Audience

Accountants and Auditors who wish to have a practical understanding of revenue accounting and its ethical issues

Expert Speaker

Sardool Singh

Sardool is an Adjunct Associate Professor in the Department of Accounting of the NUS Business School. He has been lecturing for the past 20 years, and is a highly sought-after seminar leader in the areas of Financial Reporting Standards, Cash Flow Statements, Analysis of Financial Statements, Consolidation and other technical accounting topics.

Sardool brings a commercial perspective to the understanding of complex Accounting Standards and simplifies the requirements of these Standards to enable the participants to have a clear understanding of the topic.

Sardool is also the Chief Financial Officer of an investment company. Prior to his current appointment, he was the Group Financial Controller of a Singapore listed healthcare company. During his ten years in the healthcare industry, he was responsible for the entire Group financial functions and the IPOs of two subsidiaries on SESDAQ. He had also gained his working experience with KPMG Peat Marwick and a Japanese merchant bank.