Revenue Accounting in accordance with FRS 115: Important Questions Answered

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 17th July will be conducted at:
Singapore Marriott Tang Plaza Hotel
(Ballroom 1, Level 3)
320 Orchard Road
Singapore 238865

FRS 115 – Revenue from Contracts with Customers requires the use of a five-step revenue recognition model that is appliable to contracts with customers.

Many Accountants and Auditors still grapple with various challenging aspects in Revenue Recognition. This seminar, through the format of commonly asked questions, aims to provide clarity and insight on challenging issues in FRS 115.

Programme Outline

• What kind of revenue contracts are excluded from FRS 115?
• My company provide assets for use by customers, should the revenue accounting follow FRS115 – Revenue from Contracts with Customers or FRS 116 – Leases?
• Provision of co-working space
• Chartering of vehicles
• What is the duration of the contract if my contracts with customers cover a fixed period and include early termination clause:
• Which allows the contract to be terminated at any time by either party without compensating the other party?
• Which allows the contract to be terminated by the customers but the customers would have to pay a substantial penalty to terminate the contract?
• My contracts with customers cover both provision of goods and services. Are these a single performance obligation or multiple performance obligations?
• My contracts with customers cover multiple months but invoices are billed monthly. Can I recognise revenue based on the invoices billed?
• My contracts with customers include late performance penalty. Is the penalty recognised only when incurred?
• My contracts with customers allow a volume rebate if the customers’ order exceed a pre-agreed volume within a pre-agreed date. Is this volume rebate recognised as expense when incurred?
• My contracts with customers allow customers to return the goods within a specified period. How should the return be accounted for?
• My contracts with customers involving delivering goods and services for an extended period of time. Should the revenue be recognised based on stage of completion or recognised at the end of the contract?
• What are the different methods of determining stage of completion for revenue to be recognised over time?
• Are there alternative methods if I have issues with the cost-to-cost method in determining stage of completion:
• Significant third party cost
• Difficulty in identifying cost overrun and revising cost budgets
• The amounts I billed my customers exceed the revenue recognised to-date. How should I account for the difference?
• The amounts I billed my customers are lower than the revenue recognised to-date. How should I account for the difference?
• What if my customers change the specifications after the commencement of the contract? Is this a contract modification or are the changes a new separate contract?

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

What you will learn

• Understand the challenging and common issues faced by Accountants and Auditors in Revenue Accounting
• Learn how to address these more challenging issues and avoid the mistakes commonly made

Target Audience

• Directors and Senior Management
• Audit Committee Members
• Accountants
• CFOs and Finance Managers
• Audit Professionals

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).