FRS Overview Part 1: A Practical Guide to the Commonly Used Accounting Standards

This workshop is the first part of the FRS Overview series designed specifically to give accountants and auditors a comprehensive overview of the essential FRSs commonly used in Financial Reporting.

The trainer will share the common challenges faced when applying these standards in real life. With the practical coverage, you and your team will feel more confident when you apply these FRSs in your financial reporting. Extensive and practical examples and questions will be used in the workshop to illustrate the major provisions of each FRS below.

Key Topics

FRS 1: Presentation of Financial Statements

• Changes to the “Other Comprehensive Income”
• Changes to the income statement
• Requirements to disclose estimation uncertainties and judgements

FRS 8: Accounting Policies, Changes in Accounting Estimates and Errors

• When are accounting policies changed?
• Retrospective and prospective adjustments
• Difference between change in estimates and policies
• Accounting for prior year errors

FRS 10: Events after the Reporting Period

• How long is the post balance sheet event period?
• Difference between adjusting and non-adjusting events
• Examples of non-adjusting events that require disclosures
• The disadvantages of the revaluation model
• Component depreciation

FRS 20: Accounting for Government Grants and Disclosure of Government Assistance

• Accounting for asset grants
• Accounting for expense related grants
• Accounting for the change in functional currency
• Rules for recognition of foreign currency differences at entity level

FRS 23: Borrowing Costs

• When are borrowing costs capitalised?
• What are qualifying assets?

FRS 27: Separate Financial Statements

• What are separate financial statements?
• Accounting for investments in subsidiaries, associates and joint ventures in separate financial statements

FRS 32: Financial Instruments: Presentation

• Presentation of treasury shares
• Equity vs liability presentation

FRS 37: Provisions, Contingent Liabilities and Contingent Assets

• The 3 conditions that must be met to recognise a provision
• The 4 levels of probability to recognise provisions and contingent liabilities
• The 4 levels of probability to recognise contingent assets

FRS 40: Investment Property

• Meaning of investment property
• The 2 measurement models
• Measurement rules for any change in use

FRS 103: Business Combinations

• Partial vs full goodwill method
• Assets recognised at consolidation level not recognised by the acquire

FRS 110: Consolidated Financial Statements

• How is control achieved?
• The 3 steps to determine control

FRS 115: Revenue from Contracts with Customers

• The 5-step revenue recognition model
• Contract modifications
• Variable consideration
• Recognising revenue over time or at one time
• Input and output methods to recognise revenue