FRS Overview Part 2: 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.

Attendance of the Part 1 workshop is not a pre-requisite for attending this workshop.

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. The relatively newer FRS 109 and FRS 116 will be covered. Extensive and practical examples and questions will be used in the workshop to illustrate the major provisions of each FRS below.

Key Topics

FRS 2: Inventories

• Meaning of cost of inventory
• Meaning of Net Realisable Value (NRV)
• Rules for conducting the lower of cost and NRV test
• Measurement of inventories using specific identification method, average cost and FIFO

FRS 12: Income Taxes

• What is a tax base?
• The meaning of the 2 temporary differences
• Examples of a deferred tax computation

FRS 16: Property, Plant and Equipment

• True meaning of depreciation
• Initial measurement of PPE including dismantling costs
• Cost model vs revaluation model
• The disadvantages of the revaluation model
• Component depreciation

FRS 21: The Effects of Changes in Foreign Exchange Rates

• The 3 circumstances when foreign exchange differences occur
• Determining the functional currency
• Accounting for the change in functional currency
• Rules for recognition of foreign currency differences at entity level

FRS 24: Related Party Disclosures

• Identify the related parties of a reporting entity
• Who is not a related party?

FRS 28: Investments in Associates and Joint Ventures

• Accounting entries for equity accounting

FRS 36: Impairment of Assets

• The impairment model
• What is value in use?
• Rules for allocating impairment losses to CGUs
• Limits to the allocation exercise

FRS 38: Intangible Assets

• The 3 conditions that must be met to recognise an intangible asset
• The 5 ways an intangible asset may be recognized
• The 2 measurement models
• Residual values of intangibles

FRS 105: Non-Current Assets Held for Sale and Discontinued Operations

• 7 conditions to be met before an asset can be shown as held for sale
• Measurement of assets held for sale
• Presentation of discontinued operations

FRS 109: Financial Instruments

• Major changes to the classification of financial assets
• What is amortised cost?
• The 3 levels of impairment of financial assets

FRS 111: Joint Arrangements

• The 2 types of joint arrangements
• Accounting for joint operations
• Accounting for joint entities

FRS 113: Fair Value Measurements

• The new definition of fair value
• Meaning of principal market
• Highest and best use considerations
• The 3 models of fair value

FRS 116: Leases

• The new leasing model for lessees
• New definition of a lease
• Example of accounting for a lease