Introduction

Assets and liabilities are the predominant elements of a statement of financial position. Assets and liabilities can be created in a many ways for instance the recognition of an asset may accompany with the recognition of a liability, a Standard may require deferment of an expense that may result in recognizing an asset or deferment of an income may create a liability. Standard setters have implemented numerous Standards that deal with the principles of assets and liabilities recognition and measurement.

Each of these Standards often interrelates to each other in their application and can be daunting to operate in practice. For example, the requirement to recognised future decommissioning cost as an asset under FRS16 (IAS16) would simultaneously create a liability in accordance with FRS37 (IAS37), however the subsequent interaction between the movements of the asset and liability created above is dealt with under FRS INT 101 (IFRIC 1) with complex accounting treatments. 

These inter-relationships have been made more complex in recent years with the increased use of fair value measurement, present value and amortised cost techniques. Preparers and users of financial statements need to equip themselves with comprehensive knowledge of the various Standards in order to understand and manage the complicated accounting requirements for assets and liabilities.

This seminar takes a holistic approach to accounting for debit (assets) and (credit) liabilities. It uses mini case studies to illustrate the interrelationship between accounting for these two elements as well as practical guide to enhance better understanding of the salient features of each Standard listed in the contents and also their interaction with each other.

The seminar covers the following issues:

• the interrelationship between recognition and measurement principles of assets and liabilities
• the methods and options that are permitted for managing assets and liabilities under various Standards
• the use of discounted cash flow techniques to measure assets and liabilities such as:
• finance lease and hire purchase, decommissioning obligations, impairment of assets, fair value measurement, amortised cost accounting
• classification and measurement of financial assets and financial liabilities

Programme Outline 

GENERAL PRINCIPLES UNDER “THE FRAMEWORK”

• Definition of assets and liabilities
• Recognition and derecognition criteria by assessing:
• probable inflow/outflow of future economic benefits
• reliability of measurement
• contractual rights and obligations|
• Measurement bases
• Historical cost; Current cost; Realisable value; Present value; Fair Value
• Dealing with initial and subsequent measurement

SPECIFIC TECHNICAL ISSUES IN EACH MFRS/IFRS DEALING WITH ASSETS AND LIABILITIES

• FRS 37:  Provisions, Contingent Liabilities and Contingent Assets
• FRS 2: Inventories
• FRS 16: Property plant and equipment (PPE)
• FRS 17: Leases
• FRS 40: Investment property
• FRS 38: Intangible assets
• FRS 5: Non-current assets held for sale and discontinued operations
• FRS 36: Impairment of assets
• Dealing with financial assets(FA) and financial liabilities(FL) (FRS39, FRS32)
• Other FRS (IFRS) affecting recognition and measurement of assets and liabilities:

Intended For

This Intermediate to Advanced Level programme is suitable for:

• Directors
• Partners
• Senior Accountants and auditors
• Financial Controllers
• Finance Managers
• Funds Managers and Investment Analysts
• Academicians
• Anyone responsible for preparing, reporting, reviewing and auditing a set of financial statements

Training Methodology

Practical case studies and interactive discussions