About this Course

The seminar covers the following issues:

• The interrelationship between recognition and measurement principles of assets and liabilities
  
• The various methods and options that are permitted for managing value of assets under accounting Standards
  
• The use of discounted cash flow techniques to measure assets such as:
  
• Finance lease and hire purchase, decommissioning costs, impairment of assets, fair value measurement, amortise cost accounting etc
  
• Classification and measurement of financial assets
  

Accounting Standards set out the measurement principles for all assets included in the statement of financial position. The recognition of an asset initially may simultaneously give rise to the recognition of other elements of financial statement such as a liability and this may affect the valuation of the assets.

Value of assets is influence by myriad of factors in practice such as cost of purchase, borrowing costs, decommissioning costs, commissioning costs, foreign exchange, taxation, hedging activities, nature of acquisition contracts etc. Standard setters implemented numerous Standards to tackle the valuation of an asset at initial recognition subsequent accounting. Value of assets can also be impaired subsequently by expected unfavourable future operating conditions that are highly judgmental and controversial.

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 recognise future decommissioning cost as an asset would simultaneously create a liability at initial recognition and subsequently such liability can be subject to changes in value that in turn can affect the value of the asset.

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 accounting Standards in order to understand and manage the complicated measurement requirement for assets.

Programme Outline 

GENERAL MEASUREMENT PRINCIPLES UNDER “THE FRAMEWORK”

• Measurement bases

• Historical cost; Current cost; Realisable value; Present value; Fair Value
  
• Dealing with initial and subsequent measurement
  

SPECIFIC ASSET MEASUREMENT AND ACCOUNTING ISSUES IN EACH STANDARD

• Inventory

• Property plant and equipment (PPE)

• Investment property

• Leased assets of a lessee

• Intangible assets

• Non-current assets held for sale and held for distribution

• Impairment of assets

• Dealing with financial assets

• Other Standards affecting the value of assets

Intended For

This Intermediate to Advanced level programme is suitable for Practising and Non-Practising Accountants and Auditors, including but not limited to:

• Directors

• Audit committee members

• External auditors

• Senior Accountants

• Financial Controllers

• Finance Managers

• Funds Managers and Investment Analysts

• Academicians

Training Methodology

Lecture style, with Practical Exercises/Case Studies

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