IAS 36 Impairment of Assets (the standard) sets out the procedures that entities must apply to ensure that their assets are carried at no more than the amounts expected to be recovered through the use or sale of the assets. BDO’s consumer business expertise combines the retail, tourism, leisure and hospitality industries.The retail and wholesale sector have been at the heart of BDO's client base for many years. This workshop covers FRS 36 Impairment of Assets (including identifying indicators of impairment, understanding valuation approaches, applying commonly used valuation methods, preparing supportable forecasts and estimating an appropriate discount rate) and FRS 109 Financial Instruments (specifically the ECL impairment model). BDO is the brand name for the BDO network and for each of the BDO Member Firms. SFRS For Small Entities . 1. SFRS(I) 1-8, Changes in Accounting Estimates and Errors, provides a basis for selecting and applying accounting. We enable you to meet the many challenges of international expansion, avoiding the hazards while seizing those short-lived opportunities. This site uses cookies to provide you with a more responsive and personalised service. BDO LLP is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. IAS 36 Impairment of Assets seeks to ensure that an entity's assets are not carried at more than their recoverable amount (i.e. View S214 Impairment of Assets (Facilitator) - AY revised 2017 (V3).pptx from ACC MISC at National University of Singapore. Section 27 makes it clear that impairment losses should be recognised in the profit and loss account unless it relates to a revalued asset, in which case it will go to the revaluation reserve first. The reporting framework in Singapore that deals with the disclosure of goodwill accounting treatment is prescribed under FRS 36 Impairment of Assets. In recent years, manufacturers have developed their position to cope with the threats from low cost emerging countries and they now aspire to provide excellent service, supported by extensive R&D and innovation. In this Standard, paragraphs with a prefix ‘IFRS’ refer to effective date, transition provisions and/or, other text that are extracted from IFRSs. IAS 36 Impairment of Assets provides that goodwill impairment loss should be “allocated between the parent and the non-controlling interest on the same basis as that on which profit or loss is allocated” (paragraph C6).. S214 FRS 36 IMPAIRMENT OF ASSETS OUTLINE FRS 36 Impairment of Assets - UK Accounting Standards. Practice Statements. 12-month ECL. (b) to all other assets, for annual periods beginning on or after 1 January 2005. • Nevertheless, FRS 109 includes a rebuttable Deloitte Guidance. FRS 36, Impairment of Assets, provides the standards for review of carrying amount of an asset, determination of recoverable amount of an asset and recognition or reversal of an impairment loss. Changes effective for annual periods beginning after 1 January 2020. BDO LLP (UEN: T10LL0001F) is an accounting Limited Liability Partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A). 6% )56 &217(176 iurp sdudjudsk 2%-(&7,9( 6&23( '(),1,7,216 ,'(17,)<,1* $1 $66(7 7+$7 0$< %( ,03$,5(' 0($685,1* 5(&29(5$%/( $02817 Please read our. The asset should also be assessed for impairment in accordance with IAS 36. Right-Of-Use (ROU) assets are non-financial assets in the scope of IAS 36. The BDO Bulletin focuses on the financial reporting implications in relation to the impairment requirement of FRS/IAS 36, which applies to most non-financial assets. Firstly, goodwill acquired in … FRS 109 which replaces FRS 39, includes guidance on (i) the classification and measurement of financial assets and financial liabilities; (ii) impairment requirements for financial assets; and (iii) general hedge accounting. Volume B - UK Reporting - FRS 102 Model annual report and financial statements for UK unlisted groups - FRS 102. For further resources on applying the requirements of IAS 36 and other IFRSs, please refer to BDO resources such as IFRS In Practice publications and online training, which are available on BDO’s IFRS Reporting Hub . The entity must reduce the carrying amount of the asset to its recoverable amount, and recognise an impairment loss. IAS 36 also applies to groups of assets that do not generate cash flows individually (known as cash-generating units). This preview shows page 1 - 6 out of 46 pages. Heightened scrutiny. First-time Adoption of Singapore Financial Reporting Standards (International).pdf, Business Combinations - Illustrative Examples.pdf, Impairment of Assets - Illustrative Examples.pdf. In contrast under FRS 11 the impairment loss was set against intangibles first and then finally against other assets on a pro-rata basis. 31 December 2017 that are applicable for annual reporting period beginning on 1 January 2018. Financial Reporting IMPAIRMENT OF ASSETS (FRS 136) LEARNING OUTCOMES At the end of IAS 36, 'Impairment of assets' and FRS 102 Section 27. Our best-in-class people utilise the resources and global footprint of our cross-border network to give you key audit, tax, and... Just as technology rapidly evolves, so too does the sector. We focus our full suite of core services on the needs of... Changing regulations. This course allows participants to explore FRS 36 Impairment of Assets in detail and understand the key issues in discounted cash flow computation through the use of case studies. This standard eliminates goodwill amortization, requiring instead that goodwill be evaluated for possible impairment. Accounting Standards . View Notes - Impairment of Assets FRS 136 from BUSINESS 78 at Asia Pacific University of Technology and Innovation. Generally Accepted Accounting Principles, International Financial Reporting Standards, Adoption of International Financial Reporting Standards, Adoption of Singapore Financial Reporting. • FRS 109 does not include a definition for “default”; instead, corporates need to define “default” in the context of their specific types of assets. By using this site you agree to our use of cookies. With clients demanding excellent service delivery as well as value for... BDO’s global real estate and construction team is available to collaborate with you, wherever you do business. By NG ENG JUAN. Singapore Illustrative Financial Statements Year ended 31 December 2017 . Earlier … In accordance with IAS 36, which of the following would definitely NOT be an indicator of the potential impairment of an asset (or group of assets)? With the exception of goodwill and certain intangible assets for which an annual impairment test is required, entities are required to conduct impairment tests where there is an indication of impairment of an … Singapore Financial Reporting Standards (International) Effective for annual reporting period beginning on 1 January 2019 SFRS(I)s comprise Standards and Interpretations that are equivalent to International Financial Reporting Standards (IFRS Standards) issued by … treatment under FRS 36, Impairment of Assets in Singapore was effective from 1 July 2004. The professional services sector is facing a period of rapid change, and many professional services firms are facing new challenges driven by the downturn in the economy. Practice Statements. Singapore FRS. Programme Outline . The objective of IAS 36 Impairment of assets is to make sure that entity’s assets are carried at no more than their recoverable amount. IN1 Hong Kong Accounting Standard 36 Impairment of Assets (HKAS 36) replaces SSAP 31 Impairment of Assets (issued in 2001), and should be applied: (a) on acquisition to goodwill and intangible assets acquired in business combinations for which the agreement date is on or after 1 January 2005. Although it … This course allows participants to explore the practical issues in relation to audit of FRS 36 Impairment of Assets in greater detail and how to overcome them. The reporting framework in Singapore that deals with the disclosure of goodwill accounting treatment is prescribed under FRS 36 Impairment of Assets. IAS 36, 'Impairment of assets' or FRS 102 Section 27 requires management to consider at each report date whether there is any indication that an asset may be impaired. To gain a better understanding of the characteristics of the goodwill reporting regime, developing an understanding of the level of compliance and quality disclosures related to determining the recoverable amount of the CGUs are matters of … Increasing competition. Speed, responsiveness and flexibility can be make-or-break for a company at any stage of its lifecycle, especially when moving into new territories. Financial Reporting Standards. IAS 36 Impairment of Assets contains a number of examples of internal and external events which may indicate the impairment of an asset. Impairment of Assets.pdf - SINGAPORE FINANCIAL REPORTING STANDARDS(INTERNATIONAL SFRS(I 1-36 Impairment of Assets This Standard is applicable for annual, This Standard is applicable for annual reporting period beginning on, SINGAPORE FINANCIAL REPORTING STANDARD (INTERNATIONAL) 1-36, IDENTIFYING AN ASSET THAT MAY BE IMPAIRED, Measuring the recoverable amount of an intangible asset with an, RECOGNISING AND MEASURING AN IMPAIRMENT LOSS, Identifying the cash-generating unit to which an asset belongs, Recoverable amount and carrying amount of a cash-generating unit, Impairment loss for a cash-generating unit, Reversing an impairment loss for an individual asset, Reversing an impairment loss for a cash-generating unit, Reversing an impairment loss for goodwill, Estimates used to measure recoverable amounts of cash-generating units, containing goodwill or intangible assets with indefinite useful lives, Using present value techniques to measure value in use, Impairment testing cash-generating units with goodwill and non-, NON-MANDATORY IFRS TEXT EXCLUDED FROM SFRS(I) 1-36, Singapore Financial Reporting Standard (International) 1-36, C. 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