• Company A holds 50% of equity shares in Company B. The remaining 50% is owned by the wife of Company A’s director. There is no written investment agreement — both parties say it’s a “family arrangement.” How should Company A classify this investment? Subsidiary? Joint venture? Associate? Investment in equity?
• Company C owns a commercial property as investment property. The management refuses to engage a professional valuer due to cost. The accountant used property agent quotations instead.
  • Will the estimates of agents be sufficient for fair value measurement under FRS 40?
  • How to determine whether this fair value is level 2 or level 3 of the fair value hierarchy in FRS 113 Fair Value Measurement?
• Company D leased a premise and spent $300,000 renovating it before commencement of operations. Should this $300,000 be recognized as PPE or ROU asset?
• Company E’s ROU asset (gross) increases each time the lease is renewed. Is this normal? Shouldn’t the original ROU asset be written off and a new ROU asset be recognised when the lease is renewed?
• Company X entered a 3-year lease for its office space with an option to renew for another 2 years. Management has not decided whether to renew.
  • Should the renewal option be included in the lease term and liability measurement?
  • What if management changed its mind two years later?
• No provision for reinstatement was recognised as the management of Company F intends to renew the 5-year lease indefinitely. Is this acceptable?
• Company G bought Corporate-Owned Insurance, i.e. to insure the life of key executives. Company G is both the policyholder and the beneficiary. Company G pays the premiums and receives the death benefit upon insured person’s death. Company G pays $100,000 insurance premium per year for 5 years, with no cash surrender value. Should the premium paid be recognized as financial asset?
• Company H is both the policyholder and the beneficiary. Company H pays the premiums and receives the death benefit upon insured person’s death. Company H pays $100,000 insurance premium per year for 5 years, with no cash surrender value for the first two years. Should the premium paid be recognized as financial asset?
  If the company ceases operation in 2024 but strike-off completes in 2025, is another year of audited financials required before strike-off?
• Company J is planning to strike off within the next few months. The directors have already filed an application to ACRA, and operations have ceased since June. Should the financial statements still be prepared using going concern basis? If not, on what basis should the financial statements be prepared? How should the audit report reflect this?
• Company K enters into a contract with a customer, for the supply of outsourced services. The contract is within the scope of FRS 115. For Company K to be able to provide the services to its customer, Company K incurs costs to train its staff in enabling them to operate the customer’s equipment and performance obligation. understand its processes. The training activities are not identified as a separate performance. The contract specifies that Company K can recharge the costs of training to the customer. Can this cost be recognised as contract asset in accordance with FRS 115?
• When determining value-in-use as part of an asset impairment analysis, sensitivity analysis is required. What sensitivity analysis should be performed?
• Company L holds bitcoin and USDT but does not trade in them. Should these be accounted for as intangible assets or financial assets? Is there a free choice, i.e. based on company’s accounting policy?
• Company M tested its investment in a subsidiary for impairment using a DCF model, applying a 6% growth rate based on 3-year historical sales trends. Is 6% growth rate too high? How to assess?
• The holding company and the subsidiary enter into novation agreement by transfer the lease to the subsidiary. How should the ROU & lease liabilities ( LL ) compute?
  • Should the holding company write off the ROU & LL in their book and the subsidiary recompute the ROU & LL or
  • Should the closing balance for ROU & LL will be transferred to the subsidiary and the subsidiary recognized the closing balance as their opening in subsidiary’s book

This workshop qualifies for 2.0 CPE hours in Financial and Sustainability Reporting Standards and Pronouncements (Category 1) and 1.5 CPE hours in Auditing and Assurance Standards, Pronouncements and Methodology (Category 3).

Time : 9.00am –12.30pm

Mode: ZOOM session

• Accountants
• Audit Professionals

Daniel holds an Honours degree in Accountancy from the National University of Singapore and is a Certified Information Systems Auditor (CISA). He has more than 15 years of experience in the accounting profession, having worked for one of the Big 4 accounting firms both in Singapore and in the United Kingdom. He has also more than 5 years of senior management experience with MNCs, managing their operations in Singapore and Asia.

Daniel is a highly sought-after seminar trainer. He was an Adjunct Professor in the School of Business, Singapore University of Social Sciences and an Adjunct Associate Professor in the Department of Accounting of the NUS Business School. He served as a committee member of both the IT Committee and the Examination Committee of ISCA, and was a Committee member of the Disciplinary Sub-Committee of Accounting and Corporate Regulatory Authority (ACRA).