There are more than 40 Financial Reporting Standards (FRS) issued in Singapore. A good understanding of FRS 36: Impairment of Assets: requirements is vital in achieving an appropriate measurement of non-financial assets on the financial statements, especially given the increased volatility in the current market conditions. IFRS 16 and IAS 36 how changes in lease accounting will impact your impairment testing processes. Financial Reporting Standards. 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. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset should be reduced to its recoverable amount. A: An unexpected fall in the market value of one or more assets. Unless it is tested on a standalone basis, an ROU asset is tested in combination with other assets in a Cash Generating Unit (CGU). In this Standard, paragraphs with a prefix ‘IFRS’ refer to effective date, transition provisions and/or, other text that are extracted from IFRSs. We combine our extensive knowledge of this sector with an in-depth understanding of your goals and vision, so we can help you to achieve them in the... Impairment Implications of COVID-19 (IAS Impairment of Assets), Original content provided by BDO International, Technology, Life Sciences, Media & Entertainment, Telecommunications. Need for judgement . Programme Outline Introduction Singapore Financial Reporting Standards (International) (SFRS(I)s) are available for entities to apply. UK Accounting Standards. [IAS 38.111] Measurement subsequent to acquisition: intangible assets with indefinite useful lives. Course Hero is not sponsored or endorsed by any college or university. IFRS 16 and IAS 36. 20 Journal of Law and Financial Mangement - Volume 7, No.1 Khairi Under the new standards, there are three significant impacts on the treatment of goodwill. An intangible asset with an indefinite useful life should not be amortised. Singapore Financial Reporting Standards (International) 2020 Volume. 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. We enable you to meet the many challenges of international expansion, avoiding the hazards while seizing those short-lived opportunities. This standard eliminates goodwill amortization, requiring instead that goodwill be evaluated for possible impairment. 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 … 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. Right-Of-Use (ROU) assets are non-financial assets in the scope of IAS 36. Firstly, goodwill acquired in … 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' and FRS 102 Section 27. treatment under FRS 36, Impairment of Assets in Singapore was effective from 1 July 2004. SFRS(I) 1-36 4 Singapore Financial Reporting Standard (International) 1-36 Impairment of Assets (SFRS(I) 1-36) is set out in paragraphs 1 – 141 and Appendices A – C. All the paragraphs have equal authority. SFRS(I) 1-8, Changes in Accounting Estimates and Errors, provides a basis for selecting and applying accounting. policies in the absence of explicit guidance. Introduction ; Identifying assets that may be impaired; Identifying cash-generating units; Impairment assessment of goodwill; Measuring recoverable amount: ‘fair value less costs of … Changes effective for annual periods beginning after 1 January 2020. ALLOCATION OF GOODWILL IMPAIRMENT LOSS. 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. 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. All the paragraphs have equal authority. 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. SFRS(I), 1-36 should be read in the context of its objective, the, Conceptual Framework for Financial Reporting, Conclusions on International Financial Reporting Standards. Practice Statements. Increasing competition. 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. 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. Many Irish businesses will be impacted to some degree by the COVID-19 pandemic. Singapore Illustrative Financial Statements Year ended 31 December 2017 . • Nevertheless, FRS 109 includes a rebuttable An entity that is not a first-time adopter shall apply those. 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. Effective for annual periods beginning on or after 1 Jan 2017. The COVID-19 outbreak brought significant impact on businesses and posed challenges to financial reporting, especially on the impairment assessment of non-financial assets. BDO LLP (UEN: T10LL0001F) is an accounting Limited Liability Partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A). Volume B - UK Reporting - FRS 102 Model annual report and financial statements for UK unlisted groups - FRS 102. 2020 Volume. 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 aim of IAS 36, Impairment of Assets, is to ensure that assets are carried at no more than their recoverable amount. 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. Expected loss over the next 12 months for the BDO Member Firms transactions will be and. Financial transactions will be relevant to a particular business impairment loss was set intangibles! 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