FRS 116 Leases

Preparing for Compliance with FRS 116 Leases

Location: NTUC Centre Level 9, Room 903 | 1 Marina Boulevard    Singapore 018989
Start Date:

18/10/2019 09:00

End Date:

18/10/2019 13:00

FRS 116 Leases
Are you prepared to adopt the new Financial Reporting Standard (FRS) 116 and other amendments effective on 1 January 2019?

The new standard on leases, FRS 116, which replaces standards such as FRS 17 (Leases) and INT FRS 104 (Determining whether an arrangement contains a lease), introduces changes that will primarily affect the financial statements of lessees.

Currently, lessees recognise rental expense on operating leases (Off-Balance Sheet). Under the new standard, such leases, with limited exception, will be recorded on the balance sheet of lessees.

FRS 116 is effective for annual periods beginning on or after 1 January 2019.

Our Audit Partner, Technical team and Tax Director from Crowe Singapore, provided an overview of the key changes from a lessee’s perspective and provide a summary of the tax impact.

The topics covered were as follows:

FRS 116 Leases

  • Scope, definitions and exemptions
  • Identifying leases
  • Determining lease term
  • Initial measurement of lease liability: lease payments and discount rate
  • Lease modifications and re-measurement of lease liability
  • Transitions provisions
  • Key points from IRAS’ e-Tax Guide

In addition, there are a number of amendments to the existing standards and one new interpretation which came into effect on 1 January 2019. Participants were also provided with a brief summary of relevant key changes brought about by:

  1. INT FRS 123: Uncertainty over Income Tax Treatments
  2. Amendments to FRS 109: Prepayment Features with Negative Compensation
  3. Amendments to FRS 28: Long-term Interests in Associates and Joint Ventures
  4. Improvements to FRSs (March 2018):
  5. FRS 103: Business Combinations
  6. FRS 111: Joint Arrangements
  7. FRS 12: Income Taxes
  8. FRS 23: Borrowing Costs