Lease Accounting Under FRS 116: Real-World Applications & Challenges

Date

Friday, 25 July 2025

Time

9AM to 5PM

Location

TBA

Cost

$520.00 nett

Includes lunch, tea breaks, materials and e-certificate

Early Bird Discounts:

• 20% off before 25 June 2025

• 10% off before 9 July 2025

*Pricing stated is before discount

Payment Methods

Bank transfer, PayNow, cheque or cash

Workshop Overview

This seminar provides a comprehensive exploration of FRS 116 Leases, focusing on the critical aspects of lessee accounting. Attendees will gain practical insights into applying the standard to non-complex lease contracts through real-world examples and case studies. Key topics include lease identification, lease term determination, lease liability calculation, and initial measurement of right-of-use assets. The session will also address special considerations such as handling unwritten contracts, lease modifications, and exemption criteria. Designed for finance and accounting professionals, this seminar ensures participants leave with a clear understanding of how to accurately implement FRS 116 in their organizations.

Programme Outline

1. Lease Identification in Contracts:

• Is My Contract a Lease Under FRS 116?

• Why Is Identifying a Lease in a Contract Crucial?

2. Determining the Lease Term:

• How to Determine the Lease Term for Different Scenarios?

• Approaches for Contracts Without Extension or Termination Options

• Handling Contracts with Options to Extend or Terminate

3. Special Lease Contract Considerations:

• How to Handle Situations with No Written Lease Contract?

4. Lease Liability Calculation:

• Calculating Lease Liability: What Are the Key Considerations?

• Understanding the Discount Rate for Lease Liability

5. Initial Measurement of Right-of-Use Assets:

• How Do I Measure the Initial Right-of-Use Asset in Various Scenarios?

6. Lease Contract Modifications:

• Accounting for Additional Lease Assets: Standalone Price vs. NonStandalone Price

• How to Account for Changes in Lease Term and Lease Assets?

7. Exemption Criteria in Lease Accounting:

• What Are the Conditions for Short-Lease and Low-Value Asset Lease Exemptions?

• Can I Selectively Apply Lease Exemptions for Similar Leases?

Key Takeaways

✔ Lease Identification – Learn how to distinguish leases from service contracts and why proper classification matters.

✔ Lease Term Determination – Master techniques for assessing lease periods, including handling extension and termination clauses.

✔ Lease Liability & Right-of-Use Asset Calculation – Understand discount rate selection and initial measurement under different scenarios.

✔ Lease Modifications & Exemptions – Explore how to account for changes in lease terms and qualify for short-term or low-value lease exceptions.

Who Should Attend?

This seminar is essential for:

• Accountants & Auditors responsible for lease accounting under FRS 116

• Finance Managers & Controllers overseeing financial statements and lease disclosures

• Real Estate & Procurement Teams involved in negotiating and managing lease agreements

• Compliance & Internal Audit Professionals ensuring adherence to reporting standards