FRS 136 Impairment of Assets

This course is aimed to provide a practical guide on impairment of assets and offers preparers and auditors hands on practice via extensive illustrations. The procedures and accounting treatment to assess and recognize impairment of assets can be quite complex and onerous. For many enterprises, compliance with this standard has far reaching consequences. The main feature is to highlight pitfalls and controversial issues in carrying out impairment tests, and to provide a forum for discussion to address practical issues surrounding impairment of assets.

Course outline:

· Understanding the concept of impairment

· A practical model in identifying impairment of assets

· Impairment of tangible and intangible assets

· Accounting treatment for reversal of impairment loss

· Accounting treatment/implications on:

  - determining fair value less cost to sell

  - computing value in use:

• understanding the basis for estimates of future cash flows
• estimating discount rate to be used

· Treatment of goodwill and corporate assets

· Cash generating unit (CGU)

  - the importance of CGU and its application in practice

  - how to identify CGU

  - Impairment of CGU with goodwill related and allocated

  - Allocation of impairment loss to CGU

· Audit implications

Speaker’s Profile

RAMESH RUBEN LOUIS is an accountant by profession with close to 10 years of working experience. He is a member of MICPA, MIA as well as a Certified Financial Planner. He started his career in a Big 4 audit firm and subsequently moved over to larger medium size audit firms. He also has experience in corporate finance whilst attached to an investment bank. He is currently the Head of Training & Practice Development for a reputable international – affiliated accounting firm in Kuala Lumpur, where he also acts as the firm’s Technical Manager.

His experience in auditing ranges from large public listed companies to multinational corporations, government agencies as well as SME’s in a spectrum of industries. Ramesh also has experience on other corporate exercises such as due diligence, IPO’s, issuance of bonds, corporate & debt restructuring and investigative audit. With his vast experience, he now conducts training for audit and other financial professionals to enable them to perform their tasks more effectively.

Ramesh is also actively involved in improving & updating processes & procedures for an effective practice especially for rendering of assurance services.