The Accounting Standards Council issued FRS 116 on 30 June 2016 and SFRS(I) 16 on 29 December 2017. FRS 116/SFRS(I) 16 applies to entities with effect from annual reporting periods beginning on or after 1 January 2019.
The accounting changes will have a significant impact on how companies account for certain assets and liabilities. Given the potential mismatch between tax and accounting, these changes could increase compliance and operational costs and create additional administrative burdens for tax reporting and filing.
Companies will need to also ensure that any transitional adjustments are carefully accounted for in order to avoid a double counting of taxes and/or deductions arising from the nature and reclassification of income and expense items.
In this timely and practical webinar, the Trainer will share with you the appropriate tax treatment and challenges for entities adopting FRS 116 or SFRS(I) 16. You will also learn to avoid the common pitfalls when you are doing your tax reporting.
A Highlight of Key Areas:
- Accounting Aspects and Background of FRS 116
- Current Tax Treatment
- FRS 116 Tax Treatment
- Tax Treatment of Subleases
- Withholding Tax Obligations
- Application of total asset method for computing interest adjustment
- Transitional Tax Adjustments upon Adoption of FRS 116
- Potential Pitfalls
- Examples