ACCOUNTING FOR LEASES: MFRS 16 Leases and Section 20 MPERS
HRD Corp Programme Number : 10001744791
If you are looking for Remote Online (zoom) training on this “ACCOUNTING FOR LEASES: MFRS 16 Leases and Section 20 MPERS”programme, please CLICK HERE.
Course Overview
This comprehensive one-day seminar delves into the intricacies of lease accounting under Malaysian Financial Reporting Standards (MFRS) and MPERS. Designed for finance leaders, accountants, and auditors, this programme equips participants with the expertise to navigate complex accounting treatments, implement standard updates, and optimize financial reporting.
Download Brochure and Registration Form HERE
Training Date :
27th November 2026 (Dorsett Grand Subang, Subang Jaya, Selangor, Malaysia)
Learning Objectives
By the end of this workshop, participants will be able to:
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Differentiate Frameworks: Compare and contrast the accounting treatments under the single-lessee model of MFRS 16 versus the dual-model of Section 20 MPERS.
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Apply Scope & Identification Criteria: Correctly identify lease components, non-lease components, and contract combinations under MFRS 16.
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Execute Complex Calculations: Perform precise computations for Right-of-Use (ROU) assets, lease liabilities, discount rates, interest expenses, and depreciation.
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Manage Modifications & Remeasurements: Accounting for lease modifications, reassessments of lease terms, and variable lease payments.
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Implement Standard Updates & Agenda Decisions: Apply the latest IFRIC Agenda Decisions and recent MFRS 16 updates to real-world corporate scenarios.
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Master Advanced Transactions: Evaluate complex arrangements including intermediate lessor/subleases, investment properties, and sale-and-leaseback transactions.
WHO SHOULD ATTEND
- Financial Controllers and Accountants
- Finance Managers and Financial Statement Preparers
- Audit Managers and Supervisors
- Accounts Executive
- Anyone involved in construction contract or property development activities
METHODOLODY
- Engaging presentations with PowerPoint and whiteboard
- Illustrative examples, practical case studies, and real-world scenarios
- Interactive group discussions, Q&A sessions, and problem-solving exercises
COURSE OUTLINE
Programme Schedule
09:00 AM – 10:45 AM
Session 1: Scope, Contract Identification & Recent Updates
• Understanding Core Principles & Framework Comparison
o Overview of MFRS 16 (IFRS 16) vs. MPERS Section 20 key differences.
o Impact on financial statements, balance sheet ratios, and cash flows.
• Identifying a Lease
o Definition and key characteristics of a lease contract.
o Identifying an identified asset and evaluating control/substance.
o Separating lease and non-lease components; combining contracts.
• MFRS 16 Updates & Technical Agenda Decisions
o Overview of recent IFRIC Agenda Decisions (e.g., lease term determination, non-refundable VAT on lease payments, economic compulsion).
o Key updates on recent amendments (e.g., Lease Liability in a Sale and Leaseback).
10:45 AM – 11:00 AM
Morning Break
11:00 AM – 01:00 PM
Session 2: Lessee Accounting – Recognition & Discount Rates
• Recognition Exemptions
o Criteria for short-term leases and low-value assets.
o Interaction with extension options and modifications.
• Determining Lease Liability & Terms
o Determining non-cancellable periods and evaluating “reasonably certain” options.
o Accounting for rent-free periods and incentive structures.
o Reassessment triggers for lease terms.
• Discount Rate Determination
o Calculating the rate implicit in the lease vs. incremental borrowing rate (IBR).
• Practical Exercise / Hands-on Case Study: Discounting and initial liability computation.
01:00 PM – 02:00 PM
Lunch Break
02:00 PM – 03:30 PM
Session 3: ROU Assets, Reassessments & MPERS Section 20
• Right-of-Use (ROU) Asset Measurement
o Initial expenditures qualifying as ROU asset costs.
o Subsequent depreciation, impairment testing, and carrying models.
o ROU assets classified as Investment Property (MFRS 140) or PPE (MFRS 116).
• Subsequent Remeasurement & Modifications
o Accounting for scope increases/decreases and term adjustments.
o Choosing the appropriate discount rate upon remeasurement/modification.
• Comparative Focus: Section 20 MPERS for Private Entities
o Operating vs. Finance lease classification criteria for private companies.
o Key differences in balance sheet recognition and disclosure requirements.
03:30 PM – 03:45 PM
Afternoon Break
03:45 PM – 05:00 PM
Session 4: Lessor Accounting, Complex Scenarios & Practical Models
• Lessor Accounting Mechanics
o Finance lease vs. Operating lease classification criteria.
o Accounting for lessor revenue recognition and residual values.
• Intermediate Lessors & Subleases
o Sublease classification based on ROU asset vs. underlying asset.
o Transferring ROU assets to Investment Property.
• Sale and Leaseback Transactions
o Determining whether a transfer constitutes a sale under MFRS 15 / Section 20.
o Spreadsheet Models & Practical Demonstration:
§ Seller-Lessee: Measuring retained ROU assets and calculating gains/losses.
§ Buyer-Lessor: Purchase measurement and back-lease classification.
§ Accounting treatments for transactions that fail the sale criteria.
• Q&A Session and Wrap-up
DOWNLOAD THE COURSE CONTENT IN PDF FORMAT FROM HERE
FACILITATOR
Course Fees & Registration
FEE PAYABLE PER PARTICIPANT :
Normal Price : RM998
Early Bird (15 days before event) : RM849
Group Fee (>2 participants) : RM758
Fee includes course materials, lunch, 2 tea breaks per day and Certificate of Attendance (upon completion of the training).
Download Registration Form from HERE and sent it to us by
Email : sales@wanfahprosper.com
WhatsApp : +60162634929 / +601159403399
CANCELLATION / TRANSFER
Upon registering, participant(s) are considered successfully enrolled in the event. Written cancellations / transfer notice (substitution or to later dates) received :
- More than ten (10) working days before the event, a refund (less administrative charge of 15%) will be made.
- Ten (10) working days or less before the event, no refund will be made.
- For no show on the day of the event, full payment is required. If you cannot attend the event, you can nominate a substitute at any time without payment of an administration fee.
- A full (100%) refund may be granted if the course is cancelled by Wanfah Prosper PLT (WFP). WFP reserves the right to postpone or cancel the event and / or change facilitator at any time should circumstances beyond its control arises. WFP also reserve the right to make alternative arrangements without prior notice should it be necessary to do so.
Payment :
Please make cheque payable / direct credit to :WANFAH PROSPER PLT
Accounts Number : 3812930508
Bank : Public Islamic Bank Berhad
DATA PROTECTION
Personal Data is gathered in accordance with the Personal Data Protection Act 2010 (Act 709)
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