+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4)
+--- Forum: Accounting and Audit (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=7)
+--- Thread: IFRIC issues (/showthread.php?tid=5023)
IFRIC issues - idreesdurrani - 03-17-2008
<font color="navy"></font id="navy"><font size="3"></font id="size3"><font face="Century Gothic">Can anyone apprise me about the status of IFRIC 4 in Pakistan?
I guess its implementation was deferred by SECP for power companies.
Anybody having an idea of its current status in relation to IPPs and other companies</font id="Century Gothic">
- kamranACA - 11-22-2008
Dear Idrees,
IFRIC 4 is applicable in Pakistan for all IPPs and other dedicated power projects (dedicated for one buyer like WAPDA or KESC) from the next year.
Have you any workings of any IPP which has converted from normal accounting to IFRIC 4 during some recent period. From workings I mean
- how the tariff contents have been bifurcated between finance lease rental and other payments,
- which criteria has been used to decide it,
- how the existing operating fixed assets (PPE) has been de-recognised and accounted for as leased assets and on which amounts such assets have been recognised,
- at which amount corresponding liability has been accounted for,
- how the payment (rentals) decided (on account of finance lease portion) has been made out to a repayment schedule on account of such lease liability,
- what accounting enteries have been made.
If you have any such prototype workings and if you would like to share with me, it would be a great contribution.
Regards,
KAMRAN.