08-15-2009, 10:31 PM
Dear All
Well said
ok.. I am Wrong
You have made this a personal issue. ok my intention was not this
I thik i have used few wrong words that lead you to misunderstood my view point
I will make one last try
1) A lease shall be classified as finance lease if it transfers substantial Risks and Rewards (RRs) incidental to ownership.
2) 8 examples given in standards are the indicators of this fact and any one reason being fulfilled could be reason to classify a lease as finacne lease. but.... It is not conclusive not full and final
Certain fools talk about "Fictitious" other features. Plz read below what they say
12)The examples and indicators in paragraphs 10 and 11 are not always conclusive. If it is clear from other features that the lease does not transfer substantially all risks and rewards incidental to ownership, the lease is classified as an operating lease.
Those fools have also given some example of those other features.
Also in para 15 they say almost the same thing unless
it is clear from other features that the lease does not transfer substantially all risks and rewards incidental to ownership of one or both elements.
In para 14 they says
However, a characteristic of land is that it normally has an indefinite economic life and, if title is not expected to pass to the
lessee by the end of the lease term, the lessee normally does not receive substantially all of the risks and rewards incidental to ownership, in which case the lease of land will be an operating lease.
Why those fools didn't stoped at beacause the title is nit passed it is operating lease and Why did they said becasuse the titled is not passed it means (only in case of land)substantantial RRs have not been transferred therefore operating lease.
My view point is Measuring tool iss RRs not the examples. We should say like this
PV of MLP = FV it indicates RRs have been transfered so Finance Lease
Purchaese option at the end it indicates RRs have been transfered so Finance Lease
Lease is for major part of use ful life which indicates RRs hve been transfred so Finance Lease
OR
Yes PV of MLP = FV
Yes Purchaese option at the end so on and so forth, but...
because those "Fictitious" other features which have been talked about by some fools clearly indicates that RRs have not been transferred so it is operating lease.
There is only one Critaria to classify the lease.
Others are indicators giving evidence that RRs have been transfered.
Despite all te examples fulfills; due to some Fictitious other Features a lease could be turned out to be an operating.
If you find one solid evidence that RRs have not been transferred It is all over....
Regards
Waqas Shabbir
Well said
ok.. I am Wrong
You have made this a personal issue. ok my intention was not this
I thik i have used few wrong words that lead you to misunderstood my view point
I will make one last try
1) A lease shall be classified as finance lease if it transfers substantial Risks and Rewards (RRs) incidental to ownership.
2) 8 examples given in standards are the indicators of this fact and any one reason being fulfilled could be reason to classify a lease as finacne lease. but.... It is not conclusive not full and final
Certain fools talk about "Fictitious" other features. Plz read below what they say
12)The examples and indicators in paragraphs 10 and 11 are not always conclusive. If it is clear from other features that the lease does not transfer substantially all risks and rewards incidental to ownership, the lease is classified as an operating lease.
Those fools have also given some example of those other features.
Also in para 15 they say almost the same thing unless
it is clear from other features that the lease does not transfer substantially all risks and rewards incidental to ownership of one or both elements.
In para 14 they says
However, a characteristic of land is that it normally has an indefinite economic life and, if title is not expected to pass to the
lessee by the end of the lease term, the lessee normally does not receive substantially all of the risks and rewards incidental to ownership, in which case the lease of land will be an operating lease.
Why those fools didn't stoped at beacause the title is nit passed it is operating lease and Why did they said becasuse the titled is not passed it means (only in case of land)substantantial RRs have not been transferred therefore operating lease.
My view point is Measuring tool iss RRs not the examples. We should say like this
PV of MLP = FV it indicates RRs have been transfered so Finance Lease
Purchaese option at the end it indicates RRs have been transfered so Finance Lease
Lease is for major part of use ful life which indicates RRs hve been transfred so Finance Lease
OR
Yes PV of MLP = FV
Yes Purchaese option at the end so on and so forth, but...
because those "Fictitious" other features which have been talked about by some fools clearly indicates that RRs have not been transferred so it is operating lease.
There is only one Critaria to classify the lease.
Others are indicators giving evidence that RRs have been transfered.
Despite all te examples fulfills; due to some Fictitious other Features a lease could be turned out to be an operating.
If you find one solid evidence that RRs have not been transferred It is all over....
Regards
Waqas Shabbir
