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Operating lease or Finance lease? Need your help
08-16-2009, 05:01 PM
Post: #33
 
Ok

This time i some what suceeded to put my view point a little better.

I better clear few more things

(In response to your para 4. I do not say, to pass title is essential. Yes it is (but in only case of land due to its specialized feature, that is why i wrote in bracket "(only in case of land)"

I quoted the para to explain that; the indicators are different for different type of items, just because they are trying to evaluate what is actualy ending up in the transfer of RRs.

You said i quote "The so-called "fools" have provided the way out to decide whether or not RRS has been transferred and have also explained what the heKK this RRS in fact is."

You mentioned 2 things, correct me if i am wrong.

1)IAS - 17 has provided the way out to decide whether or not RRs have been transferred (those 8 features, indicators examples whatever). (But these indicators are not conclusive it is also mentioned, though these works normally)

2)IAS -17 also explains what does it means to transfer RRs.

We are in agreement, atleaset now, as of this stage.

My point of view is

We should not say IAS-17 has given 8 critarias to evaluate the classification of lease. Critaria is one, indicators of the fulfillment of that criataria may more than that 8 given is IAS-17.

In "Gripping IFRS" i just read today they says and I quote

"If any of the above situations apply, then the lease is normally classified as finance lease, otherwise it is classified as an operating lease. Always remember that the overriding requirement is whether substantially all the risks and rewards of ownership have been transferred."

and that is what i am saying from the first day. I may have quoted some illogical examples.

Now, Why I critised the answer to the querry.

The answer might be right,but the basis used for the conclusion are wrong. Give reasons for your answers was also the part of question. So first we should be aware that what is measurement tool.

My point of view is, whenever we answer any querry related to classifiation of lease, we should keep in mind the basic critaria and then answer in the way that, Yes these two or three conditions indicate that RRs have been transfered therefore It is Finace lease, or otherwise..


(If you agree, it will be my honour to discuss the case as well)
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Messages In This Thread
[] - kamranACA - 04-01-2009, 08:40 PM
[] - Star - 04-02-2009, 05:53 PM
[] - huu_tung87 - 04-02-2009, 06:24 PM
[] - Star - 04-02-2009, 07:39 PM
[] - huu_tung87 - 04-02-2009, 07:55 PM
[] - Star - 04-02-2009, 08:12 PM
[] - kamranACA - 04-03-2009, 01:51 AM
[] - NYP - 04-25-2009, 02:19 PM
[] - Star - 04-25-2009, 06:26 PM
[] - NYP - 04-25-2009, 07:04 PM
[] - Star - 04-27-2009, 02:40 PM
[] - Abdur.Rehman - 04-29-2009, 07:05 AM
[] - wsafca1 - 08-12-2009, 01:35 AM
[] - wsafca - 08-13-2009, 04:35 AM
[] - kamranACA - 08-13-2009, 07:44 PM
[] - wsafca - 08-14-2009, 02:14 AM
[] - kamranACA - 08-14-2009, 03:16 AM
[] - wsafca - 08-14-2009, 05:47 PM
[] - faisal_desperado - 08-15-2009, 01:06 AM
[] - kamranACA - 08-15-2009, 03:13 AM
[] - wsafca - 08-15-2009, 05:00 PM
[] - wsafca - 08-15-2009, 05:04 PM
[] - wsafca - 08-15-2009, 05:55 PM
[] - kamranACA - 08-15-2009, 06:08 PM
[] - kamranACA - 08-15-2009, 06:10 PM
[] - wsafca - 08-15-2009, 06:29 PM
[] - kamranACA - 08-15-2009, 06:48 PM
[] - faisal_desperado - 08-15-2009, 07:11 PM
[] - kamranACA - 08-15-2009, 07:26 PM
[] - wsafca - 08-15-2009, 10:31 PM
[] - kamranACA - 08-15-2009, 11:42 PM
[] - wsafca - 08-16-2009 05:01 PM
[] - wsafca - 08-16-2009, 05:20 PM
[] - wsafca - 08-16-2009, 05:36 PM
[] - kamranACA - 08-16-2009, 09:00 PM
[] - wsafca - 08-16-2009, 11:19 PM
[] - kamranACA - 08-17-2009, 01:24 AM
[] - wsafca - 08-18-2009, 01:24 AM
[] - kamranACA - 08-18-2009, 05:20 AM
[] - wsafca - 08-19-2009, 12:16 AM
[] - kamranACA - 08-19-2009, 03:33 AM
[] - kamranACA - 08-19-2009, 03:37 AM
[] - applejo88 - 03-17-2011, 07:16 PM

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