06-17-2006, 11:15 PM
IAS 17
Some queries???
Non cancellable lease
Non cancellable lease (definition part (D)) i.e. upon payment of such an additional amount (at inception of lease) that continuation of lease is reasonably certainableâ¦What major difference in lease there would be, regarding practical application ,if it is cancellable or non cancellableâ¦
Most of operating leases are cancellable...If this is the case we donât need to give any disclosure (Para 35) Am I right?
Can a finance lease be cancellableâ¦if yes, how and what would be its implications?
MLP
MLP definition last Para , i.e. purchase option at lower than F.V at option exercisability date,MLP also comprises then payment required to exercise that option â¦Why lower than F.V,if payment = F.V ,it would be an operating lease(Para 13),then what , it is even then the part of MLPâ¦
Fair Value
Fair Value amount 4 which asset could be exchanged or liability settled b/w knowledgeable, willing parties in an armâs length transaction. What exactly is meant by knowledgeable, willing parties B/C an armâs length transaction can even take place at a nominal amount
Interest rate implicit in lease
Interest rate implicit in lease = rate at which, net investment in finance lease = Fair value +initial direct cost, M I right?
Contingent rent
What is contingent rent.Plz explainâ¦.they (contingent rent, service costs, taxes paid to lessor etc) are expensed out by lessee when incurred and recognized as income by lessor respectively. Do correct me plz
Lease classification
Is this correct that a same lease may be classified differently by lessee and lessor (this is what I concluded from Para 9)
Initial direct cost
PLz summarize treatment of initial direct cost w.r.t lessee, lessor (including manufacture dealer lessor), in case of finance and operating leaseâ¦I m a bit confused...Thx
Some queries???
Non cancellable lease
Non cancellable lease (definition part (D)) i.e. upon payment of such an additional amount (at inception of lease) that continuation of lease is reasonably certainableâ¦What major difference in lease there would be, regarding practical application ,if it is cancellable or non cancellableâ¦
Most of operating leases are cancellable...If this is the case we donât need to give any disclosure (Para 35) Am I right?
Can a finance lease be cancellableâ¦if yes, how and what would be its implications?
MLP
MLP definition last Para , i.e. purchase option at lower than F.V at option exercisability date,MLP also comprises then payment required to exercise that option â¦Why lower than F.V,if payment = F.V ,it would be an operating lease(Para 13),then what , it is even then the part of MLPâ¦
Fair Value
Fair Value amount 4 which asset could be exchanged or liability settled b/w knowledgeable, willing parties in an armâs length transaction. What exactly is meant by knowledgeable, willing parties B/C an armâs length transaction can even take place at a nominal amount
Interest rate implicit in lease
Interest rate implicit in lease = rate at which, net investment in finance lease = Fair value +initial direct cost, M I right?
Contingent rent
What is contingent rent.Plz explainâ¦.they (contingent rent, service costs, taxes paid to lessor etc) are expensed out by lessee when incurred and recognized as income by lessor respectively. Do correct me plz
Lease classification
Is this correct that a same lease may be classified differently by lessee and lessor (this is what I concluded from Para 9)
Initial direct cost
PLz summarize treatment of initial direct cost w.r.t lessee, lessor (including manufacture dealer lessor), in case of finance and operating leaseâ¦I m a bit confused...Thx
