04-02-2009, 07:39 PM
Dear huu_tung87,
I have replied you in the context of International Accounting Standards - 17 as applicable in Pakistan. I think there is no differenc of definition of MLP as you quoted in ASSB 117 and IAS-17.
Agree. It comes to 96.14%. I ommited the Present value of GRV which should also become the part of MLP and according to that criteria no. 3 mentioned in earlier post it should be classfied as finance lease.
As per IAS-17, Leases, if any one of the criteria mentioned (1-8) in my earlier post, is met the lease should be accounted for as finance lease.
Therefore in my opinion it should be classified as finance lease because one criteria has been met.
Actually the word "major" and "substantial" is not defined in International Accounting Standards therefore i quoted the reference of US GAAP.
Hope it shall serve your purpose.
Regards,
*
I have replied you in the context of International Accounting Standards - 17 as applicable in Pakistan. I think there is no differenc of definition of MLP as you quoted in ASSB 117 and IAS-17.
Agree. It comes to 96.14%. I ommited the Present value of GRV which should also become the part of MLP and according to that criteria no. 3 mentioned in earlier post it should be classfied as finance lease.
As per IAS-17, Leases, if any one of the criteria mentioned (1-8) in my earlier post, is met the lease should be accounted for as finance lease.
Therefore in my opinion it should be classified as finance lease because one criteria has been met.
Actually the word "major" and "substantial" is not defined in International Accounting Standards therefore i quoted the reference of US GAAP.
Hope it shall serve your purpose.
Regards,
*
