AS 19 - 359 Accounting Standard (AS) 19 (issued 2001)...

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Unformatted text preview: 359 Accounting Standard (AS) 19 (issued 2001) Leases Contents OBJECTIVE SCOPE Paragraphs 1-2 DEFINITIONS 3-4 CLASSIFICATION OF LEASES 5-10 LEASES IN THE FINANCIAL STATEMENTS OF LESSEES 11-25 Finance Leases 11-22 Operating Leases 23-25 LEASES IN THE FINANCIAL STATEMENTS OF LESSORS 26-46 Finance Leases 26-38 Operating Leases 39-46 SALE AND LEASEBACK TRANSACTIONS 47-55 APPENDIX Accounting Standard (AS) 19 (issued 2001) Leases (This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its objective and the Preface to the Statements of Accounting Standards 1 .) Accounting Standard (AS) 19, ‘Leases’ , issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of all assets leased during accounting periods commencing on or after 1.4.2001 and is mandatory in nature 2 from that date. Accordingly, the ‘Guidanc e Note on Accounting for Leases ’ issued by the Institute in 1995, is not applicable in respect of such assets. Earlier application of this Standard is, however, encouraged. In respect of accounting periods commencing on or after 1-4-2004 3 , an enterprise which does not fall in any of the following categories need not disclose the information required by paragraphs 22(c), (e) and (f); 25(a), (b) and (e); 37(a), (f) and (g); and 46(b), (d) and (e), of this Standard: (i) Enterprises whose equity or debt securities are listed whether in India or outside India. (ii) Enterprises which are in the process of listing their equity or debt securities as evidenced by the board of directors ’ resolution in this regard. 1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 2 Reference may be made to the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India’ appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard. 3 AS 19 was originally made mandatory, in its entirety, for all enterprises in respect of all assets leased during accounting periods commencing on or after 1-4-2001. Leases 361 (iii) Banks including co-operative banks. (iv) Financial institutions. (v) Enterprises carrying on insurance business. (vi) All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 50 crore....
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AS 19 - 359 Accounting Standard (AS) 19 (issued 2001)...

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