AC2101 S1 2014 Seminar 5 Leases (Anil).pptx

That land has indenite life 10 5 review investment

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: guaranteed RV *  Recall that unGRV is that portion of the residual value of the leased asset, the realisation of which by the lessor is not assured, or is guaranteed solely by a party RELATED to the lessor. *  UnGRV at the end of the lease term * Lessor: UnGRV taken into account in determining (i) ALP, (ii) depreciation and (iii) Gross investment in the lease * Lessee: unGRV ignored, as if no RV 9 A Note on leasehold land & building *  Leasehold land and building to be separately accounted for •  Question: Is 99- year leasehold land an operating lease or finance lease? *  (Old) IAS 17: land has indefinite life, so leasehold land to be accounted for as operating lease unless title is expected to pass to lessee at end of lease term *  From 1.1.2010, the above para. deleted *  The 5 tests to be applied in classifying lease...
View Full Document

Ask a homework question - tutors are online