AC2101 S1 2014 Seminar 5 Leases (Anil).pptx

That land has indenite life 10 5 review investment

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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...
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This document was uploaded on 02/10/2014.

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