Property, Plant & Equipment and Leases 18 October 2012
|
|
- Godfrey Booth
- 5 years ago
- Views:
Transcription
1 Property, Plant & Equipment and s 18 October 2012 LAM Chi Yuen Nelson 林智遠 MBA MSc BBA ACA ACS CFA FCPA(Aust.) CPA(US) CTA FCCA FCPA FHKIoD FTIHK MHKSI MSCA Nelson Consulting Limited 1 Today s Agenda IAS 16 Property, Plant and Equipment IAS 17 s Nelson Consulting Limited 2 1
2 Property, Plant and Equipment (IAS 16) Nelson Consulting Limited 3 Today s Agenda Definition 1. Objective and Scope 2. Definitions Recognition 3. Recognition 4. Measurement At Recognition Measurement 5. Measurement After Recognition 6. Derecognition Presentation and Disclosure 7. Disclosure Nelson Consulting Limited 4 2
3 Today s Agenda 1. Objective and Scope Nelson Consulting Limited 5 1. Objective and Scope The objective of IAS 16 is to prescribe the accounting treatment for property, plant and equipment (PPE) so that users of the financial statements can discern information about an entity s investment in its PPE and the changes in such investment. The principal issues in accounting for property, plant and equipment (PPE) are: a) the recognition of the assets, b) the determination of their carrying amounts and c) the depreciation charges and impairment losses to be recognised in relation to them. Definitions What are PPE? Recognition Measurement Nelson Consulting Limited 6 3
4 1. Objective and Scope IAS 16 shall be applied in accounting for PPE except when another standard requires or permits a different accounting treatment. IAS 16 does not apply to: a) property, plant and equipment classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations; b) biological assets related to agricultural activity (see IAS 41 Agriculture); c) the recognition and measurement of exploration and evaluation assets (see IFRS 6 Exploration for and Evaluation of Mineral Resources); or d) mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources. However, IAS 16 applies to PPE used to develop or maintain the assets described in (a) and (d) Nelson Consulting Limited 7 Today s Agenda Definition 1. Objective and Scope 2. Definitions What are PPE? Nelson Consulting Limited 8 4
5 2. Definitions Property, plant and equipment (PPE) are tangible items that: a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and b) are expected to be used during more than one period Nelson Consulting Limited 9 2. Definitions Cost Residual value is the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction, or where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other IFRSs e.g. IAS 39, IFRS 2 Revised but discussed later Nelson Consulting Limited 10 5
6 Today s Agenda Definition 1. Objective and Scope 2. Definitions Recognition 3. Recognition Nelson Consulting Limited Recognition The cost of an item of PPE shall be recognised as an asset if, and only if: a) it is probable that future economic benefits associated with the item will flow to the entity; and b) the cost of the item can be measured reliably. Recognition Criteria Major spare parts, servicing equipment, replacement and inspection can also be qualified as PPE. If the recognition criteria is met, such cost is recognised; the carrying amount of the replaced parts or previous inspection is derecognised. Clearer approach on so-called Component Accounting Nelson Consulting Limited 12 6
7 3. Recognition Case Wynn Macau, Limited (Notes to Financial Statements 2009) Expenditures incurred after items of property and equipment have been brought into use, such as repairs and maintenance, are normally charged to the statement of comprehensive income in the period in which they are incurred. In situations where it can be clearly demonstrated an expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of an item of property and equipment, and where the cost of the item can be measured reliably, the expenditure is capitalized as an additional cost of that asset or as a replacement Nelson Consulting Limited Recognition Case Galaxy Entertainment Group Limited (2009 Annual Report) Subsequent costs are included in the carrying amount of the asset or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed in the income statement during the financial period in which they are incurred Nelson Consulting Limited 14 7
8 Today s Agenda Definition 1. Objective and Scope 2. Definitions Recognition Measurement 3. Recognition 4. Measurement At Recognition Nelson Consulting Limited Measurement at Recognition An item of PPE that qualifies for recognition as an asset shall be measured at its cost. Cost the amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction, or where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other IFRSs e.g. IAS 39, IFRS Nelson Consulting Limited 16 8
9 4. Measurement at Recognition The cost of an item of PPE comprises: a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates; b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period. Purchase Price Directly Attributable Cost Dismantling Cost Nelson Consulting Limited Measurement at Recognition Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management. Therefore, costs incurred in using or redeploying an item are not included in the carrying amount of that item. For example: Costs incurred while an item capable of operating in the manner intended by management has yet to be brought into use or is operated at less than full capacity; Initial operating losses, such as those incurred while demand for the item s output builds up; and Costs of relocating or reorganizing part or all of an entity s operations. Not part of the cost of PPE Nelson Consulting Limited 18 9
10 4. Measurement at Recognition Example Entity A leased an office for a lease term of 5 years in 2010 and incurred $500,000 in decorating the office. The lease requires Entity A to restore the office to its original status when the lease expires. Entity A estimates that the cost of restoration will be around $60,000 at that time. Determine the cost of the decoration. The cost of the decoration: Cost of decoration: $500,000 Initial estimate of restoring the site: Present value of $60,000 IFRIC Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities set out how to account for the change of this estimate Assuming discount rate is 6%, PV of $60,000 is $ 44,835 Total initial cost is $ 544, Nelson Consulting Limited Measurement at Recognition Case Amax Holdings Limited (Notes to the financial statements 2008) The cost of self-constructed items of property, plant and equipment includes the cost of materials, direct labour, the initial estimate, where relevant, of the costs of dismantling and removing the items and restoring the site on which they are located, and an appropriate proportion of production overheads and borrowing costs Nelson Consulting Limited 20 10
11 4. Measurement at Recognition Example Entity A operates an offshore oilfield where its 20-year licensing agreement requires it to remove the oil rig at the end of production and restore the seabed. Costs of removal of the oil rig and restoration of the seabed include: 75% relates to damage caused by building the oil rig 10% relates to damage 85% caused by regular maintenance of the oil rig 15% arises through the extraction of oil The cost of the oil rig includes the best estimate of 85% of the eventual costs a provision in the amount of that cost will be recognised when the oil rig has been constructed. removal of the oil rig and restoration of damage caused by building it for purposes, other than to produce inventories during that period recognised as a liability when the oil is extracted Nelson Consulting Limited Measurement at Recognition Element of cost extended Rule on Exchange of Assets Revised Same amendment in IAS 38 and IAS 40 Cost of PPE acquired in exchange is measured at fair value But not required if: Commercial Substance Fair Value of Exchanged Asset the exchange transaction lack of Commercial Substance, or the Fair Value is not reliably measurable (both asset received and given up) If the acquired item is not measured at fair value, its cost is measured at the carrying amount of the asset given up Nelson Consulting Limited 22 11
12 4. Measurement at Recognition Commercial Substance To determine Commercial Substance considering the extent to which its future cash flows are expected to change as a result of the transaction Commercial Substance exists if: a) the configuration (risk, timing and amount) of the cash flows of the asset received differs from that of the asset transferred; or b) the entity-specific value of the portion of the entity s operations affected by the transaction changes as a result of the exchange; and c) the difference in (a) or (b) is significant relative to the fair value of the assets exchanged Nelson Consulting Limited Measurement at Recognition Fair Value of Exchanged Asset Even comparable market transactions do not exist, Fair Value of an asset is reliably measurable if a) the variability in the range of various reasonable fair value estimates is not significant for that asset, or b) the probabilities of the various estimates within the range can be reasonably assessed and used in estimating fair value. If an entity is able to determine reliably the fair value of either the asset received or the asset given up then the fair value of the asset given up is used to measure the cost of the asset received unless the fair value of the asset received is more clearly evident Nelson Consulting Limited 24 12
13 Today s Agenda Definition 1. Objective and Scope 2. Definitions Recognition 3. Recognition 4. Measurement At Recognition Measurement 5. Measurement After Recognition Nelson Consulting Limited Measurement after Recognition An entity shall choose either: Cost Model Revaluation Model as its accounting policy and the entity shall apply that policy to an entire class of PPE Nelson Consulting Limited 26 13
14 5. Measurement after Recognition Cost Model Revaluation Model After recognition as an asset, an item of PPE shall be carried at Its cost less any accumulated depreciation and any accumulated impairment losses After recognition as an asset, an item of PPE shall be carried at a revalued amount, being its fair value at the date of the revaluation, Less any subsequent accumulated depreciation and subsequent accumulated impairment losses Nelson Consulting Limited Measurement after Recognition Revaluation Model Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from the fair value at the balance sheet date. The frequency of revaluations depends upon the changes in fair values of the items of PPE being revalued. a) When the fair value of a revalued asset differs materially from its carrying amount, a further revaluation is required. b) Some items of PPE experience significant and volatile changes in fair value, thus necessitating annual revaluation. c) Such frequent revaluations are unnecessary for items of PPE with only insignificant changes in fair value. Instead, it may be necessary to revalue the item only every 3 or 5 years Nelson Consulting Limited 28 14
15 5. Measurement after Recognition Revaluation Model If an item of property, plant and equipment is revalued, the entire class of PPE to which that asset belongs shall Class be revalued If an asset s carrying amount is increased as a result of a revaluation, the increase shall be recognised in other comprehensive income (OCI) and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss. Entire class To OCI directly Nelson Consulting Limited Measurement after Recognition Revaluation Model If an asset s carrying amount is decreased as a result of a revaluation, the decrease shall be recognised in profit or loss. However, the decrease shall be recognised in other comprehensive income (OCI) to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognised in other comprehensive income (OCI) reduces the amount accumulated in equity under the heading of revaluation surplus. Negative to P/L Nelson Consulting Limited 30 15
16 5. Measurement after Recognition Revaluation Model A class of PPE is a grouping of assets of a similar nature and use in an entity s operations and examples of classes include: Land; Land and buildings; Machinery; Ships; Aircraft; Motor vehicles; Furniture and fixtures; and Office equipment The items within a class of PPE are revalued simultaneously to avoid selective revaluation of assets and the reporting of amounts in the financial statements that are a mixture of costs and values as at different dates Nelson Consulting Limited Measurement after Recognition Revaluation Model Example In 2010, an entity buys a PPE at $1,000 and adopts revaluation model. At year end of 2010, PPE s fair value rises to $1,500. At year end of 2011, PPE s fair value falls to $800. Ignore the depreciation, prepare journal for each situation above. Dr PPE 1,000 Cr Cash 1,000 Dr PPE (1,500 1,000) 500 Cr OCI 500 Dr OCI 500 Profit and loss 200 Cr PPE (1, ) Nelson Consulting Limited 32 16
17 5. Measurement after Recognition Revaluation Model The revaluation surplus included in equity in respect of an item of PPE may be transferred directly to retained earnings when the asset is derecognised. However, some of the surplus may be transferred as the asset is used by an entity. In such a case, the amount of the surplus transferred would be the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset s original cost. Dr Cr Revaluation surplus (depreciation based on the revalued carrying amount less depreciation based on the asset s historical cost) Retained earnings Transfers from revaluation surplus to retained earnings are not made through profit or loss Nelson Consulting Limited Measurement after Recognition Revaluation Model CJS Limited bought a car with a cost of $50,000 on 1 Jan and adopted the revaluation model. The estimated useful life of the car is 5 years. On 1 Jan. 2012, the car was revalued with a fair value of $48,000 at that date. Prepare the journal entries for the year ended 31 December 2011 and 31 December Year ended Example Dr PPE 50,000 Cr Cash 50,000 Dr P/L ($50K 5 years) 10,000 Cr Accumulated depreciation 10,000 Dr Accumulated depreciation (48K (50K 10K)) 8,000 Cr Revaluation reserves 8,000 Year ended Dr P/L ($48K 4 years) 12,000 Cr Accumulated depreciation 12,000 Dr Revaluation reserves 2,000 Cr Retained earnings 2, Nelson Consulting Limited 34 17
18 5. Measurement after Recognition Cost Model Depreciation Revaluation Model Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Useful life is: a) the period over which an asset is expected to be available for use by an entity; or b) the number of production or similar units expected to be obtained from the asset by an entity. The residual value of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life Nelson Consulting Limited Measurement after Recognition Case Wynn Macau, Limited (Annual Report 2009) Depreciation Depreciation is calculated on a straight-line basis to write off the cost of each item of property and equipment to its residual value over the shorter of the remaining term of the gaming concession (for designated gaming assets and space) or land concession (for all other assets), as applicable, or their estimated useful lives Nelson Consulting Limited 36 18
19 5. Measurement after Recognition Depreciation Each part of an item of PPE with a cost that is significant in relation to the total cost of the item shall be depreciated separately. e.g. it may be appropriate to depreciate separately the airframe and engines of an aircraft The depreciation charge for each period shall be recognised in profit or loss unless it is included in the carrying amount of another asset. Each significant component shall be depreciated separately (not clearly required in the past) Clearer approach on so-called Component Accounting Nelson Consulting Limited Measurement after Recognition Example Depreciation At 1 Jan. 2010, AX bought a laser printing machine of $50 million The machine will be used for 5 years (maximum useful life) and then dispose of at zero value The machine s laser head can operate 500 hours, after that replacement of a new laser head is needed The cost of a new laser head was $10 million at that time and its residual value is zero. Cost of each part is significant in relation to the total cost of the parts Each part should be depreciated separately Laser machine other than laser head is depreciated over 5 years Laser head is depreciated over 500 hours Under usage methods of depreciation, the depreciation charges can be zero while there is no production Nelson Consulting Limited 38 19
20 5. Measurement after Recognition Example Depreciation At 1 Jan. 2010, AX bought a laser printing machine of $50 million The machine will be used for 5 years (maximum useful life) and then dispose of at zero value The machine s laser head can operate 500 hours, after that replacement of a new laser head is needed The cost of a new laser head was $10 million at that time and its residual value is zero. Assume the laser head can operate 500 hours or 5 years, which is shorter. If the machine has not been used in the 2nd year, calculate depreciation on the laser head under different depreciation methods If the laser head is depreciated over 500 hours (unit of production) 5 years on a straight-line basis Depreciation for 2nd year zero $2 million Nelson Consulting Limited Measurement after Recognition The depreciable amount of an asset shall be allocated on a systematic basis over its useful life. The residual value and the useful life of an asset shall be reviewed at least at each financial year-end if expectations differ from previous estimates, the change shall be accounted for as a change in an accounting estimate in accordance with IAS 8 Depreciation Depreciable amount Nelson Consulting Limited 40 20
21 5. Measurement after Recognition Depreciation Residual Value Depreciable amount Residual Value is updated as the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life Inflation may be incorporated in residual value Nelson Consulting Limited Measurement after Recognition Depreciation Residual Value Depreciable amount As stated before, definition of Residual Value is revised as the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life Inflation may be incorporated in residual value New requirements (on both residual value and useful life) shall be reviewed at least at each financial year end if expectations differ from previous estimates, the change shall be accounted for as a change in an accounting estimate in accordance with IAS Nelson Consulting Limited 42 21
22 5. Measurement after Recognition Depreciation Useful Life Depreciable amount The following factors are considered in determining the useful life of an asset, however, it often results in the diminution of the economic benefits that might have been obtained from the asset. Expected usage of the asset. Usage is assessed by reference to the asset s expected capacity or physical output. Expected physical wear and tear, which depends on operational factors such as the number of shifts for which the asset is to be used and the repair and maintenance programme, and the care and maintenance of the asset while idle. Technical or commercial obsolescence arising from changes or improvements in production, or from a change in the market demand for the product or service output of the asset. Legal or similar limits on the use of the asset, such as the expiry dates of related leases Nelson Consulting Limited Measurement after Recognition Depreciation of an asset begins when it is available for use i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 and the date that the asset is derecognised Land and buildings are separable assets and are accounted for separately, even when they are acquired together. Depreciation Depreciable amount Implied that depreciation still required even PPE becomes idle or is retired from active use Nelson Consulting Limited 44 22
23 5. Measurement after Recognition The depreciation method used shall reflect the pattern in which the asset s future economic benefits are expected to be consumed by the entity shall be reviewed at least at each financial year-end and such a change shall be accounted for as a change in an accounting estimate in accordance with IAS 8 Other than the above, that method is applied consistently from period to period unless there is a change in the expected pattern of consumption of those future economic benefits. Depreciation Depreciable amount Depreciation method Nelson Consulting Limited Measurement after Recognition IAS 16 states that: Depreciation A variety of depreciation methods Depreciable amount can be used to allocate the depreciable amount of an asset on Depreciation method a systematic basis over its useful life. These methods include: results in a constant charge over the useful Straight Line life if the asset s residual value does not change Diminishing Balance results in a decreasing charge over the useful life Units of Production results in a charge based on the expected use or output Nelson Consulting Limited 46 23
24 5. Measurement after Recognition To determine whether an item of PPE is impaired, an entity applies IAS 36 Compensation from third parties for items of property, plant and equipment that were impaired, lost or given up shall be included in profit or loss when the compensation becomes receivable Depreciation Depreciable amount Depreciation method Impairment Nelson Consulting Limited 47 Today s Agenda Definition 1. Objective and Scope 2. Definitions Recognition 3. Recognition 4. Measurement At Recognition Measurement 5. Measurement After Recognition 6. Derecognition Nelson Consulting Limited 48 24
25 6. Derecognition The carrying amount of an item of PPE shall be derecognised: a) on disposal; or b) when no future economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item of PPE shall be included in profit or loss when the item is derecognised (unless IAS 17 requires otherwise on a sale and leaseback). Gains shall not be classified as revenue. Amended by Annual Improvement Project Nelson Consulting Limited Derecognition Gain (on derecognition of PPE) shall not be classified as revenue. (IAS 16.68) Amendment introduces IAS 16.68A that: However, an entity that, in the course of its ordinary activities, routinely sells items of PPE that it has held for rental to others shall transfer such assets to inventories at their carrying amount when they cease to be rented and become held for sale. The proceeds from the sale of such assets shall be recognised as revenue in accordance with IAS 18 Revenue. IFRS 5 does not apply when assets that are held for sale in the ordinary course of business are transferred to inventories. In some industries, entities are in the business of renting and subsequently selling the same assets, for example, car rental company Nelson Consulting Limited 50 25
26 6. Derecognition Derecognition on disposal The disposal of an item of PPE may occur in a variety of ways (e.g. by sale, by entering into a finance lease or by donation). In determining the date of disposal of an item, an entity applies the criteria in IAS 18 Revenue for recognising revenue from the sale of goods. IAS 17 s applies to disposal by a sale and leaseback Nelson Consulting Limited Derecognition Case Melco Development Limited ( 新濠國際發展有限公司 ) Accounting policies for year ended An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the asset is derecognised Nelson Consulting Limited 52 26
27 6. Derecognition Derecognition on replacement If, under the initial recognition principle, an entity recognises in the carrying amount of an item of PPE the cost of a replacement for part of the item, then it derecognises the carrying amount of the replaced part regardless of whether the replaced part had been depreciated separately. The gain or loss arising from the derecognition of an item of PPE shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item Nelson Consulting Limited 53 Today s Agenda Definition 1. Objective and Scope 2. Definitions Recognition 3. Recognition 4. Measurement At Recognition Measurement 5. Measurement After Recognition 6. Derecognition Presentation and Disclosure 7. Disclosure Nelson Consulting Limited 54 27
28 7. Disclosure The financial statements shall disclose, for each class of PPE: a) the measurement bases used for determining the gross carrying amount; b) the depreciation methods used; c) the useful lives or the depreciation rates used; d) the gross carrying amount and the accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the period; and Nelson Consulting Limited Disclosure Detailed information and reconciliation of the carrying amount of PPE are required The reconciliation of the carrying amount of PPE for prior period, i.e. comparative reconciliation is now required Nelson Consulting Limited 56 28
29 7. Disclosure Information include: i) additions; ii) disposals; iii) acquisitions through business combinations; iv) increases or decreases resulting from revaluations and from impairment losses recognised or reversed directly in equity in accordance with HKAS 36; v) impairment losses recognised in profit or loss in accordance with HKAS 36; vi) impairment losses reversed in profit or loss in accordance with HKAS 36; vii) depreciation; viii) the net exchange differences arising on the translation of the financial statements from the functional currency into a different presentation currency, including the translation of a foreign operation into the presentation currency of the reporting entity; and ix) other changes Nelson Consulting Limited Disclosure The financial statements shall also disclose: a) the existence and amounts of restrictions on title, and PPE pledged as security for liabilities; b) the amount of expenditures recognised in the carrying amount of an item of PPE in the course of its construction; c) the amount of contractual commitments for the acquisition of PPE; and d) if it is not disclosed separately on the face of the income statement, the amount of compensation from third parties for items of PPE that were impaired, lost or given up that is included in profit or loss. Similar disclosures are required on the PPE measured by using Revaluation Model Nelson Consulting Limited 58 29
30 7. Disclosure Selection of the depreciation method and estimation of the useful life of assets are matters of judgment. Therefore, disclosure of the methods adopted and the estimated useful lives or depreciation rates provides users of financial statements with information that allows them to review the policies selected by management and enables comparisons to be made with other entities. For similar reasons, it is necessary to disclose: a) depreciation, whether recognised in profit or loss or as a part of the cost of other assets, during a period; and b) accumulated depreciation at the end of the period. In accordance with HKAS 8 an entity discloses the nature and effect of a change in an accounting estimate that has an effect in the current period or is expected to have an effect in subsequent periods. For PPE, such disclosure may arise from changes in estimates with respect to: a) residual values; b) the estimated costs of dismantling, removing or restoring items of property, plant and equipment; c) useful lives; and d) depreciation methods Nelson Consulting Limited Disclosure If items of property, plant and equipment are stated at revalued amounts, the following shall be disclosed: a)the effective date of the revaluation; b)whether an independent valuer was involved; c)the methods and significant assumptions applied in estimating the items fair values; d)the extent to which the items fair values were determined directly by reference to observable prices in an active market or recent market transactions on arm s length terms or were estimated using other valuation techniques; e)for each revalued class of property, plant and equipment, the carrying amount that would have been recognised had the assets been carried under the cost model; and f) the revaluation surplus, indicating the change for the period and any restrictions on the distribution of the balance to shareholders Nelson Consulting Limited 60 30
31 7. Disclosure Users of financial statements may also find the following information relevant to their needs: a) the carrying amount of temporarily idle PPE; b) the gross carrying amount of any fully depreciated PPE that is still in use; c) the carrying amount of PPE retired from active use and held for disposal; and d) when the cost model is used, the fair value of property, plant and equipment when this is materially different from the carrying amount. Therefore, entities are encouraged to disclose these amounts Nelson Consulting Limited 61 Today s Agenda IAS 16 Property, Plant and Equipment IAS 17 s Nelson Consulting Limited 62 31
32 s (IAS 17) Nelson Consulting Limited 63 Today s Agenda 1. Objective and Scope 2. Classification of s Classification of Land and Buildings 3. Lessees Financial Statements 4. Lessors Financial Statements 5. Sale and back Transactions Nelson Consulting Limited 64 32
33 1. Objective and Scope The objective of IAS 17 s is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation to leases. A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time Nelson Consulting Limited Objective and Scope IAS 17 shall be applied in accounting for all leases other than: a) leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources; and b) licensing agreements for such items as motion picture films, video recordings, plays, manuscripts, patents and copyrights. IAS 17 shall not be applied as the basis of measurement for: a) property held by lessees that is accounted for as investment property (see IAS 40), b) investment property provided by lessors under operating leases (see IAS 40), c) biological assets held by lessees under finance leases (see IAS 41), or d) biological assets provided by lessors under operating leases (see IAS 41) Nelson Consulting Limited 66 33
34 1. Objective and Scope IAS 17 s Applies to agreements that transfer the right to use assets even though substantial services by the lessor may be called for in connection with the operation or maintenance of such assets. But does not apply to agreements that are contracts for services that do not transfer the right to use assets from one contracting party to the other Nelson Consulting Limited 67 Today s Agenda 1. Objective and Scope 2. Classification of s Classification of Land and Buildings Nelson Consulting Limited 68 34
35 2. Classification of s The classification of leases adopted in IAS 17 Is based on the extent to which risks and rewards incidental to ownership of a leased asset lie the the lessor or the leseee. Risks and Rewards Finance Operating A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred. An operating lease is a lease other than a finance lease Nelson Consulting Limited Classification of s Risks include the possibilities of losses from idle capacity or technological obsolescence and of variations in return because of changing economic conditions. Rewards may be represented by the expectation of of profitable operation over the asset s economic life and of gain from appreciation in value or realisation of a residual value. Risks and Rewards Finance A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. Operating A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership Nelson Consulting Limited 70 35
36 2. Classification of s Case Galaxy Entertainment Group Limited (2009 Annual Report) s that substantially transfer to the Group all the risks and rewards of ownership of assets are accounted for as finance leases... s in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases Nelson Consulting Limited Classification of s Example Is a hire purchase contract a lease? The definition of a lease includes contracts for the hire of an asset that contain a provision giving the hirer an option to acquire title to the asset upon the fulfilment of agreed conditions. These contracts are sometimes known as hire purchase contracts. Finance Operating Is a hire purchase contract classified as a finance lease or an operating lease? Nelson Consulting Limited 72 36
37 2. Classification of s Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than the form of the contract. Indicators of a finance lease include: Finance Operating a) the lease transfers ownership of the asset to the lessee by the end of the lease term; b) the lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the option will be exercised; c) the lease term is for the major part of the economic life of the asset even if title is not transferred; d) at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset; and e) the leased assets are of such a specialised nature that only the lessee can use them without major modifications Nelson Consulting Limited Classification of s Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than the form of the contract. Indicators of a finance lease include: What is term? Economic life? Inception of a lease? Minimum lease payment Finance Operating Major part? c) the lease term is for the major part of the economic life of the asset even if title is not transferred; d) at the inception of the lease the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset; and Substantially all? Nelson Consulting Limited 74 37
38 2. Classification of s Whether a lease is a finance lease or an operating lease depends on the substance of the transaction rather than the form of the contract. Finance Operating Indicators of situations that individually or in combination could also lead to a lease being classified as a finance lease are: a) if the lessee can cancel the lease, the lessor s losses associated with the cancellation are borne by the lessee; b) gains or losses from the fluctuation in the fair value of the residual accrue to the lessee (for example, in the form of a rent rebate equalling most of the sales proceeds at the end of the lease); and c) the lessee has the ability to continue the lease for a secondary period at a rent that is substantially lower than market rent Nelson Consulting Limited Classification of s classification is made at the inception of the lease. What is inception of the lease? Finance Operating The inception of the lease is the earlier of the date of the lease agreement and the date of commitment by the parties to the principal provisions of the lease. As at this date: a) a lease is classified as either or a finance or an operating lease; and b) in the case of a finance lease, the amounts to be recognised at the commencement of the lease term are determined Nelson Consulting Limited 76 38
39 2. Classification of s Finance Operating The lease term is the non-cancellable period for which the lessee has contracted to lease the asset together with any further terms for which the lessee has the option to continue to lease the asset, with or without further payment, when at the inception of the lease it is reasonably certain that the lessee will exercise the option. The commencement of the lease term is the date from which the lessee is entitled to exercise its right to use the leased asset. It is the date of initial recognition of the lease (i.e. the recognition of the assets, liabilities, income or expenses resulting from the lease, as appropriate) Nelson Consulting Limited Classification of s Example Determine the lease term of the following leases: 1. A lease with 2-year initial term and another 2-year further term. The lessor has an option to cancel the further term. 2. A lease with 2-year initial term. The lessee has the right to extend 2- year further term but he had not decided to take this term at the inception of the lease. 3. A lease with the same term as the above term but the lessee has decided to take the further term at the inception of the lease. term: 2 years The lessee has no discretionary right to renew term: 2 years It is not reasonably certain that the lessee will exercise the option term: 4 years It is reasonably certain that the lessee will exercise the option Nelson Consulting Limited 78 39
40 2. Classification of s Finance Operating Minimum lease payments are the payments over the lease term that the lessee is or can be required to make, excluding contingent rent, costs for services and taxes to be paid by and reimbursed to the lessor, together with: a) for a lessee, any amounts guaranteed by the lessee or by a party related to the lessee; or b) for a lessor, any residual value guaranteed to the lessor by: i) the lessee; ii) a party related to the lessee; or iii) a third party unrelated to the lessor that is financially capable of discharging the obligations under the guarantee Nelson Consulting Limited Classification of s Example Determine the minimum lease payment (MLP) of the following lease to the lessee and the lessor: AJS Ltd. has a 5-year lease to rent its office with an annual payment of $10,000. It makes a guarantee to the lessor, C & P Inc., that the office should have a value not less than $10,000. It s parent, AJS Holding Inc., also makes a further guarantee of $10,000 C & P Inc. in turn has obtained an additional guarantee of $5,000 from the property agent. For the lessee, AJS Ltd., the MLP is: Payments over the lease term $10,000 5 $50,000 Guarantee (incl. the one from parent) $10,000 + $10,000 20,000 $70,000 For the lessor, C& P, the MLP is: MPL as above $70,000 Guarantee from agent 5,000 $75, Nelson Consulting Limited 80 40
41 2. Classification of s with provision to adjust lease payments the effect of any such changes shall be deemed to have taken place at the inception of the lease for the purposes of IAS 17. Finance Change of provision of a lease, other than by renewing the lease in a manner that would have resulted in a different classification of the lease, the revised agreement is regarded as a new agreement over its term. Operating Nelson Consulting Limited Classification of L&B Amended in 2009 of land of land and buildings of land and of buildings are classified as operating or finance leases in the same way as leases of other assets but Building only Land only Nelson Consulting Limited 82 41
42 2. Classification of Land of land Amended in 2009 of land is classified in the same way as leases of other assets However, as land normally has an indefinite economic life If title of leasehold land is not expected to pass to the lessee Lessee normally does not receive substantially all of the risks and rewards incidental to the ownership In which case the lease of land will be an operating lease payment acquiring such leasehold represents prepaid lease payments amortised over the lease term in accordance with the pattern of benefits provided. (IAS 17.14) Land only hold land without title pass Operating Nelson Consulting Limited Classification of L&B Amended in 2009 of land of land and buildings Separate measurement (of the land and buildings elements) Land and Building Building only Land only Nelson Consulting Limited 84 42
43 2. Classification of L&B If a lease contains land and buildings elements 2 elements are considered Title passed to separately for lease classification the lessee? If title of both elements is expected to No pass to the lessee Both elements are classified as finance lease If title of land or both elements is NOT expected to pass to the lessee The land element alone (as having Land indefinite life) is normally classified as an operating lease. No The building element is considered separately. (IAS 17.15) Operating Amended in 2009 of land and buildings Building Finance Nelson Consulting Limited 85 Yes Indicators of finance lease? Yes 2. Classification of L&B IAS and 15 are deleted and IAS 17.15A is added as follows: Amendments to IAS 17 issued in 2009 When a lease includes both land and buildings elements, an entity assesses the classification of each element as a finance or an operating lease separately in accordance with IAS In determining whether the land element is an operating or a finance lease, an important consideration is that land normally has an indefinite economic life Nelson Consulting Limited 86 43
44 2. Classification of L&B Example IASB describes in IAS 17.BC8B and BC8C that: For example, consider a 999-year lease of land and buildings. In this situation, significant risks and rewards associated with the land during the lease term would have been transferred to the lessee despite there being no transfer of title. The Board noted that the lessee in leases of this type will typically be in a position economically similar to an entity that purchased the land and buildings. The present value of the residual value of the property in a lease with a term of several decades would be negligible. The Board concluded that the accounting for the land element as a finance lease in such circumstances would be consistent with the economic position of the lessee. Unclear how long the lease term must be for the IASB to conclude that a lessee and a purchaser are in the same economic position Nelson Consulting Limited Classification of L&B Case Galaxy Entertainment Group Limited (2009 Annual Report) The Group has early adopted HKAS 17 (Amendment) s, which is mandatory for accounting periods beginning on and after 1 January HKAS 17 (Amendment) requires the Group to reassess the classification of leasehold land as finance or operating lease. Upon adoption, the opening balances have been assessed and classified accordingly. Current year addition to leasehold land has been classified based on the underlying criteria of HKAS Nelson Consulting Limited 88 44
45 2. Classification of L&B Case Financial Statements 2009 Note 2 states (for early adoption of Amendment to HKAS 17 in 2009): The early adoption of the amendment to HKAS 17 has resulted in a change in accounting policy for the classification of leasehold land of the Group. Previously, leasehold land was classified as an operating lease and stated at cost less accumulated amortisation. In accordance with the amendment, leasehold land is classified as a finance lease and stated at cost less accumulated depreciation if substantially all risks and rewards of the leasehold land have been transferred to the Group. As the present value of the minimum lease payments (ie, the transaction price) of the land held by the Group amounted to substantially all of the fair value of the land as if it were freehold, the leasehold land of the Group has been classified as a finance lease. The amendment has been applied retrospectively to unexpired leases at the date of adoption of the amendment on the basis of information existing at the inception of the leases. The amendment does not apply to the leasehold land disposed of by the Group in prior years Nelson Consulting Limited Classification of L&B of land and buildings To classify and account for a lease of land and buildings the minimum lease payments (including any lump-sum upfront payments) are allocated between the land and Relative Fair Value the buildings elements in proportion to the relative fair values of the leasehold interests in the land element and buildings element of the lease at the inception of the lease Land only Building only Nelson Consulting Limited 90 45
46 2. Classification of L&B of land and buildings If the lease payments cannot be allocated reliably between the 2 elements the entire lease is classified as a finance lease unless it is clear that both elements are operating leases, in which case the entire lease is classified as an operating lease For a lease of land and building if the land is immaterial The lease may be treated as a single unit and classified as finance or operating leases Land only Building only Nelson Consulting Limited 91 Today s Agenda 1. Objective and Scope 2. Classification of s Classification of Land and Buildings 3. Lessees Financial Statements Finance Operating After a proper classification is made from the lessee s view Nelson Consulting Limited 92 46
47 3. Lessees Financial Statements Initial Recognition and Measurement Finance At lease commencement, lessees shall recognise finance leases as assets and liabilities in their statements of financial position at amounts equal to a) the fair value of the leased property, or b) if lower, the present value of the minimum lease payments, each determined at the inception of the lease. The discount rate to be used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease, if this is practicable to determine; if not, the lessee's incremental borrowing rate shall be used. Any initial direct costs of the lessee are added to the amount recognised as an asset Nelson Consulting Limited Lessees Financial Statements Subsequent Measurement Finance Minimum lease payments shall be apportioned between a) the finance charge and b) the reduction of the outstanding liability. Finance charge allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents charged as expenses in the periods in which they are incurred. Contingent rent is that portion of the lease payments that is not fixed in amount but is based on the future amount of a factor that changes other than with the passage of time e.g. percentage of future sales, amount of future use, future price indices, future market rates of interest Nelson Consulting Limited 94 47
48 3. Lessees Financial Statements Subsequent Measurement Finance A finance lease gives rise to depreciation expense for depreciable assets as well as finance expense for each accounting period The depreciation policy for depreciable leased assets consistent with that for depreciable assets that are owned, and the depreciation recognised shall be calculated in accordance with HKAS 16 and HKAS 38 If there is no reasonable certainty that the lessee will obtain ownership by the end of the lease term the asset shall be fully depreciated over the shorter of the lease term and its useful life Nelson Consulting Limited Lessees Financial Statements Case Wynn Macau, Limited (Prospectus Accountants Report 2009) Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Dr Assets Cr Liabilities payments are apportioned between the finance charges and Dr Liabilities P/L Finance charge reduction of the lease liability Cr Cash so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are reflected in profit or loss Nelson Consulting Limited 96 48
49 3. Lessees Financial Statements Disclosures Finance In addition to meeting the requirements of HKAS 32, the following disclosures for finance leases: a) for each class of asset, the net carrying amount at the end of the reporting period. b) a reconciliation between the total of future minimum lease payments at the end of the reporting period, and their present value. In addition, an entity shall disclose the total of future minimum lease payments at the end of the reporting period, and their present value, for each of the following periods: i) not later than one year; ii) later than one year and not later than five years; iii) later than five years. c) contingent rents recognised as an expense in the period. d) the total of future minimum sublease payments expected to be received under non-cancellable subleases at the end of the reporting period. e) a general description of the lessee s material leasing arrangements Nelson Consulting Limited Lessees Financial Statements Case Sands China Limited (Annual Report 2009) Nelson Consulting Limited 98 49
50 3. Lessees Financial Statements Recognition (Initial and Subsequent) payments under an operating lease shall be recognised as an expense on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user s benefit Operating Nelson Consulting Limited Lessees Financial Statements Disclosures Operating Lessees shall, in addition to meeting the requirements of IAS 32, make the following disclosures for operating leases: a) the total of future minimum lease payments under noncancellable operating leases for each of the following periods: i) not later than one year; ii) later than one year and not later than five years; iii) later than five years. b) the total of future minimum sublease payments expected to be received under non-cancellable subleases at the end of the reporting period. c) lease and sublease payments recognised as an expense in the period, with separate amounts for minimum lease payments, contingent rents, and sublease payments. d) a general description of the lessee s significant leasing arrangements Nelson Consulting Limited
51 3. Lessees Financial Statements Case Sands China Limited (Annual Report 2009) Nelson Consulting Limited Lessees Financial Statements SIC Interpretation 15 Operating s Incentives also clarifies that: All incentives for the agreement of a new or renewed operating lease shall be recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive's nature or form or the timing of payments The lessee shall recognise the aggregate benefit of incentives as a reduction of rental expense over the lease term, on a straight-line basis unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset Nelson Consulting Limited
52 3. Lessees Financial Statements Example ABC Limited has signed a 5 years contract to lease a new office from 2012 to 2016 with a monthly rental payment of $20,000. ABC is granted with a rent-free period of 6 months in For the year end 31 December 2012, ABC paid rental of $120,000 and charged it to the income statement. Discuss Nelson Consulting Limited Lessees Financial Statements Answers IAS 17 requires that lease payments under an operating lease shall be recognised as an expense on a straight-line basis over the lease term. The payment made by ABC in 2012 only represents the cash flow ($120,000) and the lease expense for 2012 should be: $20,000 x (60 months 6 months) 5 years = $216,000. In other words, a payable would be accounted for in the financial statements of 2012 as follows: Dr. Payable 120,000 Cr. Cash 120,000 Being cash rental paid during 2012 Dr. Income statement 216,000 Cr. Payable 216,000 Being the rental charges for Nelson Consulting Limited
53 Today s Agenda 1. Objective and Scope 2. Classification of s Classification of Land and Buildings 3. Lessees Financial Statements 4. Lessors Financial Statements Finance Operating After a proper classification is made from the lessor s view Nelson Consulting Limited Lessors Financial Statements Initial Recognition and Measurement Finance Lessors shall a) recognise assets held under a finance lease in their statements of financial position and b) present them as a receivable at an amount equal to the net investment in the lease. Net investment in the lease is the gross investment in the lease discounted at the interest rate implicit in the lease. Gross investment in the lease is the aggregate of: a) the minimum lease payments receivable by the lessor under a finance lease, and b) any unguaranteed residual value accruing to the lessor Unguaranteed residual value 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 Nelson Consulting Limited
54 4. Lessors Financial Statements Subsequent Measurement The recognition of finance income shall be based on a pattern reflecting a constant periodic rate of return on the lessor's net investment in the finance lease Finance Nelson Consulting Limited Lessors Financial Statements s for Manufacturer or Dealer Lessors Finance Manufacturer or dealer lessors shall recognise selling profit or loss in the period, in accordance with the policy followed by the entity for outright sales. If artificially low rates of interest are quoted selling profit shall be restricted to that which would apply if a market rate of interest were charged. Costs incurred by manufacturer or dealer lessors in connection with negotiating and arranging a lease shall be recognised as an expense when the selling profit is recognised Nelson Consulting Limited
55 4. Lessors Financial Statements Disclosures Finance Lessors shall, in addition to meeting the requirements in IAS 32, disclose the following for finance leases: a) a reconciliation between the gross investment in the lease at the end of the reporting period, and the present value of minimum lease payments receivable at the end of the reporting period. In addition, an entity shall disclose the gross investment in the lease and the present value of minimum lease payments receivable at the end of the reporting period, for each of the following periods: i) not later than one year; ii) later than one year and not later than five years; iii) later than five years. b) unearned finance income. c) the unguaranteed residual values accruing to the benefit of the lessor. d) the accumulated allowance for uncollectible minimum lease payments receivable. e) contingent rents recognised as income in the period. f) a general description of material leasing arrangements Nelson Consulting Limited Lessors Financial Statements Recognition (Initial and Subsequent) Lessors shall present assets subject to operating leases in their statements of financial position according to the nature of the asset. income from operating leases shall be recognised in income on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished Operating Nelson Consulting Limited
56 4. Lessors Financial Statements Recognition (Initial and Subsequent) Initial direct costs incurred by lessors shall be added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease income Depreciation policy for depreciable leased assets shall be consistent with the lessor s normal depreciation policy depreciation shall be calculated in accordance with IAS 16 and 38 Operating Nelson Consulting Limited Lessors Financial Statements Disclosures Operating Lessors shall, in addition to meeting the requirements of IAS 32, disclose the following for operating leases: a) the future minimum lease payments under noncancellable operating leases in the aggregate and for each of the following periods: i) not later than one year; ii) later than one year and not later than five years; iii) later than five years. b) total contingent rents recognised as income in the period. c) a general description of the lessor s leasing arrangements Nelson Consulting Limited
57 4. Lessors Financial Statements Case Sands China Limited (Annual Report 2009) Nelson Consulting Limited 113 Today s Agenda 1. Objective and Scope 2. Classification of s Classification of Land and Buildings 3. Lessees Financial Statements 4. Lessors Financial Statements 5. Sale and back Transactions Nelson Consulting Limited
IFRS for Hospitality and Gaming Industry (Part 1) 25 May 2010
IFRS for Hospitality and Gaming Industry (Part 1) 25 May 2010 Nelson Lam 林智遠 MBA MSc BBA ACA ACIS CFA CPA(Aust.) CPA(US) FCCA FCPA FHKIoD MSCA 2006-10 Nelson Consulting Limited 1 Workshop Agenda Property,
More informationSRI LANKA ACCOUNTING STANDARD
(REVISED 2005) SRI LANKA ACCOUNTING STANDARD PROPERTY, PLANT & EQUIPMENT THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA (REVISED 2005) SRI LANKA ACCOUNTING STANDARD PROPERTY, PLANT & EQUIPMENT The
More informationHKAS 16 and 17 5 March 2007
HKAS 16 and 17 5 March 2007 Nelson Lam 林智遠 MBA MSc BBA ACA CFA CPA(Aust) CPA(US) FCCA FCPA(Practising) 2005-07 Nelson 1 Today s Agenda Property, Plant and Equipment (HKAS 16) Simple but Comprehensive Contentious
More informationInternational Accounting Standard 17 Leases. Objective. Scope. Definitions IAS 17
International Accounting Standard 17 Leases Objective 1 The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation
More information6 The following terms are used in this Standard with the meanings specified: A bearer plant is a living plant that:
International Accounting Standard 16 Property, Plant and Equipment Objective 1 The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of
More informationProperty, Plant and Equipment
International Accounting Standard 16 Property, Plant and Equipment In April 2001 the International Accounting Standards Board (IASB) adopted IAS 16 Property, Plant and Equipment, which had originally been
More informationProperty, Plant and Equipment
International Accounting Standard 16 Property, Plant and Equipment This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 16 Property, Plant and Equipment was issued by
More informationIAS 16 Property, Plant and Equipment. Uphold public interest
IAS 16 Property, Plant and Equipment Uphold public interest Background IAS 16 became operational in 1983 Major amendments have been made several times including 1998, 2003, 2008, 2012, 2013, 2014 The objective
More informationLKAS 17 Sri Lanka Accounting Standard LKAS 17
Sri Lanka Accounting Standard LKAS 17 Leases CONTENTS SRI LANKA ACCOUNTING STANDARD LKAS 17 LEASES paragraphs OBJECTIVE 1 SCOPE 2 DEFINITIONS 4 CLASSIFICATION OF LEASES 7 LEASES IN THE FINANCIAL STATEMENTS
More informationProperty, Plant and Equipment
IAS 16 Property, Plant and Equipment In April 2001 the International Accounting Standards Board (the Board) adopted IAS 16 Property, Plant and Equipment, which had originally been issued by the International
More informationProperty, Plant and Equipment
International Accounting Standard 16 Property, Plant and Equipment In April 2001 the International Accounting Standards Board (IASB) adopted IAS 16 Property, Plant and Equipment, which had originally been
More informationHong Kong Accounting Standard 16 Property, Plant and Equipment
Hong Kong Accounting Standard 16 Property, Plant and Equipment 1 Contents Hong Kong Accounting Standard 16 Property, Plant and Equipment paragraphs OBJECTIVE 1 SCOPE 2-5 DEFINITIONS 6 RECOGNITION 7-14
More informationSri Lanka Accounting Standard-LKAS 17. Leases
Sri Lanka Accounting Standard-LKAS 17 Leases -516- Sri Lanka Accounting Standard-LKAS 17 Leases Sri Lanka Accounting Standard LKAS 17 Leases is set out in paragraphs 1 69. All the paragraphs have equal
More informationSSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES
SSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES (Issued October 1987; revised February 2000) The standards, which have been set in bold italic type, should be read in the context of the background
More informationNew HKFRS for NPO/NGO 16 March 2005
New HKFRS for NPO/NGO 16 March 2005 HKFRS Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2006 Nelson 1 Today s Agenda Property, plant and equipment (HKAS 16) Investment property (HKAS 40)
More informationInternational Financial Reporting Standard 16 Leases. Objective. Scope. Recognition exemptions (paragraphs B3 B8) IFRS 16
International Financial Reporting Standard 16 Leases Objective 1 This Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure
More informationIn December 2003 the Board issued a revised IAS 17 as part of its initial agenda of technical projects.
IFRS 16 Leases In April 2001 the International Accounting Standards Board (the Board) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards Committee (IASC)
More informationIn December 2003 the Board issued a revised IAS 40 as part of its initial agenda of technical projects.
IAS 40 Investment Property In April 2001 the International Accounting Standards Board (the Board) adopted IAS 40 Investment Property, which had originally been issued by the International Accounting Standards
More informationIn December 2003 the IASB issued a revised IAS 17 as part of its initial agenda of technical projects.
International Accounting Standard 17 Leases In April 2001 the International Accounting Standards Board (IASB) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards
More informationEUROPEAN UNION ACCOUNTING RULE 7 PROPERTY, PLANT & EQUIPMENT
EUROPEAN UNION ACCOUNTING RULE 7 PROPERTY, PLANT & EQUIPMENT Page 2 of 10 I N D E X 1. Objective... 3 2. Scope... 3 3. Definitions... 3 4. Recognition... 4 4.1 General recognition principle... 4 4.2 Initial
More informationHKFRS for Not-For-Profit Entity 11 January 2005
HKFRS for Not-For-Profit Entity 11 January 2005 HKFRS Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2006 Nelson 1 Today s Agenda Introduction Non-current Assets Summary of of Convergence
More informationIFRS 16 LEASES. Page 1 of 21
IFRS 16 LEASES OBJECTIVE The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions. This information gives a basis for users
More informationSLAS 19 (Revised 2000) Sri Lanka Accounting Standard SLAS 19 (Revised 2000) LEASES
Sri Lanka Accounting Standard SLAS 19 (Revised 2000) LEASES 265 Introduction This Standard (SLAS 19 (revised 2000) ) replaces Sri Lanka Accounting Standard SLAS 19, Accounting for Leases ( the original
More informationEN Official Journal of the European Union L 320/323
29.11.2008 EN Official Journal of the European Union L 320/323 INTERNATIONAL ACCOUNTING STANDARD 40 Investment property OBJECTIVE 1 The objective of this standard is to prescribe the accounting treatment
More information2 This Standard shall be applied in accounting for all leases other than:
Indian Accounting Standard (Ind AS) 17 Leases (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main
More informationSri Lanka Accounting Standard - SLFRS 16. Leases
Sri Lanka Accounting Standard - SLFRS 16 Leases CONTENTS from paragraph SRI LANKA ACCOUNTING STANDARD - SLFRS 16 LEASES INTRODUCTION OBJECTIVE 1 SCOPE 3 RECOGNITION EXEMPTIONS 5 IDENTIFYING A LEASE 9 Separating
More informationLeases (HKAS 17) 23 January 2007
s (HKAS 17) 23 January 2007 Nelson Lam 林智遠 MBA MSc BBA ACA CFA CPA(Aust) CPA(US) FCCA FCPA(Practising) 2005-07 Nelson 1 s Case Star Cruises Ltd. (2005) stated: The adoption of HKAS 17 requires the Group
More informationSri Lanka Accounting Standard LKAS 40. Investment Property
Sri Lanka Accounting Standard LKAS 40 Investment Property LKAS 40 CONTENTS SRI LANKA ACCOUNTING STANDARD LKAS 40 INVESTMENT PROPERTY paragraphs OBJECTIVE 1 SCOPE 2 DEFINITIONS 5 CLASSIFICATION OF PROPERTY
More informationIn December 2003 the IASB issued a revised IAS 40 as part of its initial agenda of technical projects.
International Accounting Standard 40 Investment Property In April 2001 the International Accounting Standards Board (IASB) adopted IAS 40 Investment Property, which had originally been issued by the International
More informationIn December 2003 the IASB issued a revised IAS 17 as part of its initial agenda of technical projects.
IFRS Standard 16 Leases In April 2001 the International Accounting Standards Board (IASB) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards Committee (IASC)
More informationIn December 2003 the Board issued a revised IAS 40 as part of its initial agenda of technical projects.
IAS Standard 40 Investment Property In April 2001 the International Accounting Standards Board (the Board) adopted IAS 40 Investment Property, which had originally been issued by the International Accounting
More informationCA. Gopal Ji Agrawal
CA. Gopal Ji Agrawal 1. Scope 2. Key concepts 3. Accounting for leases 4. Other Lease Contracts 4. Disclosure 5. Appendix (s) 6. Questions October 1980 September 1982 IAS 17 Accounting for Leases Exposure
More informationIntangible Assets IAS 38, IAS 36, IFRS 3
Intangible Assets IAS 38, IAS 36, IFRS 3 Agenda 1. Introduction 2. Recognition 3. Measurement 4. Impairment of intangible assets (IAS 36) Basic concept Cash-Generating Units 5. Disclosures 2 1 Introduction
More informationAccounting for Leases in Public Sector (IPSAS 13 Leases)
TRAINING WORKSHOP ON APPLICATION OF IPSASs Accounting for Leases in Public Sector (IPSAS 13 Leases) By Yona Killagane NSSF COMMERCIAL COMPLEX MOROGORO 7thApril 2017 Objectives and Scope Objective: Prescribes
More informationInvestment Property (IAS 40) 30 May 2013
Investment Property (IAS 40) 30 May 2013 LAM Chi Yuen Nelson 林智遠 MBA MSc BBA ACA ACS CFA CPA(US) CTA FCCA FCPA FCPA(Aust) FHKIoD FTIHK MHKSI MSCA 2005-13 Nelson Consulting Limited 1 Cases First Case For
More informationLeases (HKAS 17) June 2006
s (HKAS 17) June 2006 Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005-06 Nelson 1 s Case Star Cruises Ltd. (2005) stated: The adoption of HKAS 17 requires the Group to classify the land
More informationMateriële Vaste Activa. 27 September 2005 Pearl Couvreur
Materiële Vaste Activa 27 September 2005 Pearl Couvreur P w C Contents 1. Principle 2. Acquisition cost 3. Subsequent costs 4. Borrowing costs 5. Assets acquired in a business combination 6. Revaluation
More informationNon-current Assets. Prof.(FH) Dr. Walter Egger
Non-current Assets Prof.(FH) Dr. Walter Egger IAS 38 Intangible Assets Intangible Asset Is an identifiable non-monetary asset without physical substance Identifiability Seperable (can be seperated, divided
More informationCHAPTER TWO Concepts and principles
CHAPTER TWO Concepts and principles 2.3 GOVERNMENT AND NON-GOVERNMENT GRANTS Recognition and presentation grants and contributions 2.3.2.8 Grants and contributions, including donated assets, shall not
More informationUniversità degli studi di Pavia Facoltà di Economia a.a Lesson 8 International Accounting Lelio Bigogno, Stefano Santucci
Università degli studi di Pavia Facoltà di Economia a.a. 2013-2014 Lesson 8 International Accounting Lelio Bigogno, Stefano Santucci 1 IAS/IFRS: IAS17 Leasing 2 History of IAS17 October 1980 Exposure Draft
More informationNew Zealand Equivalent to International Accounting Standard 40 Investment Property (NZ IAS 40)
New Zealand Equivalent to International Accounting Standard 40 Investment Property (NZ IAS 40) Issued November 2004 and incorporates amendments up to and inlcuding 28 February 2014 This Standard was issued
More informationHKAS 16, HKFRS 6 & Interpretation 12 October 2006
HKAS 16, HKFRS 6 & Interpretation 12 October 2006 Nelson Lam 林智遠 CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005-06 Nelson 1 Today s Agenda Property, Plant and Equipment (HKAS 16) Hong Kong Interpretation
More informationInternational Financial Reporting Standards (IFRS)
FACT SHEET February 2011 IAS 17 Leases (This fact sheet is based on the standard as at 1 January 2011.) Important note: This fact sheet is based on the requirements of the International Financial Reporting
More informationProperty, Plant & Equipment Intangible Assets
Property, Plant & Equipment Intangible Assets October 17, 2015 Contents: 1. Property, Plant and Equipment (Ind AS 16) - Borrowing Costs (Ind AS 23) - Stripping Costs of a Surface Mine (Appendix B to Ind
More information7 Days Intensive Workshop on IFRS ICAI Tower, BKC, Mumbai. IAS 16 Property, Plant & Equipments
7 Days Intensive Workshop on IFRS ICAI Tower, BKC, Mumbai 01-July-14, Tuesday From To Details Faculty 10:00 AM 1:15 PM IAS 16 : Property, Plant & Equipments IAS 38 : Intangible Assets Ind AS 40:Investment
More informationThis version includes amendments resulting from IFRSs issued up to 31 December 2009.
International Accounting Standard 40 Investment Property This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 40 Investment Property was issued by the International
More informationExposure Draft. Indian Accounting Standard (Ind AS) 116 Leases. (Last date for Comments: August 31, 2017)
ED/Ind AS/2017/06 Exposure Draft Indian Accounting Standard (Ind AS) 116 Leases (Last date for Comments: August 31, 2017) Issued by Accounting Standards Board The Institute of Chartered Accountants of
More informationSri Lanka Accounting Standard-LKAS 40. Investment Property
Sri Lanka Accounting Standard-LKAS 40 Investment Property CONTENTS SRI LANKA ACCOUNTING STANDARD-LKAS 40 INVESTMENT PROPERTY paragraphs OBJECTIVE 1 SCOPE 2-4 DEFINITIONS 5-15 RECOGNITION 16-19 MEASUREMENT
More informationUniversity of Economics, Prague. Non-current tangible and intangible assets (IAS 16 & IAS 38)
University of Economics, Prague Faculty of Finance and Accounting Department of Financial Accounting and Auditing Non-current tangible and intangible assets (IAS 16 & IAS 38) 1FU486 IFRS David Procházka
More informationLeases. Indian Accounting Standard (Ind AS) 17. Leases
Leases Indian Accounting Standard (Ind AS) 17 Leases Contents Paragraphs OBJECTIVE 1 SCOPE 2-3 DEFINITIONS 4-6 CLASSIFICATION OF LEASES 7-19 LEASES IN THE FINANCIAL STATEMENTS OF LESSEES 20-35 Finance
More informationHKAS 17 and January 2008
HKAS 17 and 40 21 January 2008 Nelson Lam 林智遠 MBA MSc BBA ACA ACS CFA CPA(Aust) CPA(US) FCCA FCPA(Practising) MSCA 2005-08 Nelson 1 Today s Agenda s (HKAS 17) Simple but Comprehensive Contentious and key
More informationNew Zealand Equivalent to International Accounting Standard 17 Leases (NZ IAS 17)
New Zealand Equivalent to International Accounting Standard 17 Leases (NZ IAS 17) Issued November 2004 and incorporates amendments up to and including 30 June 2011 This Standard was issued by the Financial
More informationAn intangible asset is an identifiable non-monetary asset without physical substance.
Technical Summary This extract has been prepared by IASC Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards.
More informationHKAS 17 Leases 1 October 2005
HKAS 17 Leases 1 October 2005 1. Objective of HKAS 17 The objective of Hong Kong Accounting Standard (HKAS) 17 Leases is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure
More informationNew Zealand Equivalent to International Accounting Standard 16 Property, Plant and Equipment (NZ IAS 16)
New Zealand Equivalent to International Accounting Standard 16 Property, Plant and Equipment () Issued November 2004 and incorporates amendments to 31 December 2016 other than consequential amendments
More informationLeases. (a) the lease transfers ownership of the asset to the lessee by the end of the lease term.
Leases 1.1. Classification of leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease
More informationIASB Staff Paper March 2011
IASB Staff Paper March 2011 Effect of board redeliberations on Exposure Draft Leases About this staff paper This staff paper indicates how the proposals in the Exposure Draft Leases would change as a result
More informationInternational Financial Reporting Standards (IFRS)
FACT SHEET September 2011 IAS 38 Intangible Assets (This fact sheet is based on the standard as at 1 January 2011.) Important note: This fact sheet is based on the requirements of the International Financial
More informationEXPOSURE DRAFT. Hong Kong Accounting Standard 40. Investment Property
EXPOSURE DRAFT Hong Kong Accounting Standard 40 Investment Property 1 Contents Hong Kong Accounting Standard 40 Investment Property paragraphs OBJECTIVE 1 SCOPE 2-4 DEFINITIONS 5-15 RECOGNITION 16-19 MEASUREMENT
More informationSummary of IFRS Exposure Draft Leases
The International Accounting Standards Board (IASB) recently issued a revised exposure draft (ED) relating to leases. Once these proposals are finalized the new guidance will replace the IAS 17 Leases.
More informationExposure Draft 64 January 2018 Comments due: June 30, Proposed International Public Sector Accounting Standard. Leases
Exposure Draft 64 January 2018 Comments due: June 30, 2018 Proposed International Public Sector Accounting Standard Leases This document was developed and approved by the International Public Sector Accounting
More informationNew Zealand Equivalent to International Financial Reporting Standard 16 Leases (NZ IFRS 16)
New Zealand Equivalent to International Financial Reporting Standard 16 Leases (NZ IFRS 16) Issued February 2016 This Standard was issued on 11 February 2016 by the New Zealand Accounting Standards Board
More informationWEEK 6 ACCOUNTING FOR LEASES IAS 17
WEEK 6 ACCOUNTING FOR LEASES IAS 17 Learning Objectives Discuss the Classification of Leases Understand Sale and Leaseback Transactions Explain the accounting procedure in IAS 17 Highlight the disclosure
More informationPUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 13 LEASES (PBE IPSAS 13)
PUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 13 LEASES (PBE IPSAS 13) This Standard was issued on 11 September 2014 by the New Zealand Accounting Standards Board of the External
More informationPUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 17 PROPERTY, PLANT AND EQUIPMENT (PBE IPSAS 17)
PUBLIC BENEFIT ENTITY INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARD 17 PROPERTY, PLANT AND EQUIPMENT (PBE IPSAS 17) Issued September 2014 and incorporates amendments to 31 December 2015 This Standard
More informationLatest Development of IFRS (and HKFRS) 10 January 2011
Latest Development of IFRS (and HKFRS) 10 January 2011 Nelson Lam 林智遠 MBA MSc BBA ACA ACIS CFA CPA(Aust.) CPA(US) CTA FCCA FCPA FTIHK MSCA 2008-11 Nelson Consulting Limited 1 Effective for 2010 Dec. Year-End
More informationIntangible Assets (HKAS 38) 20 December Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005 Nelson 1
Intangible Assets (HKAS 38) 20 December 2005 Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005 Nelson 1 Today s Agenda Simple but Comprehensive 1. Objective and Scope Contentious 2. Definition
More information.01 The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.
COMPARISON OF GRAP 16 WITH IAS 40 GRAP 16 IAS 40 DIFFERENCES Objective.01 The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.
More informationInternational Financial Reporting Standards (IFRSs ) 2004
International Financial Reporting Standards (IFRSs ) 2004 including International Accounting Standards (IASs ) and Interpretations as at 31 March 2004 The IASB, the IASCF, the authors and the publishers
More informationHKAS 40 Revised January 2017April Hong Kong Accounting Standard 40. Investment Property
HKAS 40 Revised January 2017April 2017 Hong Kong Accounting Standard 40 Investment Property HKAS 40 COPYRIGHT Copyright 2017 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial
More informationIntangible Assets & Service Concession 19 March MBA MSc BBA ACA ACS CFA CPA(Aust.) CPA(US) FCCA FCPA(Practising) MSCA Nelson 1
Intangible Assets & Service Concession 19 March 2008 Nelson Lam 林智遠 MBA MSc BBA ACA ACS CFA CPA(Aust.) CPA(US) FCCA FCPA(Practising) MSCA 2005-08 Nelson 1 Today s Agenda Intangible Assets (HKAS 38) Service
More informationHKFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure
HKFRS 16 Leases Introduction HKFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective of HKFRS 16 is to ensure that lessees and lessors
More informationFinancial Accounting Standards Committee
Statement of Financial Accounting Standards No. 37 20 July 2006 Translated by Chi-Chun Liu, Professor (National Taiwan University) Financial Accounting Standards Committee -605- -606- Statement of Financial
More informationExposure Draft. Accounting Standard (AS) 40 Investment Property. Last date for the comments: November 10, 2018
Exposure Draft Accounting Standard (AS) 40 Investment Property Last date for the comments: November 10, 2018 Issued by Accounting Standards Board The Institute of Chartered Accountants of India 1 Exposure
More informationHKAS 17 & 40 and Interpretations 10 August 2006
HKAS 17 & 40 and Interpretations 10 August 2006 Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005-06 Nelson 1 Tonight s Agenda Leases (HKAS 17) 17) Simple but Comprehensive Contentious
More informationHKAS 17 Revised February 2014January Hong Kong Accounting Standard 17. Leases
HKAS 17 Revised February 2014January 2017 Hong Kong Accounting Standard 17 Leases HKAS 17 COPYRIGHT Copyright 2017 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting
More informationHKAS 17 Revised January 2017September Hong Kong Accounting Standard 17. Leases
HKAS 17 Revised January 2017September 2018 Hong Kong Accounting Standard 17 Leases HKAS 17 COPYRIGHT Copyright 2018 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting
More informationACCOUNTING STANDARDS BOARD STANDARDS OF GENERALLY RECOGNISED ACCOUNTING PRACTICE PROPERTY PLANT AND EQUIPMENT (GRAP 17)
ACCOUNTING STANDARDS BOARD STANDARDS OF GENERALLY RECOGNISED ACCOUNTING PRACTICE PROPERTY PLANT AND EQUIPMENT (GRAP 17) Issued by the Accounting Standards Board March 2012 Acknowledgement GRAP 17 This
More informationInvestment Property (HKAS 40) June 2006
Investment Property (HKAS 40) June 2006 Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005-06 Nelson 1 Before HKAS 40 Case Accounting policy (2004/05) on buildings: The cost of construction
More informationNew Zealand Equivalent to International Accounting Standard 40 Investment Property (NZ IAS 40)
New Zealand Equivalent to International Accounting Standard 40 Investment Property (NZ IAS 40) Issued November 2004 and incorporates amendments to 28 February 2017 other than consequential amendments resulting
More informationInternational Accounting Standard 38 Intangible Assets. Objective. Scope
International Accounting Standard 38 Intangible Assets Objective 1 The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in
More informationInternational Financial Reporting Standards (IFRS)
FACT SHEET February 2011 IAS 40 Investment Property (This fact sheet is based on the standard as at 1 January 2011.) Important note: This fact sheet is based on the requirements of the International Financial
More informationThis version includes amendments resulting from IFRSs issued up to 31 December 2008.
International Accounting Standard 17 Leases This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 17 Leases was issued by the International Accounting Standards Committee
More informationIssues in Applying Hong Kong Interpretations 5 September Hong Kong Interpretations Nelson 1
Issues in Applying Hong Kong Interpretations 5 September 2005 Hong Kong Interpretations Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005 Nelson 1 Topics to be discussed Hong Kong Interpretations
More informationExposure Draft. Accounting Standard (AS) 17 Leases. Last date for the comments: May 4, 2019
ED/AS41/2019/09 Exposure Draft Accounting Standard (AS) 17 Leases Last date for the comments: May 4, 2019 Issued by Accounting Standards Board The Institute of Chartered Accountants of India 1 Exposure
More informationEN Official Journal of the European Union L 320/373
29.11.2008 EN Official Journal of the European Union L 320/373 INTERNATIONAL FINANCIAL REPORTING STANDARD 3 Business combinations OBJECTIVE 1 The objective of this IFRS is to specify the financial reporting
More informationTOPIC 2 - IAS 40 INVESTMENT PROPERTY
TOPIC 2 - IAS 40 INVESTMENT PROPERTY Definitions: Investment Property: Property held to earn rentals or for capital appreciation or both. An entity may own land or a building as an investment rather than
More informationThere are two main reasons why leases may need to be reclassified under the Code.
4.2 Leases and Lease Type Arrangements A - Reclassification of Leases The requirements of the Code in respect of lease classification are different to those of the SORP. Authorities will therefore need
More informationIPSAS 17 PROPERTY, PLANT, AND EQUIPMENT
IPSAS 17 PROPERTY, PLANT, AND EQUIPMENT Acknowledgment This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard (IAS) 16 (Revised 2003), Property,
More informationNew Zealand Equivalent to International Accounting Standard 17 Leases (NZ IAS 17)
New Zealand Equivalent to International Accounting Standard 17 Leases (NZ IAS 17) Issued November 2004 and incorporates amendments to 31 December 2016 This Standard was issued by the New Zealand Accounting
More informationIFRS and HKFRS Update and Challenge 1 June 2011
IFRS and HKFRS Update and Challenge 1 June 2011 Lam Chi Yuen, Nelson 林智遠 MBA MSc BBA ACA ACS CFA CPA(Aust) CPA(US) CTA FCCA FCPA FHKIoD FTIHK MHKSI MSCA 2008-11 Nelson Consulting Limited 1 Effective for
More informationInvestment Property (HKAS 40) 19 March 2007
Investment Property (HKAS 40) 19 March 2007 Nelson Lam 林智遠 MBA MSc BBA ACA CFA CPA(Aust) CPA(US) FCCA FCPA(Practising) 2005-07 Nelson 1 Before HKAS 40 Accounting policy (2004/05) on buildings: The cost
More informationAccounting Standards for Enterprises No Leases No. 3 [2006] of the Ministry of Finance
Accounting Standards for Enterprises No. 21 - Leases No. 3 [2006] of the Ministry of Finance Chapter I General Provisions Article 1With a view to regulating the recognition and measurement of leases, as
More informationNew Zealand Equivalent to International Accounting Standard 40 Investment Property (NZ IAS 40)
New Zealand Equivalent to International Accounting Standard 40 Investment Property (NZ IAS 40) Issued November 2004 and incorporates amendments up to and including 31 October 2010 This Standard was issued
More informationNew Zealand Equivalent to International Accounting Standard 16 Property, Plant and Equipment (NZ IAS 16)
New Zealand Equivalent to International Accounting Standard 16 Property, Plant and Equipment (NZ IAS 16) Issued November 2004 and incorporates amendments up to and including 30 June 2011 other than consequential
More informationIndian Accounting Standard (Ind AS) 38
Indian Accounting Standard (Ind AS) 38 Intangible Assets (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate
More informationCONSULTATION DRAFT SMALL AND MEDIUM-SIZED ENTITY FINANCIAL REPORTING STANDARD (SME-FRS) CONTENTS
CONSULTATION DRAFT SMALL AND MEDIUM-SIZED ENTITY FINANCIAL REPORTING STANDARD (SME-FRS) CONTENTS Section Definitions 1 Presentation of Financial Statements 2 Accounting Policies 3 Property, Plant and Equipment
More informationIFRS 16 : Lease accounting
IFRS 16 : Lease accounting Effective for accounting periods beginning on or after 1 January 2019 December 2017 IFRS 16: Lease accounting The IASB published the new IFRS 16 lease standard, in order to avoid
More informationInvestment Property AASB 140. Compiled AASB Standard RDR Early Application Only
Compiled AASB Standard RDR Early Application Only AASB 140 Investment Property This compiled Standard applies to annual reporting periods beginning on or after 1 July 2009 with early application of the
More information[TO BE PUBLLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
[TO BE PUBLLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 30 th March, 2019 G.S.R. (E).
More information