| February 9th, 2018 03:29 PM | |
| Vishal Kotkar | Re: accounting for leases ias 17 The IFRS Foundation is a not-for-profit, public interest organisation established to develop a single set of high-quality, understandable, enforceable and globally accepted accounting standards—IFRS Standards—and to promote and facilitate adoption of the standards. The Accounting for Lease IAS 17 Are given below IAS 17 Leases prescribes the accounting policies and disclosures applicable to leases, both for lessees and lessors. Leases are required to be classified as either finance leases (which transfer substantially all the risks and rewards of ownership, and give rise to asset and liability recognition by the lessee and a receivable by the lessor) and operating leases (which result in expense recognition by the lessee Classification AS 17 classifies leases into two types: a finance lease if the lease transfers substantially all the risks and rewards incidental to ownership; and an operating lease if the lease does not transfer substantially all the risks and rewards incidental to ownership. Objective of IAS 17 The objective of IAS 17 (1997) is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosures to apply in relation to finance and operating leases. Accounting by lessees The following principles should be applied in the financial statements of lessees: at commencement of the lease term, finance leases should be recorded as an asset and a liability at the lower of the fair value of the asset and the present value of the minimum lease payments (discounted at the interest rate implicit in the lease , if practicable, or else at the entity's incremental borrowing rate) [IAS 17.20] finance lease payments should be apportioned between the finance charge and the reduction of the outstanding liability (the finance charge to be allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability) [IAS 17.25] the depreciation policy for assets held under finance leases should be consistent with that for owned assets. If there is no reasonable certainty that the lessee will obtain ownership at the end of the lease – the asset should be depreciated over the shorter of the lease term or the life of the asset [IAS 17.27] for operating leases, the lease payments should be recognised as an expense in the income statement over the lease term on a straight-line basis, unless another systematic basis is more representative of the time pattern of the user's benefit [IAS17.33] For more Information you may Consider the below Attachement that is Free to Download |
| February 9th, 2018 03:27 PM | |
| Unregistered | Re: accounting for leases ias 17 Hii sir, I Wants to get the Information About the Accounting for Lease IAS 17 of the IFRS Foundation ? |
| December 1st, 2015 02:54 PM | |
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