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+--- Thread: Small company(5th schedule) and treatment of lease (/thread-small-company-5th-schedule-and-treatment-of-lease)
Small company(5th schedule) and treatment of lease - Queries - 07-01-2009
Small company is defined in 5th scheduel as a company having
less than Rs.25 million equity
less than 250 million turnover
less than 250 employess any time in a year
all of above conditions must be met to be treated as small company
My questions are
1.what is the treatment of leases in case of small company.will we treat all the leases as operating lease.
2.if a company is medium sized(as per 5th schedule) in the last year and then become small size in next year what will we do to the lease disclosure.because as per my understanding(please refer to icap standards for small and medium size companies) in case of medium size lease is classified between finance and operating lease but in case of small size all leases are classified as operating.
3.how will we restate last year disclosure.will we restate last year lease from finance to operating or something else.
Any body providing guidance will be highly appreciated.
- alhadisam - 07-01-2009
http//www.iasb.org/NR/rdonlyres/FF3A33DB-E40D-4125-9ABD-9AF51EB92627/0/DPLeasesPreliminaryViews.pdf
- Queries - 07-01-2009
i didnt find my answers anywhere there. can anybody explain here.
- faisal_desperado - 07-01-2009
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Queries</i>
<br />
Small company is defined in 5th scheduel as a company having
less than Rs.25 million equity
less than 250 million turnover
less than 250 employess any time in a year
all of above conditions must be met to be treated as small company
My questions are
1.what is the treatment of leases in case of small company.will we treat all the leases as operating lease.
2.if a company is medium sized(as per 5th schedule) in the last year and then become small size in next year what will we do to the lease disclosure.because as per my understanding(please refer to icap standards for small and medium size companies) in case of medium size lease is classified between finance and operating lease but in case of small size all leases are classified as operating.
3.how will we restate last year disclosure.will we restate last year lease from finance to operating or something else.
Any body providing guidance will be highly appreciated.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Please explain, from where did you acquire the following information ,Who has predominated IASs , Could you also send a link ?
"in case of medium size lease is classified between finance and operating lease <b>but in case of small size all leases are classified as operating.</b>
Best Regards,
- Queries - 07-02-2009
Dear IFRS are primiraly for listed and multinational huge companies. In pak most of the companies are either small or medium.For these ICAP has issued standards for small and medium sized entities. These standards are available at icap website.
and i quoted the definition of small company from fifth schedule of the companies ordinance 1984 which dominates over ias in pakistan.
Anyhow if some one else is uptodate with these, then plz reply.
- faisal_desperado - 07-04-2009
Yes my dear,
I probably may not be up to date with it , so may you help me in this regard?
However , my question is still the same as, what is the weblink to the above ?( please mention the link inspite of suggesting/ensuring the availablity at ICAP's website)
Also mention the page number,
Best Regards and sorry for those anticipated inconveniences, which you may face.
- Queries - 07-08-2009
ok i provide you the link.
http//www.icap.org.pk/downloads/catalog/125241-sme%20standard%20(print%20version).pdf
go to page # 120 clause 41.
My question is still pending though. can anybody tell me the answer.
- Queries - 07-10-2009
my questions are still pending.
have no body studied the standards for SME and MSE by icap and adopted by SECP.
and plz those who havent dont try to impress others by posting without any purpose.