06-04-2006, 08:06 AM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Pracs</i>
I have been called a person who cannot hold jobs (by Ali),
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Pracs, the professional, can you show me the reference of the quoted reply? I hope you are a professional and your statements should be based on some facts. Please tell me its reference??
And as far as the ACCA vs CA is concerned, yes I again say ACCA and CA has no comparison atleast in Pakistan.
And as far as knowledge is concerned, why you people were silent on the issue of IAS 32/39? http//www.accountancy.com.pk/forum/topic.asp?topic_id=3570
You replied on IFRS 5 issue that substance over form doesnt allow you to classify asset to be sold and lease back under IFRS 5.
http//www.accountancy.com.pk/forum/topic.asp?topic_id=3672
So please put the arguments against the following points
1) If we are recognising the gain on asset, then there are two different transactions (sale and lease back).
2) Normally we treat this arrangement as two different transactions.
3) In case of sale and lease back transaction carrying amount is recovered through sale (one of the conditions of IFRS 5), because the entity requires funds which is recovered through sale proceeds (IFRS para6) and the liability against asset arises on the other side!
4) In case of sale and lease back transaction, normally entity is in the need of immediate funds so there is usually proper advertisement of asset(one of the conditions of IFRS 5), and if the entity could not find a leasing company to purchase the asset they may sell it in normal way and bring on an other asset on lease.
5)Had this arrangement not been covered by IFRS 5, this would have been specifically excluded from the scope of IFRS 5.
6)Furthermore, paragrph 2 states that measurement requirements of this IFRS apply to all recognized non-current assets and disposal groups , except for those assets listed in para 5 which shall continue to be measured in accordance with the standards noted. Standards noted and excluded from the scope are
IAS 12, IAS 19, IAS 39, IAS 40, IAS 41, IFRS 4.
IAS 17 is not excluded from the scope!
Waiting for your professional reply. This time please come up with some logical arguments
ICAPians, the unparalleled..
I have been called a person who cannot hold jobs (by Ali),
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Pracs, the professional, can you show me the reference of the quoted reply? I hope you are a professional and your statements should be based on some facts. Please tell me its reference??
And as far as the ACCA vs CA is concerned, yes I again say ACCA and CA has no comparison atleast in Pakistan.
And as far as knowledge is concerned, why you people were silent on the issue of IAS 32/39? http//www.accountancy.com.pk/forum/topic.asp?topic_id=3570
You replied on IFRS 5 issue that substance over form doesnt allow you to classify asset to be sold and lease back under IFRS 5.
http//www.accountancy.com.pk/forum/topic.asp?topic_id=3672
So please put the arguments against the following points
1) If we are recognising the gain on asset, then there are two different transactions (sale and lease back).
2) Normally we treat this arrangement as two different transactions.
3) In case of sale and lease back transaction carrying amount is recovered through sale (one of the conditions of IFRS 5), because the entity requires funds which is recovered through sale proceeds (IFRS para6) and the liability against asset arises on the other side!
4) In case of sale and lease back transaction, normally entity is in the need of immediate funds so there is usually proper advertisement of asset(one of the conditions of IFRS 5), and if the entity could not find a leasing company to purchase the asset they may sell it in normal way and bring on an other asset on lease.
5)Had this arrangement not been covered by IFRS 5, this would have been specifically excluded from the scope of IFRS 5.
6)Furthermore, paragrph 2 states that measurement requirements of this IFRS apply to all recognized non-current assets and disposal groups , except for those assets listed in para 5 which shall continue to be measured in accordance with the standards noted. Standards noted and excluded from the scope are
IAS 12, IAS 19, IAS 39, IAS 40, IAS 41, IFRS 4.
IAS 17 is not excluded from the scope!
Waiting for your professional reply. This time please come up with some logical arguments
ICAPians, the unparalleled..
