IFRS 5

[Ali Akbar]

IFRS 5 'Non Current Assets Held for Sale' deals with the classification and measurement of assets which are intended to be disposed of within a year; and there are certain conditions which shall be complied with before classifying any asset as held for sale.

Now, my question is to whether an asset held for sale and intended to be <b>leased back </b> shall be classified as held for sale under IFRS 5? If yes/no, why?


Anticipating responses from seniors.

ICAPians, the unparalleled..

[Antimason]

<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Ali Akbar</i>
<br />IFRS 5 'Non Current Assets Held for Sale' deals with the classification and measurement of assets which are intended to be disposed of within a year; and there are certain conditions which shall be complied with before classifying any asset as held for sale.

Now, my question is to whether an asset held for sale and intended to be <b>leased back </b> shall be classified as held for sale under IFRS 5? If yes/no, why?


Anticipating responses from seniors.

ICAPians, the unparalleled..

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Bro i am a newbie in ACCA and yet i think that it wouldn't be classified under "Non current Asset held for sale", since it is actually not sold out to the customer. it is just given away and the customer or the tenant pays his rent. It is like giving your apartment to someone for rent.

[Ali Akbar]

<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Antimason</i>

Bro i am a newbie in ACCA and yet i think that it wouldn't be classified under "Non current Asset held for sale", since it is actually not sold out to the customer. it is just given away and the customer or the tenant pays his rent. It is like giving your apartment to someone for rent.



<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear sir

I have used the word lease back, and you are talking about letting out property on lease which is being dealt by IAS 40 'Investment Property'. My question was not that.

ICAPians, the unparalleled..

[Muhammad Adnan Arshad]

GOOD QUESTION & ANSWER

[Antimason]

<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Ali Akbar</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Antimason</i>

Bro i am a newbie in ACCA and yet i think that it wouldn't be classified under "Non current Asset held for sale", since it is actually not sold out to the customer. it is just given away and the customer or the tenant pays his rent. It is like giving your apartment to someone for rent.



<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear sir

I have used the word lease back, and you are talking about letting out property on lease which is being dealt by IAS 40 'Investment Property'. My question was not that.

ICAPians, the unparalleled..
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

OK what about IAS 17 ?????

http//www.iasplus.com/standard/ias17.htm

Perhaps IAS 17 is employed till the leased asset is brought back into the possession of the owner, after which IFRS 5 applies?

[Pracs]

Per IFRS 5 such an asset should be classified under the said standard (since there is an intention to sell within a year’s time and meets other requirements). Presuming that there is no legal agreement to lease back (at the balance sheet date), I think a disclosure to that fact would suffice.

I understand you are towing the line of ‘substance over form’, what is your opinion on this ?

[Muhammad Adnan Arshad]

visit the website

http//www.iasb.org/

[Ali Akbar]

<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>
<br />Per IFRS 5 such an asset should be classified under the said standard (since there is an intention to sell within a year’s time and meets other requirements). Presuming that there is no legal agreement to lease back (at the balance sheet date), I think a disclosure to that fact would suffice.

I understand you are towing the line of ‘substance over form’, what is your opinion on this ?

<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Thanks Pracs.

As I am not at home and now on ICI plant. Once I come back to land we will have discussion on it.

@Adnan sahab, let me entertain ur posts too once I come back.

ICAPians, the unparalleled..