Ias 17
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 June 2013
My query is regarding the treatment of sale and lease back in case of operating lease,
why do we compare Carrying amount with Fair value , why not selling price, if compensation is given by lessor?
why do we compare Carrying amount with Fair value , why not selling price, if compensation is given by lessor?
10 June 2013
Bcoz, IFRS are based on Fair Values. Any difference between carrying amount and fair value is taken to profit & loss. It focus on reflecting substance of transaction and shows that if transaction carried at fair values, what would have been the position in P/L.
Any further difference is not immediately recognized, rather deferred on the premise that future compensation is for free.
Only logic is Current values have effect on future arrangements between parties in substance.
Any further difference is not immediately recognized, rather deferred on the premise that future compensation is for free.
Only logic is Current values have effect on future arrangements between parties in substance.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- Consolidated financials
- Reprocessing of rectification order AY 2025-26
- Section 50-fixed asset-->building ceases to exist
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- TDS on TRUST
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
