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Mar/June 2016

This topic has 3 replies, 2 voices, and was last updated 4 years ago by Kim Smith.

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May 11, 2020 at 11:28 am #570544
toushiga
Participant
- Topics: 424
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Hello Sir, for Q1(b) “analytical procedure”
The last two paragraph related to the provision
1.Besides for the provision recognised regards to the onerous lease contract, is it will need to consider the impairment indication of the vacant properties? Will it subject to impairment, therefore, part of audit risk?
Thank you.
May 11, 2020 at 1:28 pm #570553
Kim Smith
Keymaster
- Topics: 130
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Since IFRS 16 Leases became examinable (from September 2017) there are no longer onerous lease provisions. If you have a current edition ACCA-Approved revision kit (as recommended by ACCA) both Q & A should be updated. If not, you must take care with past Qs and As and be aware of when standards changed.
May 12, 2020 at 9:52 am #570608
toushiga
Participant
- Topics: 424
- Replies: 172
onerous provision not related to IAS 37 rather than IFRS 16?
May 12, 2020 at 3:26 pm #570637
Kim Smith
Keymaster
- Topics: 130
- Replies: 8169
Yes – but it can’t relate to a lease since all liabilities relating to leases > 12 months must now be recognised. So you can’t make additional provision “on top” of the lease liability.
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