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Hello Sir ,
for Sep 2016 Q31“Non-current assets:
The directors decided to revalue the leased property at $66·3m on 1 October 20X5.Triage Co does not make an
annual transfer from the revaluation surplus to retained earnings to reflect the realisation of the revaluation gain”Why the leased property can be revalued?
For Dec 2013
Q5
“The alterations to the leased property do not affect the lease itself and this should continue to be treated as an operating lease
and charging profit or loss with the annual rental of $2·3 million”Is it the old standard for IAS 17 and not the IFRS 16 ?as no asset and liabilities is recognised for the operating lease.
Thank you.
For Dec 2013 question above
“The initial cost of the alterations should be capitalised and depreciated over the remaining life of the lease”Its also need to be added to the right of use of the assets and lease liability as initial costs?
what is the correct treatment under IFRS 16 for this question?Thanks
@toushiga said:
Hello Sir ,
for Sep 2016 Q31“Non-current assets:
The directors decided to revalue the leased property at $66·3m on 1 October 20X5.Triage Co does not make an
annual transfer from the revaluation surplus to retained earnings to reflect the realisation of the revaluation gain”Why the leased property can be revalued?
For Dec 2013
Q5
“The alterations to the leased property do not affect the lease itself and this should continue to be treated as an operating lease
and charging profit or loss with the annual rental of $2·3 million”Is it the old standard for IAS 17 and not the IFRS 16 ?as no asset and liabilities is recognised for the operating lease.
Thank you.
Hi,
We will record property that is held under a lease, and then treat under IAS 16. If it has increased in value then it is revalued as per IAS 16.
Yes, anything that mentions operating leases is the old IAS 17.
Thanks
@toushiga said:
For Dec 2013 question above
“The initial cost of the alterations should be capitalised and depreciated over the remaining life of the lease”Its also need to be added to the right of use of the assets and lease liability as initial costs?
what is the correct treatment under IFRS 16 for this question?Thanks
Yes, this would be part of the costs of the right of use asset. If you want the correct treatment then you need an updated revision kit as that will reflect the changes.
Thanks
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