.... How to Find Your Subject Study Group & Join ....   .... Find Your Subject Study Group & Join ....  

We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>

Study Groups By Subject code Wise (Click Below on your university link & Join Your Subject Group)

[ + VU Study Groups Subject Code Wise ]  [ + COMSATS Virtual Campus Study Groups Subject Code Wise ]

Looking For Something at vustudents.ning.com?Search Here

SWEET

This Content Originally Published by a member of VU Students.

Views: 1840

See Your Saved Posts Timeline

Attachments:

Replies to This Discussion

Please Discuss here about this assignment.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions. Read More>>

 

Note:-

For Important Helping Material related to this subject (Solved MCQs, Short Notes, Solved past Papers, E-Books, FAQ,Short Questions Answers & more). You must view all the featured Discussion in this subject group.

For how you can view all the Featured discussions click on the Back to Subject Name Discussions link below the title of this Discussion & then under featured Discussion corner click on the view all link.

Or visit this link 

Click Here For Detail.

&

.•°How to Download past papers from study groups°•.

 

Please Click on the below link to see…

.... How to Find Your Subject Study Group & Join .... 

anyone need assignemt mgt401. kindly send email  id  then i will send the assignment.

i need it brother

send

msgsend on my mail id saleemaziz79@gmail.com

saleem khan i need this assignment pl z

i need this assignment 

any ideas about assignment????

any body have idea about it

saleem khan i need this assignment 

plz guys share solution over here...thnx

Assignment MGT401

A)
As per IAS 17, a lease is classified as finance lease or operating based on following criteria;
The lease transfer ownership of the asset of the lease by the end of the lease term.
The lease has the option to purchase the asset at a price which is expected to be sufficiently lower than fair value at the date of the option become exercisable.
At the inception of the lease it is a reasonable certain that the option will be exercised.
The lease term is for the major part of economic life of the asset even if title is not transferred.
In case above criteria is not met the lease will be classified as operating lease,
In the question the lease term is for the major part of the economic life of the asset. This situation reflects that it’s a finance lease because as per IAS 17 if this condition exists and even if title is not transferred at the end of the contract it`s a finance lease.

Statement of financial position:
As at December 30, 2000
Dr. Asset 350,000
Cr. finance lease payable 350,00

Dr. deprecation 58,333
Cr. Accumulated depreciation 58,333
B)
Income of Statement
For the year ended on December 31,200
Dr. finance charge 40,000
Cr. Finance charge payable 40,000
Statement of Cash flow
For the ended on December 31,2000
Amount in PKR

Net profit 185,000
Add: Deprecation 58,333
Adjust profit: 243,333

Operation activities:
Less: finance charge 40,000
Net cash consumed in operating activities 40,000
Financing Activities:
Less: Operating lease paid 52.500
Net cash consumed in financing Activities:
Net cash consumed (92,500)
& Cash equivalent 150,833


C)
The need of standardization of lease agreements was felt by the standard setter`s reason being the need to account for the lease liability appropriately in the financial statement. By accounting lease one can be in better position to decide the expected cash flows, expenses and financial position of an entity.

D) Lessee can have the following advantage in the given scenario.
1. Lease is not legally bound to pay term basis.
2. Lease can switch to cheaper options if they are available.
3. If leased asset is no more required there would be no penalties after completing a year in turn its Bit flexible option for leasee.

RSS

Job's & Careers (Latest Jobs)

Admissions (Latest Admissons)

Scholarship (Latest Scholarships)

Internship (Latest Internships)

VU Study

Other Universities/Colleges/Schools Help

+ More Categorizes

© 2017   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service