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In this newsletter, we look at the following topic:
HK(IFRIC) Interpretation 4: Determining whether an arrangement contains a lease - frequently asked questions
Many arrangements that are not leases in legal form convey the right to use an asset for an agreed period of time. HK(IFRIC)-Int 4 provides guidance for determining whether these arrangements contain a lease. The interpretation specifies that an arrangement contains a lease if it depends on the use of a specific asset and conveys a right to control the use of that asset. Current experiences indicate that companies do not realise the broad impact of HK(IFRIC)-Int 4, and the transition guidance is not straight forward. This newsletter looks at some of the common issues arising from practical application of the interpretation.
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Read more by downloading our HKFRS News - Dec 2006 (pdf file, 1.4MB) for your reference.
Note: HKFRS has converged with IFRS effective from 1 January 2005. Contents contained in this newsletter are relevant to both HKFRS preparers and IFRS preparers. Other Issues of HKFRS News
Accounting and Listing Rules Updates. | 