tailieunhanh - advanced financial accounting 7th edition_8

Tham khảo tài liệu 'advanced financial accounting 7th edition_8', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter 9 Substance over form and leases 245 c Explain briefly any circumstances in which a lessor and a lessee might classify a partic- ular lease differently . the lessee might classify a lease as an operating lease whilst the lessor classifies the same lease as a finance lease or vice versa. 3 marks d Explain briefly any circumstances in which the requirements of SSAP 21 with regard to accounting for operating leases by lessees might result in charges to the profit and loss account different from the amounts payable for the period under the terms of a lease. 3 marks e Draft a concise accounting policy in respect of Leasing as a lessee only suitable for inclusion in the published accounts of Pilgrim plc and comment on the key aspects of your policy to aid your managing director s understanding. 4 marks f List the other disclosures Pilgrim plc is required to give in its published accounts in respect of its financial transactions as a lessee. 3 marks Note Ignore taxation. ICAEW Financial Accounting 2 December 1992 21 marks Flow Ltd prepares financial statements to 31 March each year. On 1 April 1998 Flow Ltd sold a freehold property to another company River plc. Flow Ltd had purchased the property for 500 000 on 1 April 1988 and had charged total depreciation of 60 000 on the property for the period 1 April 1988 to 31 March 1998. River plc paid 850 000 for the property on 1 April 1998 at which date its true market value was 550 000. From 1 April 1998 the property was leased back by Flow Ltd on a ten-year operating lease for annual rentals payable in arrears of 100 000. A normal annual rental for such a property would have been 50 000. River plc is a financial institution which on 1 April 1998 charged interest of per annum on ten-year fixed rate loans. Requirements a Explain what is meant by the terms finance lease and operating lease and how operating leases should be accounted for in the financial statements of lessee companies. 7 marks b Show the .