IAS 17 and IFRS 6: Difference between pages

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imported>Doug Williamson
(Checked against IASB & Deloitte 20/4/13 - no change)
 
imported>Doug Williamson
m (Checked against IASB & Deloitte 20/4/13 - no change)
 
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1.
International Financial Reporting Standard 6, dealing with exploration for and evaluation of mineral resources.  
International Accounting Standard 17, dealing with leases.
Issued by the International Accounting Standards Board.
 
IAS 17 requires finance lease liabilities to be accounted for 'on balance sheet'.
It also requires the appropriate allocation of the total lease instalments between finance charges and reduction of the outstanding lease liability.
 
2.
Under IAS 17 the total finance charge should be spread in such a way as to produce a constant periodic rate of interest on the remaining balance of the liability.
However, IAS 17 also allows for some form of approximation to be used to simplify the calculation.
 
Fully accurate calculation bases for spreading the total finance charge include the Actuarial method.
The Sum of the digits method is simpler to apply, and will normally produce a close approximation.  


== See also ==
== See also ==
* [[Actuarial method]]
* [[International Accounting Standards Board]]
* [[ED 2010/9]]
* [[Finance charge]]
* [[Finance lease]]
* [[International Financial Reporting Standards]]
* [[Off-balance sheet finance]]
* [[Operating lease]]
* [[SSAP 21]]
* [[Sum of the digits]]

Revision as of 09:53, 20 April 2013

International Financial Reporting Standard 6, dealing with exploration for and evaluation of mineral resources. Issued by the International Accounting Standards Board.

See also

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