Investor Presentaiton

CA T THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA LKAS 1- Presentation of Financial Statements 27th June 2012 IFRIC 17 - DISTRIBUTIONS OF NON-CASH ASSETS TO OWNERS •Applies to the entity making the distribution, not to the recipient. It applies when non-cash assets are distributed to owners or when the owner is given a choice of taking cash in lieu of the non-cash assets ⚫IFRIC 17 applies to pro rata distributions of non-cash assets (all owners are treated equally) but does not apply to common control transactions. • . . Recognise a dividend payable when the dividend is appropriately authorised and is no longer at the discretion of the entity Measure the dividend payable at the fair value of the net assets to be distributed Remeasure the liability at each reporting date and at settlement, with changes recognised directly in equity Recognise the difference between the dividend paid and the carrying amount of the net assets distributed in profit or loss, and should disclose it separately • Provide additional disclosures if the net assets being held for distribution to owners meet the definition of a discontinued operation CA THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA LKAS 1-Presentation of Financial Statements 27th June 2012 Scope of the Presentation 37 SIC 27-EVALUATING THE SUBSTANCE OF TRANSACTIONS IN THE LEGAL FORM OF A LEASE • Addresses issues that may arise when an arrangement between an enterprise and an investor involves the legal form of a lease. . Accounting for arrangements between an enterprise and an investor should reflect the substance of the arrangement . • All aspects of the arrangement should be evaluated to determine its substance If an arrangement does not meet the definition of a lease, SIC 27 addresses whether a separate investment account and lease payment obligation that might exist represent assets and liabilities of the enterprise; how the enterprise should account for other obligations resulting from the arrangement; and how the enterprise should account for a fee it might receive from an Investor • A series of transactions that involve the legal form of a lease is linked, and therefore should be accounted for as one transaction, when the overall economic effect cannot be understood without reference to the series of transactions as a whole Scope of the Presentation 38 19

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