Investor Presentaiton
CA T
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
Consolidation financial statement
Entities D, E and F are all subsidiaries of 'Duo' group.
Which property should be classified as IP in the consolidated
financial statements of Duo Group
Property
Yes/No
An office block owned by Entity F and leased under an
operating lease to Entity D who subleases it to an
associated company under LKAS 28
Yes
An oilfield owned by Entity E and leased to a third party
under an operating lease
No
A dockyard complex owned by Entity D and leased to a
third party under an operating lease. Entity D manages the
operation of the offloading and transportation infrastructure
within the complex
No
CA
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
Consolidation financial statement
Which item may be classified as IP in the consolidated financial
statements of a group?
Property
Yes/No
Land and buildings held under a finance lease and sublet
to a subsidiary company which uses it for administrative
purposes
No
An interest in a holiday complex held under an operating
lease that is sublet to and managed by a third party
Yes
Land and building held under an operating lease and
sublet to an entity within the same group which uses it as
its head office
No
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