KPMG organises workshop on tax, accounting for leases
KPMG has organised a workshop to demystify the aspects pertaining to tax and accounting stemming from the new Inland Revenue Act and SLFRS 16 regarding leases, on January 18, 2019, at Movenpick Hotel, from 9:00 a.m. to 12:00 noon.
The presentations will be made by KPMG Partner Accounting Advisory Mohamed Shameel, Principal Tax Suresh R.I. Perera and Director Tax Hasna Hasan.
The tax and accounting rules applicable to leases have witnessed a transformation due to the introduction of the new accounting standard as well as the new Inland Revenue Act.
SLFRS 16 heavily impacts many industries in addition to a general impact on all parties entering into leases.
Many real estate leases contain several lease and non-lease components. Lessees need to be aware to identify and account for them. It involves some critical judgement that may be needed when determining which lease component each non-lease component is associated with, as well as in scenarios in which a nonlease component needs to be allocated between multiple lease components.
A company adopting SLFRS 16 using either a retrospective approach or a modified retrospective approach with the election to recreate the right-of-use asset from the commencement date will now need to address historical lease modifications as a part of its transition project.
Transitional rules pertaining to leases have permitted finance leases executed under the old Inland Revenue Act to be governed under the rules therein. Tax implications of leases executed after 1.4.2018 would depend on the classification of such leases under the new Inland Revenue Act. The creation of new leases also attracts an impact from the new capital gains tax rules.
Please contact via 0115426214 or lk-academy@kpmg.com for registrations.