Abstract:
XYZ (Pvt) Ltd is Sri Lanka’s first privately owned fabric intensive free trade zone.
It is the leader in industrial multi facility connectivity empowering the apparel
and fabric manufacturing industry, the best supply chain solution in sustainable
industrial eco system. This company provides different types of shared services
to other apparel companies as well inside the park and we can categorize these
shared services according to five types such as power, water, biological chemical
effluent treatment, accommodation and supply chain.
This factory was operated earlier by Kaloon Lanka (Pvt) Ltd which was a Korean
based company. However in 2006 XYZ (Pvt) Ltd acquired this premises and
continue the operations under a 99 years lease agreement with the Board of
Investment (BOI). Once they acquired the company, there were different types
of assets which were recognized in their new SOFP. These assets are related to
the non-current assets, capital working progress and current assets. However if
a company does have any intention to sell an asset a set of criteria should be
fulfilled according to SLFRS 5-Assets held for sale [Paragraph 2] standard, there
after we have to classify that asset as Assets held for sale.
