You’re right, it’s absolutely worth adding it. Could you please share the article for more details about the exception. Thank you for great article. Dear Kakciksmine, Thank you for this wonderful article. you assess that this lease is operating. Hope u got your answer & please share your feedback accordingly. yes, but it’s not the same asset. Do we amortize the lease premium over the period of the lease agreement? Showing a finance lease payable in the financial statements seem to indicate a departure of IFRS 16. And I am 100% with you, as analysts seldom have enough time to read the notes in depth, as you might expect them to do. S. How does one deal with existing operating leases in place when one adopts IAS 16? Lease of assets of a low value (such as computers, furniture etc.). I guess your clients follows IAS 17 rather than IFRS 16 as it’s completely new. A lessor will show a PPE and a lessee will show a right to use a PPE. I will come back to it at the later stage, because I truly think that there will be lots of questions, discussions and additional guidance on how to tackle several areas of the lease accounting. Dear Christian, S. How would I account for leases of land with a life of 99 years? I end up @ IFRSbox whenever in doubt and have to say, no one else does a better job than you in clearing out the hazy parts in the IFRS. approach? Let me know your feedback. The tenant has moved out in January 2017. Do we credit ROUA and Debit Provision for onerous leases? At the end of each year, you simply book the rental expense of CU 10 000 in profit or loss. Hendrie, Ryan. Entity C has a 5-year lease for the floor of an office building. Hi Jay, Look at the lack of independence due to the auditor consulting businesses to their clients. Hi, you should amortize it, because it’s a prepayment. Your example above made the subject very understandable, However i have a query where with mutual understanding both lessor and lessee agree to vacate the place without any more liabilities at both end. Quick question though, If i made all my operating lease contracts to be under one year, I wouldn’t have to bother much about IFRS 16 right?! CU 1 429 relates to the cleaning element. does the Lessee depreciate it? lease liability 900, and every month Debit ROU asset Credit Lease liability, where ROU asset = all lease payments in 99 years discounted to present value. You’ll kill it! I mean, I tried to find examples but failed to find a simple explanation. – determine how these transactions are presented according to the current rules (IAS 17) When the IASB was established in 2001, it agreed to adopt all IAS standards, and name future standards as IFRS (International Financial Reporting Standards). Please could you upload an illustration of an example of an IFRS 16 note in the annual financial statements. I have a question about lease of land. As the lessor will continue to account for the asset in its books under IFRS 16, this results in the same asset being recorded by two separate entities. it’s not really a tangible or intangible asset as such. The new IFRS 16 introduces a new definition of a lease. Dear Petter, in practice, you would calculate the discount rate as the rate implicit in the lease. IFRS® is the IFRS Foundation’s registered Trade Mark and is used by Simlogic, s.r.o Whether separation of elements is applicable for both lessor and lessee? Beside this, we were showing operating lease commitments for these property rights in our financial statements. I just have a question, How will we classify the “right-of-use asset” in the balance sheet? rates for similar loans at the market). How about upon depreciation of the PPE? Gholipanah, Pari. I work for a bank (Ghana) and as usual most of the banking premises are rented. 2. The IASB met via video conference on 4 February 2021. I request you to please upload a video solving a comprehensive worked example.that will surely help us to get benefit from your supreme perfection on IFRS.

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