Now let’s cover the disclosure requirements for lessees under IFRS 16. Within the notes to the financial statements, an entity is expected to present both qualitative and quantitative disclosures regarding their leasing activities for the respective reporting period(s). The quantitative disclosures req...
I am grateful for many responses and comments I got from you. Almost all e-mails I received from you asked me to publish solved numerical example to see how to implement IFRS 16 in practice. Therefore, unlike in my other usual articles, this time I’ll solve one example with one specifi...
For example, lessors apply the new: – definition of a lease (see Chapter 4); – sub-lease guidance (see Chapter 8); – sale-and-leaseback guidance (see Chapter 9); and – disclosure requirements (see Section 3.5). In addition, IFRS 16 includes specific guidance on accounting for ...
there is an optional relief upon transition: entities can choose not to revisit contracts already deemed not to be leases (under IFRIC 4) and only transition those non-exempt contracts. A disclosure of the approach taken would be required
IFRSS 16 does not specify that lease liabilities should be split between non-current and current liabilities, but this should be done as best practice. Disclosure requirements for lessees The objective of the disclosure requirements is to allow users to assess the effect that leases have on the...
The objective of the standard IFRS 16 Leases is tospecify the rules for recognition, measurement, presentation and disclosure of leases. Special For You!Have you already checked out theIFRS Kit? It’s a full IFRS learning package with more than 40 hours of private video tutorials, more than ...
Lessees need to prepare for new, significantly enhanced disclosure requirements One more item complicating the implementation of IFRS 16? Ghost assets. The reality of ghost assets As much as you would like to believe that companies can keep track of all their fixed assets, that is not always ...
Option 1:As IFRS 16 has always been applied(using discount rate at the date of adjustment) – for our example, see calculation below. Option 2:In the amount of a lease liability: CU 285 602 – see calculation above (Decision #3) ...
For example, imagine you rent an office space and you pay CU 10 000 monthly for the rent. The price includes the cleaning services. Normally, you would need to split the payment of CU 10 000 into the payment for the lease element (rent) and non-lease element (cleaning). ...
She suggested adding disclosure requirements to explain the linkage of the incremental borrowing rates and the interest rates for entities’ borrowings. She further noted the abundant cost and effort spent on lease modifications and suggested that IFRS 16 should give a relief for immaterial ...