IFRS 16 defines the interest rate implicit in the lease as “The rate of interest that causes the present value of (a) the lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the ...
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) Let me measure ROU asset as if IFRS 16 has always bee...
In reality, you need to measure the lease liability under modified retrospective approach as present value of the remaining lease payments discounted by the rate at the initial application. You can revise the same exampletaking different discount rates into account here. In this example, lease liabi...
However, as the accounting for some types of previously-called operating lease contracts dramatically changes, we need to distinguish whether we have a lease under IFRS 16 or some other service contract under different standard. As a simple illustration, let me come up with a small example: Imag...
Under IFRS 16, you need toseparatelease and non-lease components in the contract. For example, if you rent a warehouse and rental payments include the fees for cleaning services, then you should separate these payments between the lease payments and service payments and account for these elements...
So my questions is, for FYE 2019, should i consider the renewed 3 years in 2019 lease term calculation? Thank you Reply AhmadApril 12, 2020 at 3:59 pm Sorry. typo. The company renewed the contract for another 3 years until Dec 2022. ...
I want to know while remeasuring :The recognition of Lease Liability calculated with period ”0” ? For example if we have a change in Index rate in 20×5 and lease starts from 20×3 .So while calculation the new Lease liability on 20×5 do we use discount factor with n =0,n=1 ...
InIFRS,NPVis used broadly in value in use calculation according toIAS36. As you might know, value in use is critical for determining asset’s impairment loss. Also,NPVis sometimes used in calculation of amount of provision according toIAS37. When you have some onerous long-term contract, or...
For example, our company knows by the lease agreement that the annual rent increase is 4% (eg. this year $90,000 then next year $93,600 and so on, do I need to remeasure the lease liability every year or can I just take into account the actual increase in the initial calculation?
So for example, if in your country, sales of property are taxed at 35% and other income at 30%, then for calculation of deferred tax on your property you need to apply the tax rate based on your expected way of property’s recovery – if you plan to sell it, then measure your defe...