Upon transition to IFRS 16 and using modified retrospective approach, ABC will measure the lease liability asthe present value of the lease payments not paid at the date of adjustment, discounted using the discount rate applicable at the date of initial application (here 2.5%). Thus, at 1 Jan...
IFRS 16 prescribes a number of disclosures in the notes to the financial statements. I’d also like to point out that you have to apply IFRS 16 for the periods starting on or after1 January 2019(careful about the comparatives). You can apply IFRS 16 earlier than that, but only if you...
Here, it’s very simple and straightforward: ABC accounted for all the lease payments from the operating leasedirectly in profit or loss. Operating lease contract under IFRS 16 Under IFRS 16, ABC needs to recognize theright of use asset and the lease liability. The lease liability is calculate...
Ko Hing November 16, 2018 at 4:55 am Hi Silvia, many thanks for your clear explanation. It is very useful. I have a question about the borrowing rate. If the terms of rental agreement of a property are for 2 years at monthly rental of CU10,000 i.e. CU240,000 in total. The ...
this explanation does not rule out the possibility that Turkey’s secondary market does not suffer information asymmetry. Thus, another possibility for the reported findings on aftermarket performance may be that Turkey’s secondary market suffers from an information asymmetry problem that is alleviated ...
One explanation as to why Italy granted permission to use IFRS is that Italy likes to be seen to be modern and international and that, in practice, companies will not volunteer to use IFRS for their unconsolidated statements because they would then have to produce a different set for tax ...
For an explanation of the components of CSM movement other than the new business CSM, see "Non-GAAP and Other Financial Measures" in our 1Q23 MD&A. 1 The CSM decrease from the 1Q22 U.S. variable annuity reinsurance transaction is removed from the CSM balance as at January 1, 2022 with...
Although we have put forward the pro-incentive explanation, we cannot entirely rule out other reasons, such as the limitation of the applied models and methodology as well as unidentified confounding effects. Nonetheless, the belief that UK companies should not benefit from IFRS neglects the fact ...
Answer and Explanation: The kind of asset not physical in nature such as patent, trademarks, and the copyright is known as intangible assets. These assets are the long term...Become a member and unlock all Study Answers Try it risk-free for 30 days Try it...
Is it a lease under IFRS 16? Yes, here it probably is. Please see the explanation above. Is there some element other than lease element?Do we need to separate? Yes, we need to separate the cleaning element from the lease element. We did it above: ...