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Last update 01/11/2019 In a Business Combinations, these –by definition– are intangible assets and are therefore recognised separately from goodwill, provided that their fair values can be measured reliably. These intangible assets meet the definition of an intangible asset because they again –by definition– arise from contractual or other legal rights.  Topics hide These are … Read more

Last update 04/12/2019 Leases Contract for shirts – A case to make it easier to understand the concept of leasing and ultimately the accounting for such lease under IFRS 16 Leases. The case: Leases Contract for shirts Customer enters into a contract with a manufacturer (Supplier) to purchase a particular type, quality and quantity of … Read more

Last update 21/12/2019 Summary Leases capitalisation on the balance sheet IFRS 16 includes a single accounting model for all leases by lessees. The main implications of the new standard on current practice for lessees include: No more operating leases under IFRS 16 (subject to the exceptions described below) All leases (subject to the exceptions described … Read more

Last update 22/12/2019 Leasehold makegood and restoration provisions – Lease makegood / leasehold restoration provisions should be recognised in relation to properties held under operating leases. Such a provision may arise because many property leases contain clauses under which the lessee has to make good dilapidations or other damage which occurs to the property during … Read more

Last update 23/11/2019 Lease Rail cars is an example and see below for the opposite Not a Lease Rail cars, the difference will give you a lesson!!!! Topics hide Lease Rail cars The case: Lease – Rail cars Conclusion The reasoning: Lease – Rail cars Lease – Rail cars Not a lease Rail cars The … Read more

Last update 06/12/2019 Lease of retail space – When is a lease a lease and capitalised in the balance sheet and when is a contract a rental contract not a lease and expensed through profit or loss and disclosed as off-balance sheet commitments. Want to assess a no lease, look here and below a case … Read more

Last update 24/12/2019 The case: Lease of a ship Customer enters into a contract with Supplier for the use of a specified ship for a five-year period. The ship is explicitly specified in the contract and Supplier does not have substitution rights. Customer decides what cargo will be transported, and whether, when and to which … Read more

Last update 05/12/2019 Lease modifications extending the lease term Seemingly innocuous changes to an agreement could be a lease modification. They could affect your right-of-use asset and lease liability at unexpected times with major consequences for balance sheet ratios. Are you prepared for them? IFRS 16 contains detailed guidance on how to account for lease … Read more

Last update 06/12/2019 Lease and No lease Fibre-optic cable – What case is a lease and what case is not a lease? Key to the answers of this question is whether the identified right to use is a distinct good or service. It shows that wording in a contract is of major importance to qualify … Read more

Last update 05/12/2019 Key differences between GM and VFA Insurance – The Variable Fee Approach (‘VFA’) is a modification of the General Model. The General Model is applied to insurance contracts without participation features or to insurance contracts with participation features that fail the Variable fee scope test. Thus, the VFA is applied to insurance … Read more