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Lease Term (IFRS 16)

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Last updated: 19 March 2020 Lease term comprises the following (IFRS 16.18): non-cancellable period of a lease, periods covered by an option to extend the lease – if the lessee (customer) is reasonably certain to exercise that option; and periods covered by an option to terminate the lease – if the lessee (customer) is reasonably certain … Read more

Identifying a Lease (IFRS 16)

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Last updated: 16 May 2020 Decision tree for identifying a lease At inception of a contract, an entity should assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract gives the right to control the use of an identified asset (‘underlying asset’) for a period of … Read more

Scope of IFRS 16

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Last updated: 29 July 2019 IFRS 16 sets out principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 applies to all leases, except for items listed in paragraph IFRS 16.3. Specific recognition exemptions are provided for short-term leases and leases of low value assets (IFRS 16.5-8). IFRS 16 sets out substantially different … Read more

IFRS 15: Disclosure

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Last updated: 7 November 2018 Disclosure requirements relating to contracts with customers are set out in paragraphs IFRS 15.110-128; B87-B89. As these disclosure requirements are quite extensive and some of them are not relevant for all entities, the IASB made it clear that the disclosure requirements should not be treated as a checklist, but instead … Read more

Contract Costs (IFRS 15)

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Last updated: 30 March 2020 IFRS 15 specifically deals with incremental costs of obtaining a contract and costs to fulfil a contract. Incremental costs of obtaining a contract Incremental costs of obtaining a contract are those costs that the entity would not have incurred if the contract had not been obtained (e.g. if any of … Read more

Contract Assets and Contract Liabilities (IFRS 15)

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Last updated: 26 July 2019 Contract asset Contract asset is recognised when a performance obligation is satisfied (and revenue recognised), but the payment is conditional not only on the passage of time. The other conditions usually relate to entity’s fulfilment of other performance obligations in the contract. Contract assets are different from trade receivables, because trade … Read more

IAS 10 Objective Scope Definitions

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Objective 1 The objective of this Standard is to prescribe: when an entity should adjust its financial statements for events after the reporting period; and the disclosures that an entity should give about the date when the financial statements were authorised for issue and about events after the reporting period. The Standard also requires that … Read more

IAS 1 Objective Scope Definitions

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IAS 1 Objective IAS 1 Objective Scope Definitions 1 This Standard prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their … Read more