IFRS 16 Right to direct the use of the identified asset

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Last update 02/12/2019 [IFRS 16 B24] IFRS 16 Right to direct the use of the identified asset  Requiring a customer to have the right to direct the use of an identified asset is a change from IFRIC 4. A contract may have met IFRIC 4’s control criterion if, for example, the customer obtained substantially all … Read more

IFRS 16 Modification short-term lease

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Last update 06/12/2019 IFRS 16 Modification short-term lease – The life of a short-term lease The lease term It all starts with determining the lease term on the commencement date of the lease. A short-term lease must have a lease term of 12 months or less determined on the commencement date. Furthermore, it must not … Read more

IFRS 16 Leases Lease liability

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Last update 05/12/2019 IFRS 16 Leases Lease liability – The lease liability will be the present value of the lease payments not paid on the date the contract starts over the lease term. This will be calculated using the interest rate implicit in the lease or, if that is not known, the lessee’s incremental borrowing … Read more

IFRS 16 Leases Booklet

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Last update 05/12/2019 IFRS 16 Leases Booklet sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions. that faithfully represents those transactions. This information gives a basis for users of financial statements … Read more

IFRS 16 Leases and joint arrangements

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Last update 02/12/2019 IFRS 16 Leases and joint arrangements – Entities often enter into joint arrangements with other entities for certain activities (e.g., exploration of oil and gas fields, development of pharmaceutical products). A contract for the use of an asset by a joint arrangement might be entered into in a number of different ways, … Read more

IFRS 16 Leases

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Last update 28/11/2019 Topics hide IFRS 16 Leases Introduction IFRS 16 Scope Preceding IFRS Reasons for change – Lessee IFRS 16 Leases – Lessee Improved EBITDA IFRS 16 Leases Related posts: IFRS 16 Leases Introduction IFRS 16 Scope IFRS 16 Leases was introduced by IASB in January 2016. IFRS 16 Leases is effective for periods … Read more

IFRS 16 Lease term explained

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Last update 28/10/2019 IFRS 16 Lease term explained or the lease term includes the following items (IFRS 16 18): non-cancellable period of a lease; IFRS 16 Lease term explained 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 … Read more

IFRS 16 into the details

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Last update 21/12/2019 Recognition of a lease IFRS 16 into the details To start for the first time a reporting entity has to review all contracts to see whether a specific contract is a lease only or contains a lease component. Looking at the definition of a lease the reporting entity has to assess whether, … Read more

IFRS 15 Software contract modifications

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Last update 06/12/2019 IFRS 15 Software contract modifications – It is common in the software industry to change the scope or price of the contract. For example, a vendor may license software and provide post-contract customer support (PCS) to a customer in an initial transaction and then license additional software to the same customer at … Read more