IFRS 16 Leases

Sub-leases under IFRS 16 The classification guidance in IFRS 16 means that many sub-leases are finance leases, impacting the financial position and financial performance of intermediate lessors. A sub-lease is a transaction in which a lessee (or ‘intermediate lessor’) grants a right to use the underlying asset to a third party, and the lease (or … Read more

Topics hide IFRS 16 Lessor accounting 1. Lessor accounting model 2. Lease classification 3. Operating lease model 4. Finance lease model 5. Presentation and disclosure 5.1 Lessor presentation 5.2 Lessor disclosure IFRS 16 Lessor accounting Lessors continue to classify leases as finance or operating leases. 1. Lessor accounting model The lessor follows a dual accounting … Read more

Topics hide Lessee accounting under IFRS 16 1. Lessee accounting model 2. Initial measurement of the lease liability 2.1 Lease payments 2.3 Discount rate 3. Initial measurement of the right-of-use asset 4. Subsequent measurement of the lease liability 4.1 Measurement basis 4.2 Remeasurement of the lease liability 5 Subsequent measurement of the right-of-use asset 5.1 … Read more

Topics hide IFRS 16 Variable lease payments Context of this narrative Variable lease payments that depend on an index or rate Reassessment of the lease liability Payments that depend on an index Worked example – Payments that depend on an index Worked example – Amortisation of lease liability and change in payment linked to an … Read more

Topics hide IFRS vs US GAAP Leases Standards Reference Overview Scope comparisons Identification of a lease Lease and non-lease components Definition of Lease term Definition of lease payments Definition of discount rate Definition of Initial direct costs Accounting for leases – Lessor – Classification of a lease Accounting for leases – Lessor – IFRS vs … Read more

Topics hide Lease payments – Lessee perspective Categories of lease payment Residual value guarantees Renewal, termination and purchase options Lease payments – Lessor perspective Payments that depend on an index or rate Initial measurement of the lease liability Reassessment of the lease liability Payments that depend on an index Payments that depend on a rate … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Topics hide 9 Essential Leases and no leases examples 1. Lease Rail cars 2. Not a lease Rail cars 3. No lease Contract for shirts 4. No Lease – Contract with a ship owner 5. Lease – Contract with a ship owner 6. No lease Concession space 7. Lease of … Read more