Entity C has a 5-year lease for the floor of an office building. It pays $75.000 a year and has an incremental borrowing rate of 5% (the…… Read more “IFRS 16 vs. IAS 17 – Presentation”
IFRS 16 provides an optional exemption from the full requirements of the standard for: Short-term leases (leases with a lease term of 12 months or less)Leases for which the underlying asset is…… Read more “IFRS 16 – Leases of Low Value Assets”
Lease modifications arise from changes to the underlying contract agreed between the lessee and the lessor subsequent to commencement of the lease. Under IFRS 16, the accounting…… Read more “IFRS 16 – Lease Modifications”
In a sale-and-leaseback transaction (‘SALT’), an entity (seller-lessee) sells an asset to another entity (buyer-lessor) who then leases it back to the seller-lessee. The accounting for a…… Read more “IFRS 16 – Sale & Leaseback”
In this article we shall focus our attention on an important question of IFRS 16. When does an agreement contain a lease? Under the new standard, a…… Read more “IFRS 16 – When does an agreement contain a lease?”
The new standard modifies the accounting treatment of the lessee, but keeps the approach to the lessor accounting the same. The sale and leaseback accounting treatment is also going to be different.