Yakub02
Banned
Identifying a lease It is usually straightforward to identify a leasing contract. However, some contracts might not have the legal form of a lease but still might convey a right to use an asset in return for a payment or series of payments.
Such contracts (either in whole or in part) are subject to the rules in IFRS 16. Examples of such contracts might include: certain outsourcing arrangements; arrangements in the telecommunications industry where suppliers of network capacity sell rights to capacity
The issues addressed by IFRS 16 are as follows: how to determine whether an arrangement is (or contains) a lease as defined; and
if an arrangement is (or contains) a lease, how the payments for the lease should be separated from payments for any other elements in the arrangement. Existence of a lease
A contract that gives the lessee the right to control the use of an identified asset for a period of time in exchange for consideration is (or contains) a lease. A period of time may be described in terms of usage.
For example, a contract might allow for the use of a vehicle for 20,000 km. A contract conveys the right to control the use of an identified asset
Such contracts (either in whole or in part) are subject to the rules in IFRS 16. Examples of such contracts might include: certain outsourcing arrangements; arrangements in the telecommunications industry where suppliers of network capacity sell rights to capacity
The issues addressed by IFRS 16 are as follows: how to determine whether an arrangement is (or contains) a lease as defined; and
if an arrangement is (or contains) a lease, how the payments for the lease should be separated from payments for any other elements in the arrangement. Existence of a lease
A contract that gives the lessee the right to control the use of an identified asset for a period of time in exchange for consideration is (or contains) a lease. A period of time may be described in terms of usage.
For example, a contract might allow for the use of a vehicle for 20,000 km. A contract conveys the right to control the use of an identified asset