IFRS 16 Sub-Lease DEPICTS that such transaction is accounted for by the sub-lessor in the same way as other leases. Under IFRS 16 the head lease and sublease are SEPARATE contracts that are accounted for under the ‘Lessee and Lessor Models‘. The sub-lease is classified by reference to the Right … Read More
IFRS 16 Sale and Leaseback a Concept which EXPLAINS that such transaction is accounted for as a ‘sale‘ of an underlying asset and a ‘leaseback‘ of that underlying asset only if the initial transaction QUALIFIES as a sale in accordance with IFRS 15 ‘Revenue from Contracts with Customers‘. In a ‘Sale … Read More
IFRS 16 Lessor Accounting DESCRIBES that lessors account for finance leases by initially de-recognizing the asset and recognizing a receivable for the net investment in the lease. Initial direct costs (other than those incurred by a Manufacturer/(Dealer) lessor) are INCLUDED in the ‘Net Investment in the Lease’. IFRS 16 Lessor Accounting … Read More
Lessee Accounting a concept that DEPICTS the way by which a company records the financial impacts of its leasing activities. As per IFRS 16, Lessees recognize ‘Right of Use’ Asset (RoU) and ‘Lease Liability’, reflecting the present value (PV) of future lease payments. IFRS 16 (Leases) – Objective The ‘objective‘of … Read More
IFRS 15 Summary BRIEFLY describes ‘Revenue from Contracts with Customers’, whose objective is that an entity will RECOGNIZE revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. … Read More
IFRS 15 5 Step Model ESTABLISHES the criteria on the basis of which ‘Revenue from Contracts with Customers‘ is recognized, effective from 1st January 2018 and replaced IAS 18, IAS 11, SIC 31, IFRIC 13, IFRIC 15, and IFRIC 18. International Financial Reporting Standards (IFRS) has PROVIDED IFRS 15 Five … Read More