How can existing operational leasing contracts be managed if IAS 16 is adopted? Tenants can change the way leases are structured to minimize the impact on their transactions. One option is to reduce rental conditions, as a longer lease creates a greater user fee and a greater liability on the balance sheet. We can also see more net leases, as gross leasing and firm payments also increase the value of the right to use the assets. Landlords may also begin to allocate more rent for common land maintenance or other common costs to reduce fixed interest rates and reduce their tenant`s book value. They`re Rikas. Just for my question. Currently, the lease is paid for $200 per month on the 1st of each month, now we have to apply IFRS 16 A small detail, I was wondering if the right to use the asset could go under the short-term assets, for example the amount of leasing debt that is due in the next 12 months. Can I count this amount as a current renovation? I ask, because of the performance ratios, for example. B short-term assets/short-term liabilities, which may have a less significant effect. Dear Silvia Since the objective of IFRS 16 is to encourage the use of “off-balance sheet leases” when an entity designates an asset that is leased for each year under the name of a “one-year contract,” it is counted as an “operating laese” as it is a 12-month contractual objective (Excption 1). How do we, as accountants, manage this situation? With Hi slay, you should check your current transactions to which you apply IAS 17 and compare whether the rules of IFRS 16 are changed against those specific transactions. Pay attention to operational leasing, especially as the rules have changed. Then you have to calculate — determine how these transactions are presented under the current rules (IAS 17) — as they would have been presented under IFRS 16 — calculate the differences and account for them on equity, as at the beginning of the reference period.
You also need to adjust the comparisons. P. First, IAS 17 requires that assets acquired under a financing lease be depreciated at a shorter date in the lease life and their economic life. what will happen to the book value of the lease-related asset at the end of its lease term, if the term of the lease is shorter than the term of economic utility, since the asset would have been fully depreciated on that date, but it continues to generate economic benefits for the entity; Is it necessary for us to list assets in the leasing only if the contract is fixed? Or we collect the right to use assets regardless of the time in IFRS paragraphs 16.63 to 65 of the examples and indicators that, individually or in combination, would lead to a lease being considered a financing lease. Good morning, Silvia. Their efforts to simplify IFRS are highly appreciated and taken into account. Please, I would like to ask if we do not pay the rental fee at the beginning of each year at the end, 1- I will just register the assets and debts or there are other accounts.