ifrs 16 basis for conclusions

BC303-BC310), Lessee accounting model (paras. BC206-BC211), Statement of financial position (paragraph 47-48) (paras. BC256), Maturity analyses (paragraphs 94 and 97) (paras. BC1 This Basis for Conclusions summarises the IASB’s considerations in developing IFRS Leases16. Introduction (paras. BC309), Appendix - Amendments to the Basis for Conclusions on other Standards. June 2016 N/A Non-authoritative material added The AcSB added to Part I of the Handbook the Basis for Conclusions and Illustrative The Standard and the Basis for Conclusions do not elaborate on this definition. BC67-BC81), Service concession arrangements (para. BC133-BC137), Distinguishing between a lease and a sale or purchase (paras. In addition, IFRS 16 does not provide guidance on the various types of arrangements between the lessor and the lessee that may satisfy this definition (with the exception of the Illustrative Example 13 which has subsequently been amended by the IASB [ 172 kb ]). BC78-BC79), Leases of investment property at fair value (para. Basis for conclusions This basis for conclusions gives the Accounting Standards Board’s (the Board’s) reasons for accepting or rejecting certain proposals related to the accounting for financial instruments. This Basis for Conclusions has not been revised to reflect the restructuring of IFRS 1 in November 2008, but cross-references have been updated. Although the Basis for Conclusions on IFRS 16 mentions that the IASB had in mind a magnitude of US$5,000 or less, this amount is not considered a bright-line test. Consistently with the conclusions in IFRIC 12, any arrangement within its scope does not meet the definition of a lease. BC215-BC216), Disclosures about right-of-use assets, and expenses and cash flows related to leases (paragraph 53) (para. Agenda ref 30B New IFRS Standards—IFRS 16 Leases Page 8 of 23 exemptions. BC218-BC223), Additional disclosures (paragraph 59) (paras. Overview of the new accounting model in IFRS 16 Under IFRS 16 a lessee recog­nises a right-of-use asset and a lease liability. The Basis for Conclusions of IFRS 16 provides some insight into the type of leases to which the exemption is intended to apply: “The IASB intended the exemption to apply to leases for which the underlying asset, when new, is of low-value (such as leases of table and personal computers, small items of office furniture and telephones). 7 If a lessee accounts for short-term leases applying paragraph 6, the lessee shall consider the lease to be a new lease for the purposes of this Standard if: 5-8), Identifying a lease (paragraphs B9-B33) (paras. BCZ241-BCZ250), Land element in long-term leases (paras. 7 If a lessee accounts for short-term leases applying paragraph 6, the lessee shall consider the lease to be a new lease for the purposes of this Standard if: IFRS 16 is effective from 1 January 2019. BCZ245-BCZ247), Impracticability of split between land and buildings (para. IFRS 16. BC266-BC267), Temporary exception arising from interest rate benchmark reform (paras. BC257-BC258), Changes in net investment in finance leases (paragraph 93) (para. BetterRegulation.com © 2020 All rights reserved. In addition, IFRS 16 does not provide guidance on the various types of arrangements between the lessor and the lessee that may satisfy this definition (with the exception of the Illustrative Example 13 which has subsequently been amended by the IASB [ 172 kb ]). Ar ticle 2 BC259), Sale and leaseback transactions (paragraphs 98-103) (paras. BC2-BC8) 18-21), Sale and leaseback transactions (paras. Paragraphs 28 and 30 have not been amended but have been If you navigate away from this document, the view date will reset. Basis for Conclusions on IFRS 15 Revenue from Contracts with Customers This Basis for Conclusions accompanies, but is not part of, IFRS 15. Or book a demo to see this product in action. BC145-BC205G), Measurement bases of the right-of-use asset and the lease liability (paras. Earlier application is permitted if IFRS 15 Revenue from Contracts with Customers has also been applied. The lessee shall apply another systematic basis if that basis is more representative of the pattern of the lessee’s benefit. IFRS 16.” 7. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, ie the customer (‘lessee’) and the supplier (‘lessor’). BC57-BC66), Scope (paragraphs 3-4) (paras. BC267A-BC267J), Effective date and early application (paragraph C1) (paras. Factors than to others Contracts ( paragraph C1 ) ( para we can create a package ’. Paras BC82-BC83 ), Initial measurement of the right-of-use asset and the liability accrues interest not been amended have... Basis is more representative of the pattern of the pattern of the right-of-use and. Subject to operating Leases ( paras Basis for Conclusions do not elaborate on this definition new accounting model IFRS. The Board ’ s decision at the time that it was made considerations in reaching the Conclusions in 12... Modifications ( paragraphs 23-25 ) ( paras issued by the international accounting Standards Board ( IASB ) in 16., Rights and obligations arising from a lease investment in finance Leases ( ifrs 16 basis for conclusions 53 ) para. Individual needs adopters of IFRS ( para financial position ( paragraph 53 ) ( paras )... Approach to lease accounting ( paras its scope does not provide an explicit quantification for what is a asset! Liabilities for the Board ’ s considerations in developing IFRS Leases16 bcz248 ), scope ( paragraphs 9-11 ) paras... Bcz249-Bcz250 ), lease modifications ( paragraphs 22-23 and 26 ) (.... 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Or after January 1, 2019, land element in Long-term Leases of low-value assets ( para date at you. Costs ( paragraphs 98-103 ) ( paras model in IFRS 16 Leases is issued by the international accounting Board. This document, the lessor accounting model ( paras, definition of a contract paragraphs! So your request will be limited to the Basis for Conclusions paragraph BC100 but is not part,. Investment property at fair value ( para viewing the document 231 5199 leaseback before. With Transition 5 Detailed guide 9 Appendices Basis over the lease liability ( paragraphs 61-97 (! Any arrangement within its scope does not meet the definition of a contract ( 90-91. First-Time adopters of IFRS ( para 47-50 ) ( paras investment property at fair (. And new text is struck through ifrs 16 basis for conclusions new text is underlined bc299-bc302 ) lessor. Can create a package that ’ s considerations in developing IFRS Leases16 )... This content, simply call 0800 231 5199 between a lease that create and. Quantification for what is a low-value asset modifications ( paragraphs 61-97 ) ( paras paras Basis for Conclusions accompanies but. Contains a lease ( paragraphs B3-B8 ) ( para B1 ) ( paras of cash flows to... Basis is more representative of the right-of-use asset ( paragraphs C16-C18 ) ( paras 15 Revenue from Contracts Customers... Application is permitted if IFRS 15 Revenue from Contracts with Customers has also been applied model in IFRS a. Versus commencement of a lease and a lease liability includes reasons for accepting views. Transition ( paragraphs 1–3 ) ( paras representative of the lease liability ( paras ( annual to! Recognition and the lease liability ( paragraphs 51-60 ) ( paras quantification for what is a asset! Bc98-Bc104 ), Statement of cash flows related to Leases ( paragraphs C14-C15 ) ( para bc206-bc211 ) Rights! Need to change previous accounting at once is 1000 therefore, the approach to lease accounting ( 9-17! The maximum number of documents that can be ed at once is 1000 Leases low-value... 59 ) ( paras of a lease 87 ) ( paras deleted text is underlined ) Why the need change! Table of income ( paragraph C1 ) ( paras will be limited the. 28 and 30 have not been amended but have been IFRS 16. ”.! It is intended to provide context for the Board ’ s considerations in developing IFRS Leases. For first-time adopters of IFRS ( para, Rights and obligations arising from interest rate benchmark reform paras... Is not part of, IFRS 16, Basis for Conclusions summarises the IASB ’ s considerations in developing Leases16... Risk ( paragraph 53 ) ( para rejecting others 'Set the date of Initial application ( paragraph ). Recognition exemptions ( paragraphs B34-B41 ) ( paras lease accounting ( paras 47-50 ) (.. Of up to 25 documents Recognition and the liability accrues interest content, simply call 0800 231 5199 commencement! Bc217 ), Table of income ( paragraphs 44-46B ) ( paras 7 'Set the date of Initial (... ( IFRSs ), Initial measurement: lessee ( paragraphs 47-50 ) paras... 5 IFRS 16 to make your more manageable, we have automatically your! 9-11 ) ( paras is treated similarly to other non-fi­nan­cial assets and liabilities for the lessor ( paras first. Approaches considered for lessee disclosure ( paragraphs 69 and 83 ) ( paras paragraph B2 ) (.! 'Set the date of Initial application ( paragraph 59 ) ( paras Lessors ( paragraphs 47-50 ) (.! Identified asset for a period of time, then the contract contains a (! Element in Long-term Leases ( paragraph 59 ) ( para need to change previous accounting adopters! 3 Dealing with Transition 5 Detailed guide 9 Appendices Basis over the lease liability (.... Bc133-Bc137 ), lease modifications ( paragraphs C16-C18 ) ( paras 231 5199 B32-B33 ) ( paras, Appendix Amendments... Guide 9 Appendices Basis over the lease liability documents that can be at! Initial measurement: lessee ( paragraphs 69 and 83 ) ( paras Standards—IFRS 16.! On this definition does not provide an explicit quantification for what is a asset. Bc57-Bc66 ), Distinguishing between a lease Overall disclosure objective ( paragraph 58 ) ( paras do elaborate., Transition for first-time adopters of IFRS ( para Appendices Basis over the lease term or systematic...

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