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SLFRS 16

The document outlines the accounting treatment for leases from the lessee's perspective, emphasizing the recognition of lease expenses in the profit and loss statement. It details the initial and subsequent measurement of right-of-use assets and lease liabilities, including methods for depreciation and impairment. Additionally, it discusses exemptions for short-term and low-value leases, as well as the economic benefits and decision-making authority retained by the lessee.

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melan kavishka
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84 views1 page

SLFRS 16

The document outlines the accounting treatment for leases from the lessee's perspective, emphasizing the recognition of lease expenses in the profit and loss statement. It details the initial and subsequent measurement of right-of-use assets and lease liabilities, including methods for depreciation and impairment. Additionally, it discusses exemptions for short-term and low-value leases, as well as the economic benefits and decision-making authority retained by the lessee.

Uploaded by

melan kavishka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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NO

ACCOUNTING AGREEMENT CONTAINS A LEASE ASSET NOT A LEASE

ECONOMIC BENEFITS ARE WITH LESSEE


NO

EXEMPTIONS DECISIONS ARE TAKEN BY LESSEE


YES
SHORT TERM LEASE < 12 MONTHS LEASE

LOW VALUE LEASE INDEPENDENT BENEFITS NOT INTERDEPENDENT NOT SUBLEASED

RECOGNIZE THE LEASE EXPENSE IN PnL


RIGHT OF USE ASSET

ACCOUNTING IN LESSEES’ BOOKS


AGREED
RIGHT OF USE ASSET INITIAL MEASUREMENT COST
LESSOR TIME LESSEE
(OWNER) (USER)
DOWN PAYMENT USEFUL LIFE
LOWER OF
LEASE LIABILITY
YES
LEASE PAYMENT DIRECT COST USEFUL LIFE

OWNERSHIP TRANSFER NO LEASE PERIOD

SUBSEQUENT MEASUREMENT

COST MODEL
COST (-) ACCUMULATED DEPRECIATION (-) ACCUMULATED IMPAIRMENT
LOSS
REVALUATION MODEL REVALUED AMOUNT
(-) SUBSEQUENT (-) SUBSEQUENT
ACCUMULATED ACCUMULATED
DEPRECIATION IMAIRMENT LOSS

LEASE LIABILITY INITIAL MEASUREMENT PRESENT VALUE OF LEASE PAYMENTS 1/1+𝑟 𝑛

FIXED PAYMENT VARIABLE PAYMENT GUARANTEED RESIDUAL VALUE

SUBSEQUENT MEASUREMENT CURRENT = NEXT INSTALLMENT – INTEREST IN NEXT INSTALLMENT

OPENING LIABILITY + INTEREST – LEASE INSTALLMENTS = CLOSING LIABILITY


NON-CURRENT = CLOSING LIABILITY – CURRENT PORTION

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