Intercompany Equipment Lease Agreement

Under IFRS 16 yes, if you meet the definition of leasing, you must register an asset (right to use). There are only 2 exceptions if you don`t register the assets – please look at the article above. S. Thank you for your detailed explanation in an understandable way. I am a little perplexed about your point, that IFRS16 does not concern the books of renters, but I have to clarify the following points: a. Does the separation of elements apply equally to landlords and tenants? B. How do we ensure that unit costs are measured fairly against market prices? c. Should I consider a one-year contract with a non-resilient two-month period, with the option of suing/terminating the lease? d. All leases in a particular position in SFP? Hello Ridwan, I do not agree with your spokesperson – yes, office rental can be influenced by IFRS 16, depending on the specific terms of the contract. For your other questions, it is too long to answer the comment, but please check out this article and also this one, they will help you.

P. This means that if you do have a number of contracts as in the case of a lease under IAS 17 Leasing, you will continue to do so under the new standard (carefully, the methodology may change). The objective of the new standard is to eliminate off-balance sheet financing, but it seems that in the case of an operational lease, we have twice the assets. Once on the owner`s book, then on the tenant book as a right to use the asset. In accordance with the new IFRS 16 standard, you must assess whether these contracts contain leases within the meaning of IFRS 16. This model is very similar to the accounting of leasing documents according to IAS 17. Considering that the balance sheet remains unchanged, it will result in a single asset, which will be recorded in its books by two separate companies, which seems strange. Can you confirm that? However, some operating leases were not terminatable and therefore constituted liability (and assets) for the underwriters.

1. Do we depreciate the rental premium over the life of the lease? Or do we cost the entire lease premium to P-L? A parent company has a lease for the rental of the Office with the owner. The parent company pays this rent to the seller. It then collects cross-fee fees for its subsidiary, which uses this building. There is no agreement between the subsidiary and the lessor or an agreement on the cross-load between the parent company and the subsidiary. Should we consider this as a sublease contract? Dear Silvia, according to IFRS 16 for the taker, there is no financing or operating lease, there is an equal treatment “right to use assets” well, if the lessor is a holding company and the tenant is a subsidiary, which is about eliminating the listing in relation to a consolidation of finances, if we apply the operating benefits “The same assets are displayed in both companies and expired, but in another amount? If you say, 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.