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by tracy23282000
16 Jan 2020, 03:17
Forum: IFRS-related topics
Topic: Useful life vs Lease term
Replies: 6
Views: 4766

Re: Useful life vs Lease term

Thanks for your reply. But the contract stated lease term as 10 years, what you mean is that amortise for 4 years is that to treat it like the lease term is 4 years only, then when the lessor replace a new asset to me, and if the asset's useful life is also 4 years, then I recognise the next 4 years...
by tracy23282000
15 Jan 2020, 07:48
Forum: IFRS-related topics
Topic: Useful life vs Lease term
Replies: 6
Views: 4766

Useful life vs Lease term

Hi All! I have leased an identified asset with useful life of 4 years, but lease term stated in contract as 10 years, provided that lessor will replace the asset when it become obsolete so it is available for use for 10 years. There is no option to purchase the asset by the end of lease term. Should...