Excel work-IFRS16

All topics related to IFRS Standards.
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Pinko
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Excel work-IFRS16

Post by Pinko »

My question comes from https://ifrscommunity.com/knowledge-bas ... _lessor_01

Accounting entries at the commencement date:

DR CR
95,000 Net investment in the lease
90,000 Equipment held for lease
88,398 Revenue
83,398 Cost of goods sold

I do not understand why recognise all revenue and cost of goods sold for 2001-2005 at commencement 1.1.2001
Could you explain for me?

For Dr 95000 FV and Cr 90000 NBV, this entry is for revaluation?

Thank you for your help
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Marek Muc
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Re: Excel work-IFRS16

Post by Marek Muc »

Entries in this example are given for manufacturer / dealer lessor, it is explained here:

https://ifrscommunity.com/knowledge-bas ... er-lessors
Pinko
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Re: Excel work-IFRS16

Post by Pinko »

I see, thank you
But if the example is the case of retailer not manufacturer then how to recognise revenue and cost of sale?
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Marek Muc
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Re: Excel work-IFRS16

Post by Marek Muc »

it can be shown net as a gain/loss on disposal of an asset, it depends on the accounting policy of the lessor
Pinko
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Re: Excel work-IFRS16

Post by Pinko »

the gain/loss in OCI or PL?
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Marek Muc
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Re: Excel work-IFRS16

Post by Marek Muc »

P&L
Pinko
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Re: Excel work-IFRS16

Post by Pinko »

Could you tell me what situation gain/loss in OCI?
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