As a financial service provider we have been asked by a client to make an asset (which is providing electric energy) available to them so it is off-balance sheet for the client.
What can be done? As far as I understand, with IFRS16 operating lease no solution anymore.
How about an asset-as-a-service solution (pay-per-use) where the client pays according to the energy used. Which criteria needed to be fulfilled so this can be off balance sheet?
Asset-as-a-service. Off balance sheet?
Re: Asset-as-a-service. Off balance sheet?
what do you mean by 'an asset providing electric energy', what do they want to achieve?
Re: Asset-as-a-service. Off balance sheet?
In this case it is about large scale batteries but we also work on other projects which are about charging infrastructure for heavy duty electric mobility.
Re: Asset-as-a-service. Off balance sheet?
I see. Then your client needs a contract to purchase services (e.g. storing energy). How to do it? Go through the decision tree below and make sure that the contract does *not* satisfy the definition of a lease:
https://ifrscommunity.com/knowledge-bas ... g-a-lease/
https://ifrscommunity.com/knowledge-bas ... g-a-lease/
Re: Asset-as-a-service. Off balance sheet?
Excellent - thank you!
Re: Asset-as-a-service. Off balance sheet?
Sounds like an interesting scenario where your customer is interested in a solution based on the accounting first!