I would like to take your opinion on a case ..
A Company has signed a contract for the supply and use of an Innovative equipment. as per the contract;
1) 3 mm down-payment
2) annual EMI of 1 million from 1- 8 years (Total 10 Million under the deal)
Alternatively The machine cost is 9 million and annual charge of 500K if on purchase option, wherein the 9 Million has to pay upfront- [These rates were available as part of the contract]. The company opted for the first option..
The ownership gets transferred once all payments settled.. Is it a lease and will IFRS 16 apply, If not please can you share your inferences in this case..
IFRS 16 OR IAS 16???
Re: IFRS 16 OR IAS 16???
And what is your opinion after reading this page?:
https://ifrscommunity.com/knowledge-bas ... g-a-lease/
https://ifrscommunity.com/knowledge-bas ... g-a-lease/
Re: IFRS 16 OR IAS 16???
the question reads exactly like an exam question on the topic! (maybe it is one?)
Re: IFRS 16 OR IAS 16???
you're probably right! an exam question or some kind of homework
Re: IFRS 16 OR IAS 16???
Seriously it was a real scenario
Re: IFRS 16 OR IAS 16???
What was your answer?