IFRS 16 - Lease novation

All topics related to IFRS Standards.
Post Reply
Kat
Posts: 1
Joined: 08 Sep 2021, 05:29

IFRS 16 - Lease novation

Post by Kat »

Recently Company A has novated the office lease to its fellow subsidiary, Company B. Does it consider as termination of lease (write off ROU assets and liabilities) under Company A and capitalize the lease under Company B? Or should it be booked as transfer of assets and liabilities through interco (no impact of PnL)?

Thanks
Kat
User avatar
Marek Muc
Site Admin
Posts: 1710
Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland

Re: IFRS 16 - Lease novation

Post by Marek Muc »

I would go for termination and new lease in separate financial statements, but without any impact on consolidated financial statements, so consolidation adjustments will be necessary
Post Reply