Page 1 of 1

IFRS 16 - Lease novation

Posted: 08 Sep 2021, 06:06
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

Re: IFRS 16 - Lease novation

Posted: 08 Sep 2021, 12:53
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