I have a question regarding where to present the advance payment on leases in the cash flow stament. under any section of cash flow stems from operations, investing and financing activities>
thank you
IFRS 16 Advance Payment - Cash flow presentation
Re: IFRS 16 Advance Payment - Cash flow presentation
you mean you have paid some office rent in advance, for example?
Re: IFRS 16 Advance Payment - Cash flow presentation
This payment gives rise to a RoU asset, so I would present it as investing cash flow. However, if the payment is made after the lease commencement date, then it's a repayment of the related lease liability and hence shown within financing activities.
Which scenario applies to you?
Which scenario applies to you?
Re: IFRS 16 Advance Payment - Cash flow presentation
I paid it in the beginning of the contract as at an advance payment
Re: IFRS 16 Advance Payment - Cash flow presentation
How if I presented in the operating activities as it in the paragraph 50 in the IFRS 16 standard. Is correct to apply this paragraph.
“ 50
In the statement of cash flows, a lessee shall classify:
(a)
cash payments for the principal portion of the lease liability within financing activities;
(b)
cash payments for the interest portion of the lease liability applying the requirements in IAS 7 Statement of Cash Flows for interest paid; and
(c)
short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability within operating activities.”
“ 50
In the statement of cash flows, a lessee shall classify:
(a)
cash payments for the principal portion of the lease liability within financing activities;
(b)
cash payments for the interest portion of the lease liability applying the requirements in IAS 7 Statement of Cash Flows for interest paid; and
(c)
short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liability within operating activities.”
Re: IFRS 16 Advance Payment - Cash flow presentation
Does point c apply to your lease?
Re: IFRS 16 Advance Payment - Cash flow presentation
I'm not sure it's even included in para 50 of IFRS 16.
I agree with Marek, it's ROU and it should be presented as operating cash flow.
I agree with Marek, it's ROU and it should be presented as operating cash flow.