IFRS 16: Treatment of lease liability under IAS 17

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kishant50
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Joined: 19 Jul 2020, 13:13

IFRS 16: Treatment of lease liability under IAS 17

Post by kishant50 »

Hello,
How to account for the lease liability under IAS 17 using straight line method, after application of IFRS 16 ( recognized ROU asset in Modified Retrospective Approach at PV of Lease liability)?
Thanks
pub_acco
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Re: IFRS 16: Treatment of lease liability under IAS 17

Post by pub_acco »

Does IAS 17 exist?
kishant50
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Joined: 19 Jul 2020, 13:13

Re: IFRS 16: Treatment of lease liability under IAS 17

Post by kishant50 »

How to treat the 'Lease liability' under IAS 17 on initial application of IFRS 16?
kishant50
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Re: IFRS 16: Treatment of lease liability under IAS 17

Post by kishant50 »

I mean is it shown in Equity or in Profit or Loss?
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Marek Muc
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Re: IFRS 16: Treatment of lease liability under IAS 17

Post by Marek Muc »

I thought everyone has already transitioned to IFRS 16 :)

There are two methods of transition allowed by IFRS 16 (full retrospective or modified retrospective), have a read:

https://ifrscommunity.com/knowledge-bas ... o-ifrs-16/

Which one did you choose?
kishant50
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Joined: 19 Jul 2020, 13:13

Re: IFRS 16: Treatment of lease liability under IAS 17

Post by kishant50 »

We are applying the Modified Retrospective Approach with the practical expedient (showing ROU asset at PV of outstanding lease payments) from this year.
How can we account for opening lease liability calculated under the previous lease standard?
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Marek Muc
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Re: IFRS 16: Treatment of lease liability under IAS 17

Post by Marek Muc »

You need to diligently go through paragraphs C7 to C11 of IFRS 16.
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