IFRS 16 lease identification

[KLA2024]

Hello everyone,

I have a query regarding the classification of a particular contractual arrangement as a leasing contract. Below is the example in question:

"Company A engages Company B to store goods in a warehouse. Company B is responsible for receiving, storing, managing, and dispatching these goods. The monthly payment to Company B is determined based on the number of goods stored in the warehouse."

The contract specifies that the warehouse is leased by Company A. Our intention is to recognize the lease liability based on our projections of the number of goods to be stored. Any difference between the projected and actual storage will be expensed and considered as part of the service provided by Company B.

Could you please advise on whether this arrangement meets the definition of a leasing contract? If not, what modifications should be made to align it more closely with a leasing contract?

Thank you for your assistance.

[Marek Muc]

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