IFRS-16- Advance rent

[razashahaca]

Hi gurus,

My question is related to advance rent paid to landlords in
telecommunications sector for towers, how this fall under ifrs16?

While we are paying rent in advance . can a prepayment amount having rental agreement be treated as lease?



Regards

Ali

[Marek Muc]

Hi, when you pay in advance, you add this payment to the initial value of the right of use asset which is recognised at the commencement date.

See this example where you can see how an upfront payment is treated.