Hey,
Does anywea in IFRS 16 allowed to offset lease liability and receivable (lessee).I have a client who has a receivable with alessor and he would like to offset it with the lease liability?
You could also direct/share with me a good reading material to that effect
offsetting receivable and lease liability
Re: offsetting receivable and lease liability
Will it be settled net, ie will they not pay rent until the receivable it utilised against it?
Re: offsetting receivable and lease liability
IFRS 16 doesn't have any specific requirements with regards to offsetting, so general requirements apply:
https://ifrscommunity.com/knowledge-bas ... struments/
https://ifrscommunity.com/knowledge-bas ... struments/
Re: offsetting receivable and lease liability
What @JRSB said, it depends on whether there is a legal enforceable right to settle. Usually any receivables / prepayments on date of adoption of IFRS 16 form part of right-of-use asset as opposed to being netted off against lease liability.
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Re: offsetting receivable and lease liability
and how did the receivable from lessor arise? is it a prepayment for future periods for the same lease?
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- Posts: 6
- Joined: 16 Oct 2020, 06:48
Re: offsetting receivable and lease liability
no its for a different transction. its didnt arise out of a lease
Re: offsetting receivable and lease liability
ok then general offsetting criteria apply (see the link in my previous post)