Hello All,
As per IFRS 16, the company has to disaggregate the assets of PPE subject to operating lease and not subject to operating lease.
Operating leases (Text from the standard)
95
For items of property, plant and equipment subject to an operating lease, a lessor shall apply the disclosure requirements of IAS 16. In applying the disclosure requirements in IAS 16, a lessor shall disaggregate each class of property, plant and equipment into assets subject to operating leases and assets not subject to operating leases. Accordingly, a lessor shall provide the disclosures required by IAS 16 for assets subject to an operating lease (by class of underlying asset) separately from owned assets held and used by the lessor.
Do we have to disclose separately the portion of right of use asset as the lessee has entered into sublease of the building which is taken on lease and for which right of use and lease liability is recognised?
Thanks
Anuradha
Disclosure of sublease
Re: Disclosure of sublease
did you find any requirement in IFRS 16 relating to subleased RoU assets?
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Re: Disclosure of sublease
No, i didnt find anything particularly for subleased RoU. I just found the below
Operating leases (Text from the standard)
95
For items of property, plant and equipment subject to an operating lease, a lessor shall apply the disclosure requirements of IAS 16. In applying the disclosure requirements in IAS 16, a lessor shall disaggregate each class of property, plant and equipment into assets subject to operating leases and assets not subject to operating leases. Accordingly, a lessor shall provide the disclosures required by IAS 16 for assets subject to an operating lease (by class of underlying asset) separately from owned assets held and used by the lessor.
Operating leases (Text from the standard)
95
For items of property, plant and equipment subject to an operating lease, a lessor shall apply the disclosure requirements of IAS 16. In applying the disclosure requirements in IAS 16, a lessor shall disaggregate each class of property, plant and equipment into assets subject to operating leases and assets not subject to operating leases. Accordingly, a lessor shall provide the disclosures required by IAS 16 for assets subject to an operating lease (by class of underlying asset) separately from owned assets held and used by the lessor.
Re: Disclosure of sublease
this doesn't apply to RoU assets in my opinion
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- Posts: 25
- Joined: 28 Apr 2022, 11:47
Re: Disclosure of sublease
Why is it not applicable to RoU assets? it is shown in PPE right.
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- Posts: 25
- Joined: 28 Apr 2022, 11:47
Re: Disclosure of sublease
Hi Marek,
Do you still think its not applicable for RoU assets and Why?
Do you still think its not applicable for RoU assets and Why?
Re: Disclosure of sublease
because RoU assets and PP&E are different assets, though you may need to provide this split for RoU assets under IFRS 16.92