Hey guys, i would appreciate your help, hence i dont really know sm1 with know how about this topic.
my case study is about deutsche telekom AG ( i suppose US version would be AT&T?)
a) Using the information in the notes, but in your own words, describe what are the key accounting issues (i.e., recognition and measurement issues) related to your company’s leases?
-> i dont undestand that question at all, does anyone have a idea how i could answer it?
b) Briefly describe the possible impacts of the currently increasing interest rates on the most relevant lease-related items in the balance sheet, income statement and the statement of cash flows.
-> my idea would be that higher inflation -> higher intrest rates -> in higher incremental borrowing rates being determined for new leases = lower values on the balance sheets? am i thinking right? but what would happen with the items that are already on there balance sheet? would they bei re-evalueted with the higher borrowing rates aswell or not? what effects does it have on them.
c) Referring to your analyses, design one (made-up) example for IFRS 16 to explain how specific aspects of the company’s business model are accounted for under the relevant IFRS.
IFRS 16 Questions (help for case study pls)
Re: IFRS 16 Questions (help for case study pls)
a) read the relevant notes about leases in financial statements and see what the management discusses there
b) re. initial recognition - yes, re. existing leases, it depends whether the contract includes any indexation clause. Read more: https://ifrscommunity.com/knowledge-bas ... -liability
c) not sure what is meant here
b) re. initial recognition - yes, re. existing leases, it depends whether the contract includes any indexation clause. Read more: https://ifrscommunity.com/knowledge-bas ... -liability
c) not sure what is meant here