Hello,
If you take back possession of a lease after a subleasing arrangement (classified as a finance lease) has ended early, presumably a RoU Asset will have to be re-recognised (and the net investment derecognised).
How would the value of the RoU be determined - usually its the PV of the future payments at recognition, would it just be the PV of the payments at the point in time where we re-recognise it?
IFRS 16 RoU after sublease ended
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Ketan Marwah
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Re: IFRS 16 RoU after sublease ended
Hi,
The intermediate lessor accounts for the head lease and the sub-lease as two different contracts, applying both the lessee and the lessor accounting requirements. I would simply reinstate ROU balance on the date as it would have had the asset not been subleased. NIL would on the other hand would follow the derecognition requirement of IFRS 9.
The intermediate lessor accounts for the head lease and the sub-lease as two different contracts, applying both the lessee and the lessor accounting requirements. I would simply reinstate ROU balance on the date as it would have had the asset not been subleased. NIL would on the other hand would follow the derecognition requirement of IFRS 9.
Senior Compliance & Reporting Manager
Ocean & Logistics Reporting & Accounting
Maersk Group
Ocean & Logistics Reporting & Accounting
Maersk Group