IFRS 16 OR IAS 16???
Posted: 22 Aug 2021, 09:22
I would like to take your opinion on a case ..
A Company has signed a contract for the supply and use of an Innovative equipment. as per the contract;
1) 3 mm down-payment
2) annual EMI of 1 million from 1- 8 years (Total 10 Million under the deal)
Alternatively The machine cost is 9 million and annual charge of 500K if on purchase option, wherein the 9 Million has to pay upfront- [These rates were available as part of the contract]. The company opted for the first option..
The ownership gets transferred once all payments settled.. Is it a lease and will IFRS 16 apply, If not please can you share your inferences in this case..
A Company has signed a contract for the supply and use of an Innovative equipment. as per the contract;
1) 3 mm down-payment
2) annual EMI of 1 million from 1- 8 years (Total 10 Million under the deal)
Alternatively The machine cost is 9 million and annual charge of 500K if on purchase option, wherein the 9 Million has to pay upfront- [These rates were available as part of the contract]. The company opted for the first option..
The ownership gets transferred once all payments settled.. Is it a lease and will IFRS 16 apply, If not please can you share your inferences in this case..
