What do you need to know when choosing between leasing an asset or including a lease-purchase (HP) as a way to get the item? What are the main differences between leasing and leasing? Hello Silvia, thanks for this article! It`s kind of amazing for me. I remember attending one of the seminars in my country. The speaker was a senior auditor at KPMG. He raised this issue, and at the end I ask him whether or not the treatment of rental offices is influenced by that IFRS standard.16 He was a little hesitant, but he eventually confirmed that the rental office had to be out of reach because there is no way to buy the office. But I think that`s wrong, furthermore, after reading articles, I`m pretty sure the rental office should be registered in accordance with IFRS 16. But there are still some questions that leave me perplexed: 1. In the financial explanations, we must share the long-term commitment. As a general rule, the lease is described here. Shows how long until the contract expires and how much the remaining value of the contract to be paid for. In that case, we don`t need it anymore? First of all, we have already paid the long-term rent. 2.
Even in the lease does not usually mention interest. Not like a car leasing contract. How do I determine the discount rate? IFRS 16 introduces a single accounting model for leasing by removing the distinction between operating leasing and leasing, which means that entities that establish ifr accounts may have to change the way their leases are accounted for. What about rentals? is it outdated or within the scope of IFRS 16? For IFRS 16, a residual value is only relevant if an entity has the option to purchase equipment under a lease agreement at a price agreed in advance. 2) As this is a business-to-business transaction, there will be no implied interest rate included in the lease. In this case, what similar incremental withholding rate should be used? There are no loans for the business, so I cannot use the comparison to determine incremental credit rates. Can you indicate the price to use? Suppose a company owns and operates a power plant in which all electricity is sold to the government (customer) through a 20-year power purchase agreement. The lessor recognizes the asset in its balance sheet, which is depreciated over its usefulness. The lessor will record the cost of monthly payments, but with the implementation of IFRS 16, the lessor will also record the assets and liabilities in its accounts.