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Dear tutor;
due to covid i have some un-updated “old material” and ED/2019/5 is not explained.
I tried to search on the net, but i didn’t understand the ED (oh surprise!), moreover i get more confused about leases…Could you please make a brief explanation of this ED?
Thanks in advance;
carlesIn practice there is some doubt about the treatment of leases for DT because some companies interpret an exemption in the DT IAS too literally. You are confused because everything on the net is explained in very legalistic terms.
The outcome of the ED is to require companies to account for DT on leases.
So, assume tax rate is 20%, Lease Right of Use Asset is 100 and Lease liability is 120.
DT asset will be 20% (100-120) = 4
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