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My Dear Tutor, I just read IFRS 16 and saw that we have to identify ”the right of use to control the asset” there are two exceptions which less than 1 year or 12 months and low value asset.
if we identify the right of use to control asset, will calculation method be the same as the previous one?
Also coming to sales and lease back, will its calculation be the same as prior one?
I see the only change is to find out it is lease or not
.Most importantly, operating lease no longer exist, but if there were the case, say for instance, asset’s economic life is 6 years but its right of use to control the asset does not cover 6 years say for example 4 years transferred to opposite side then what will happen in this case?it looks like operating lease but will we still continue to recognize it under non-current asset as finance leased asset is not it?“if we identify the right of use to control asset, will calculation method be the same as the previous one?”
Yes
“Also coming to sales and lease back, will its calculation be the same as prior one?”
Yes
Does it not say in the IFRS something about “substantially the whole of its useful life” and I don’t believe that 4 years out of 6 qualifies as “substantially the whole”
Do you?
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