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IFRS 16: Initial direct cost incurred by lessor (Finance lease)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 16: Initial direct cost incurred by lessor (Finance lease)

  • This topic has 2 replies, 2 voices, and was last updated 6 years ago by AvatarSon.
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  • September 1, 2019 at 10:07 am #544019
    AvatarSon
    Participant
    • Topics: 7
    • Replies: 5
    • ☆

    Dear teacher and everyone,

    I have one question relates to intial direct cost incurred by lessor under IFRS 16. Do we capitalize intial direct cost into the finance lease receivable at initial recognition? Subsequently, do we amortize initial direct cost over lease term?

    Please help to answer and provide source of answer if any.

    Thanks all!

    September 3, 2019 at 9:16 am #544416
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    Yes, as it is directly attributable then it would be capitalised.

    Thanks

    September 3, 2019 at 1:20 pm #544475
    AvatarSon
    Participant
    • Topics: 7
    • Replies: 5
    • ☆

    Thanks for your help!

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  • The topic ‘IFRS 16: Initial direct cost incurred by lessor (Finance lease)’ is closed to new replies.