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Dear sir,
1. The two optional exemptions (short term lease and low value asset) are same for Lessee and Lessor? I could not get it, so I assumed these exemptions for Lessee only.
2. In operating lease, the lessee needs to recognise the right-of-use asset and needs to depreciate that asset. At the same time, the asset is in Lessor books and he also needs to depreciate the same asset. Am I right as per the new standard of IFRS 16?
Thanks and regards,
1. I believe that it’s the lessee’s choice of whether or not to take advantage of the the exemptions
2. No – it’s a finance lease where the lessee has the right-of-use, not an operating lease
If it’s an operating lease, the lessee crucially does OT have right-of-use and therefore depreciation is charged on that asset by the lessor
OK?
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