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IFRS 16 Leases

VVictoria8y ago
Hello! I have a question about the example from the first video about Leases. I don't understand why we have rental expense in the firs year (we recognise it in P/L). The first year is free from payment. Thanks in advance!
P2-D2P2-D2Tutor8y ago#1
Hi, It is because of the matching concept. If we are using the asset but not paying rent a rental expense will still need to be recognised. Thanks
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