IFRS 16 Leases

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March 4, 2018 at 10:25 am #440033
vikulchik07
Participant
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Hello!
Could you help me with Leases, please?

My question regarding Chapter 20, Exapmle 4.
Why do we use PV (without any direct cost and incentives) when we start to calculate Interest and Liability?

Thanks in advance!
March 4, 2018 at 8:58 pm #440216
P2-D2
Keymaster
- Topics: 4
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Hi,

It is because the direct costs and incentives are cash entries and do not impact the value of the liability.

Thanks
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