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Hi Sir,
1. Under IFRS 16, we have to recognize ROUA and Lease Liabilities. If my tenancy agreement and financial year end was ended at 31 December 2019, if a new tenancy agreement was signed immediately in subsequent year for a period of 3 years (01.01.2020 to 31.12.2020) should we recognize the new agreement during 31 December 2019?2. Any exemption to not recognize financial guarantee contract at fair value?
1. Assume don’t recognise until 2020.
2. Probably not – are you looking at a past ACCA question?
Hi Stephen,
Thanks for replying me.
1.Refer to the first question above, as we had been entered into agreement, which mean that there is a present obligation (legal or constructive) has arisen as a result of a past event (the obligating event). In addition, there is probable cash outflow and the value is measure reliable. Why should not we recognize as a liability?2. Nope.
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