- This topic has 3 replies, 2 voices, and was last updated 2 years ago by
Stephen Widberg.
Stephen Widberg.-
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Hong
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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?
Stephen Widberg
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1. Assume don’t recognise until 2020.
2. Probably not – are you looking at a past ACCA question?
Hong
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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.
Stephen Widberg
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1. Past event = when you occupy the building not when you sign the contract
2. Financial guarantees = would be at FV
Hong
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