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”An asset held by an entity as a right-of-use asset under IFRS16 and leased out under an operating lease is treated as an investment property”
Can anyone please clarify this?Hi,
Yes, this is when a lessor leases out its property as an operating lease, so still has the risks and rewards of ownership and therefore will still recognise the property in its financial statements. IP is property held to earn rentals, and so here as it is being held to be leased out under an operating lease, earning rentals, then it will be IP.
I doubt that you would see this in FR as lessor accounting is not examined until SBR.
Thanks
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