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Please let me know if following mentioned info is correct or not
Lease = less than 12 months
IFRS 16 has Optional Exemption for short term leases. No asset/liab ? Lease exp dr. ; Cash cr.
BUT, this Option opted should be consistent for each class of asset.
Twist, Lease taken at Year End. So:-
1. If exemption taken = No impact on CY FS. No asset no liab and also no P/L impact as even though lease taken at year end, Accrual concept.
2. If exemption not taken = recog RTU asset and Lease Liab. No P/L impact.Hello Tutor,
can you please explain the ‘twist’ part.
Wouldn’t we have to record the lease expense according to the accrual concept?
If the lease commences very shortly before the y/e there will be no current year expense. If paid in advance there would be prepayment.
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