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lease- substitution rights

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › lease- substitution rights

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • March 20, 2021 at 3:55 am #614809
    Jiya024
    Member
    • Topics: 168
    • Replies: 56
    • ☆☆☆

    Dear sir,

    If a lessor has a right to substitute an asset given to the lessee, with an alternative asset, but that which is IDENTICAL to one previously given. in such a situation will the contract contain a lease?

    i understand that if the asset is substituted with a similar asset then the contract won’t contain a lease.

    Many thanks!

    March 21, 2021 at 10:23 am #614871
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3411
    • ☆☆☆☆☆

    The question that I would ask is whether the asset is an emergency replacement – may still be a lease – I think it’s that’s kind of criteria

    KPMG have a discussion if you bing ‘substitution rights ifrs 16’

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