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Trying to figure out the benefits for the investor of IFRS 16 re a question I was doing.
Did entities with ‘off-balance sheet financing’ recognise the asset without recognising the lease liability before IFRS 16? Or neither?
Pre IFRS 16, the lessee only capitalised leases where the lease term was for the majority of asset life. So most office leases were not capitalised. Therefore the related lease debt was not on the balance sheet.