Background of Lease – Updates
Its specifies how a company will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value.
IFRS 16 was issued in January 2016 and applies to annual reporting periods beginning on or after 1 January 2019.
Valuer or Surveyor’s role:
– Quantifying the interest rate implicit in the lease for lease contracts with variable options
– Estimating of incremental borrowing rate for companies without existing external debt
– Real estate market research to support management’s estimation
Full document can be downloaded here.