AASB 16 Check – Have you considered these questions?
AASB 16 Check – Have you considered these questions?
Our series, AASB 16 Check, responds to the common questions we are hearing on the application of AASB 16 Leases. Discover the tips and nuances to consider when transitioning to and applying the standard going forward.
The AASB 16 Leases application date is now past, and is here for 31 December 2019 year-ends onward. This standard brings a whole new approach to accounting for leases. Your application of the standard should consider a range of different issues around identification of leases, recognition and measurement, disclosures, transition and flow-on impacts to other standards.
As you prepare to comply with the leases accounting standard, we share our perspectives on the common questions we hear.
What lease payments are included when calculating the FVLCOD of a CGU?
How are retrospective COVID-19 rent reliefs recognised?
What term is used for allocating consideration?
How do multiple index-dependent lease payments vary?
Are ECLs recognised on sub-lease receivables?
Are outgoings recognised on balance sheet?
Must a not-for-profit fair value ROU assets?
Can you capitalise depreciation and interest expense?
What is the tax effect accounting impact?
Any impacts on lessees’ cash flow statements?
Are lease payments linked to CPI estimated?
Is there any impact for a sub-lessor?
Embedded leases – immunity for lessors?
Should you recognise short-term or low value leases on your balance sheet?
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