IFRS 16 Leases Booklet

This Booklet sets out the principles for the recognition, measurement, presentation and disclosure of leases.

Introduction
Leases capitalisation on the balance sheet
Recognition of a Lease
Identifying a lease

When is an asset identified? – Some explanations
Identified asset
Right to control   /  IFRS 16 – Right to use  / Right to direct the use
Control the use – Right to obtain economic benefits from use
Decision-making rights – How and for what purpose is the asset used?
Does a contract include a lease? – A decision tree
Separation of components of a contract
Combine separate lease contract
Portions of assets

Lessee-Measurement
Impairment test before and after IFRS 16 Leases
Treatment of lease liabilities in impairment of a Cash Generating Unit (CGU)
Impairment of right-to-use assets
Lease liability
Sale and leaseback accounting
Lease cases:
Calculation examples:
Case 1
Case 2