Identified asset

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Identified asset, a term from IFRS 16 Leases. Let’s see what it is all about….

An asset is identifiable if it either:

  1. Is separable, i.e., is capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so; or
  2. Arises from binding arrangements (including rights from contracts or other legal rights), regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

Note: Even though the definition given requires an intangible asset to be identifiable to distinguish it from goodwill, any goodwill recognised in an … Read more


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Leases explained along defined terms to obtain a quick overview. An overview is provided here.

Definitions from IFRS 16 Leases are:

IFRS 16 Leases: A contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration.

Lease payments – Payments made by a lessee to a lessor relating to the right to use an underlying asset during the lease term, comprising the following: Lease

  1. fixed payments (including in-substance fixed payments), less any lease incentives;
  2. variable lease payments that depend on an index or a rate;
  3. the exercise price of a purchase option if the lessee is reasonably certain to exercise that option;
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IFRS 16 Assets of low value

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IFRS 16 Leases introduced the term ‘Assets of low value’. IFRS 16 does not provide much guidance to assess what ‘low value’ means. There is no definition. The value referred to as ‘low value’ is the value of the asset when it was new, regardless of the age of the asset at inception of the lease.

The Basis for Conclusions of IFRS 16 provided the following guidance: Assets of low value

‘The IASB intended the exemption to apply to leases for which the underlying asset, when new, is of low-value (such as leases of tables and personal computers, small items of office furniture and telephones). At the time of reaching decisions about the exemption in 2015, the Read more