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Determining Direct Costs Direct costs are incremental costs that are incurred in the process of obtaining the lease. Other costs incurred irrespectively of whether the lease contract is entered into or not are not considered to be initial direct costs. Direct costs incurred at the initial stage of the lease are accounted for as part of the right of use asset. An example of a... Read More

Date: Wednesday 26th February 2020 Author: Paul Zammit Over the past months, pronouncements and guidance in relation to the accounting for cryptographic assets have been released. Cryptographic assets include the following broad categories: Cryptocurrencies, such as Bitcoin, which could be held by an entity on its own behalf or on behalf of its customers. Other cryptographic assets. Other cryptographic assets include: Security tokens, which are... Read More

As discussed in a previous article, under IFRS 16 ‘Leases’, the lessee capitalises lease transactions as a right-of-use asset and a corresponding lease liability, unless the transactions relate to short term leases or low value leases, in which case the lease is expensed. The next question to answer is: how do we measure the right-of-use asset and the lease liability? This depends largely on the... Read More