IFRS 16 ‘Leases’ brings along with it the concept of a ‘right-of-use asset’.
A right-of-use asset is an asset that represents a lessee’s right to use an underlying asset for the lease term.
All lessees entering into long-term leases for assets of a value exceeding $5,000 are required to show a right-of-use asset on their balance sheet, under IFRS 16.
During the seminar, we’ll focus on right-of-use assets, tackling:
• When to recognise them.
• How to measure them at contract inception, and after that.
• How to treat them when there is a sublease.
• How to treat them when contract payments are variable.
• How to treat them when contract terms change altogether.
• How to assess them for impairment.
• How to present them in the financial report.