How to Calculate the IFRS 16 Right of Use (ROU) Asset
IFRS 16 requires the recognition of a “right of use” (ROU) asset on the balance sheet for ALL leases undertaken by a business. This ROU asset is recorded under the …
How to Use the Excel PV Function for IFRS 16 Calculations
The Excel PV function is the easiest way to make your IFRS 16 calculations more simple and efficient. By using the PV function, we are able to calculate the present …
What is IFRS 16 – The New Leases Standard
IFRS 16 became effective for all businesses with a financial reporting period beginning on, or after, the 1st January 2019.
What are the Journal Entries for IFRS 16?
Under IFRS 16, the main items that will appear on the balance sheet are a “right of use asset” and a lease liability. However, it is also important to understand how to calculate the related interest payments for the lease at each payment interval as well as the depreciation amounts.
What Is a Break Clause (Leases)
It is common practice for lease agreements to contain a break clause, especially when the lease is in relation to the rental of a property (a tenancy agreement).