In this video, we will discuss a quick summary of IFRS 16 Leases and the reasons why the shift from IAS 17 is necessary.
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[ Ссылка ]
Timestamps:
00:00 Introduction
00:44 The underlying reason
00:53 IAS 17: Operating leases under the old standard
01:09 IAS 17: Sample journal entries
01:28 IAS 17: Summary of financial statements impact
02:00 IFRS 16 Introduction
02:15 Discounting of the lease liability under IFRS 16
02:44 The Right-of-Use Asset
03:03 IFRS 16: Journal entries for the rent payments
03:10 IFRS 16: Journal entries for the interest expense
03:25 IFRS 16: Journal entries for amortization of the ROU Asset
03:38 Summary of impact on the Lease Liability and ROU Asset
04:00 IFRS 16: Summary of financial statements impact
04:24 A different view on IFRS 16
04:50 Final Thoughts
05:07 Outro
OTHER TERMS USED IN THE VIDEO
Incremental Borrowing Rate:
The rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
Operating Leases:
A contract wherein the owner permits the user to use an asset for a particular period shorter than the economic life of the asset without any transfer of ownership rights.
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