Page 105 - SBR Integrated Workbook STUDENT S18-J19
P. 105
Leases
Example 3
Lessee accounting – subsequent treatment
Following on from the previous example, what further entries will Oryx
post in the year 31 December 20X1 in respect of the lease?
2.4 Separating components
A contract may contain a lease component and a non-lease component.
Unless an entity chooses otherwise, IFRS 16 specifies that the consideration in the
contract should be allocated to each component based on standalone selling prices.
2.5 Reassessing the lease liability
If changes to lease payments occur then the lease liability must be recalculated and
its carrying amount adjusted.
A corresponding adjustment is posted against the carrying amount of the right-of-use
asset.
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