Page 46 - FAC4861_3 Unisa Test 4 slides
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LEASES
Recognition exemptions (IFRS 16.5-8)
• A lessee may elect to not apply the lease requirements
as set out in lease recognition to:
• Short-term leases (lease term ≤ 12 months); and
• Leases for which the underlying assets are low-value assets.
• Assets that are highly dependent, highly interrelated with
other assets will not qualify as low-value assets.
• Low value = IFRS 16.BC100 states that assets when new with
a value of $5 000 would be considered low-value assets.
Examples include personal computers, small items of office
furniture and telephones.
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