Page 46 - FAC4861_3 Unisa Test 4 slides
P. 46

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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