Page 28 - Finac1 Test 4 Slides

LEASES

Outcomes

• Understand the defined terms.

• Know the scope of IFRS 16.

• Understand the recognition exemptions.

• Identify a lease and the separate components of a lease.

• Determine the lease term.

• Recognise, measure, present and disclose leases in the financial statements of
lessees.

• Correctly classify leases as either operating or finance leases in the financial
statements of the lessor.

• Recognise, measure, present and disclose leases in the financial statements of
the lessor.

• Account for leases in the case of manufacturer and dealer lessors.

• Account for sale and leaseback transactions.

• Account for Value Added Taxation (VAT) and normal income tax implications.

28