Jeden Monat erstellt Carsten Ernst, Geschäftsführender Gesellschafter bei der WirtschaftsTreuhand, einen Beitrag zu Themen der internationalen Rechnungslegung. Hier finden Sie den Beitrag für März 2021.
IFRS 16: Presentation, classification and notes disclosures
as announced in our January newsletter, we are addressing issues surrounding IFRS 16 Leasing in a short newsletter series. The previous newsletters have dealt with the following topics:
– January 2021: “Has the plane landed – Introduction to our IFRS 16 series”
– February 2021: “IFRS 16: Scope and Exemptions”
– March 2021: “IFRS 16: Identifying a lease”
– April 2021: “IFRS 16: Determining the lease term”
– May 2021: “IFRS 16: Recognition and initial measurement”
– June 2021: “IFRS 16: Subsequent measurement”
With today’s newsletter, we conclude our series on IFRS 16. In this final newsletter, we focus on presentation, classification and notes disclosures.
According to IFRS 16.47 a lessee shall
(a) either present in the statement of financial position, or disclose in the notes: right-of-use as-sets separately from other assets.17 If a lessee does not present right-of-use assets separately in the statement of financial position, the lessee shall:
i. include right-of-use assets within the same line item as that within which the corresponding underlying assets would be presented if they were owned; and
ii. disclose which line items in the statement of financial position include those right-of-use as-sets
(b) lease liabilities separately from other liabilities in the statement of financial position or disc-lose in the notes. If the lessee does not present lease liabilities separately in the statement of financial position, the lessee shall disclose which line items in the statement of financial position include those liabilities.
Under IFRS 16.49 in conjunction with IAS 1.82(b), the interest expense is presented in the statement of profit or loss18 as components of finance costs; conversely, the depreciation charge reduces operating earnings.19 Mandatory (notes) disclosures are stipulated in IFRS 16.53(a) and (b).
If a lessee makes use of the election in IFRS 16.6 for short-term leases or leases of low-value assets, it must disclose that fact under IFRS 16.60. The related expenses must be disclosed in accordance with IFRS 16.53(c) and (d).
Special points regarding sale-and-leaseback transactions
These are subject to additional accounting requirements under IFRS 16.98-103. The first step is to determine whether the transfer of the ‘leased back’ asset meets the requirements of a sale within the meaning of IFRS 15. If it does, the transaction is accounted for according to IFRS 16.100-102. If not, it is accounted for according to IFRS 16.103. In such cases, in an economic analysis, there is nothing but a (straightforward) loan. As a result, this cannot lead to derecognition of the asset, nor to the recognition of revenue. Instead, any such transaction is not recognised in profit or loss and merely leads to recognition of a financial liability in the amount of the proceeds.
Should you ever lose track of the big picture, my colleagues and I will be happy to help and guide you safely through the IFRS accounting jungle. Contact me by email at firstname.lastname@example.org