Chapter 11 - IFRS 16 Leases Flashcards
1
Q
What is a lease?
A
Contract that conveys the right to use an underlying asset for a period of time in exchange for consideration
2
Q
What is the lessor?
A
Entity that provides the right-of-use asset and, in exchange, receives consideration
3
Q
What is the lessee?
A
Entity that obtains use of the right-of-use asset and, in exchange, transfers consideration
4
Q
What is a right-of-use asset?
A
Represents the lessee’s rights to use an underlying asset over the lease term
5
Q
What does the lease term comprise?
A
Non-cancellable periods
Periods covered by an option to extend the lease if reasonably certain to be exercised
Periods covered by an option to terminate the lease if reasonably certain not to be exercised
