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IFRS 16: Leases - Coggle Diagram

- - - - para. 9 - Lease idenitification
        4 elements must be present
        
        Identified Asset para B13
        
        implicit
        use powergrid
        
        explicit
        renting of floor 4 &5
        
        Substantive rights
        (AVIS car hire) - NOT IFRS 16
        
        enjoy EB from exercising right
        (AVIS still get money from renting car to someone else)
        
        replace asset
        (AVIs can get another car)
        
        N/A if substantive right is for certain period. Needs to be throughout the lease term
        
        N/A if asset is replaced while being maintained or repaired
        (AVIS car not rented out but replaced because of service maintainance)
        
        Portions of Assets
        
        Portion must be PHYSICALLY distinct
        (a floor of a building)
        
        Can tell apart from other parts of asset
        
        OR can't tell apart - MUST have right to receive ALL capacity in building
        (storage of gas with separate components)
        
        Right to control use
        
        Obtain substantially ALL EB (para B21)
        
        Restrictive rights? para B22
        
        Only use within the scope of contract
        ex. motor car mileage
        
        Control = Right to EB + Direct use + prevent anyone else from using
        
        When does lessee have right to use? para B24
        
        Direct how & purpose
        
        Right to operate (without interference of supplier)
        lessee designed asset predetermined use
        
        Protective Rights para B30
        
        Lease & non-Lease components
        
        Lease component
        meet definition
        use IFRS 16
        
        Distinct
        
        Stand alone price
        
        NON-Lease component
        Expense according to other standard
        
        Practical expedient
        
        account for lease & non-lease compenent as 1
- - - - lease liability
        
        PV of outstanding pmts @ commence date
        
        use incremental borrowing rate
        
        EXCL. DAY ONE PMTS (deposit)
      - Right-of-use asset
        
        Lease liabilitly + direct costs
    - - lease liability
        
        Interest Exp
      - right-of-use
        
        Depreciation
  - - - Extension = 2 years
        :check: Period = 7yrs (incl)
        :green_cross: = 5yrs (excl)
      - termination 3 years
        :check: = 7 (incl)
        :green_cross: = 5 (excl)