Hello Silva, thanks for your article on IFRS 16, very helpful. Looking for some information about subletting and hoped you could do something about it. Look at how you would consider a 7-year sublease if the head rent is valid for 10 years. Wants to be sublet for the remaining 10 years, but not able, still 3 years ago. In a 7-year sublease (rental-financing), are THE ROU assets or part of it fully extinguished? Thank you Hello Silvia, I hope you find this massage good I have requests regarding IFRS 16, Our company has signed the land lease with the government for (50) years expandable, but without option to purchase the annual rent is ($1.3 million). The questions are: 1- Does IFRS 16 apply to the lease? If so, 2- If we consider that there are no ifrs, how are we going to charge them according to IFRS16? Your comments are highly appreciated Greetings, Hello, What happens if the incentive to lease higher than ROU and ROU-Asset assets is negative? There could be many scenarios, such as the early termination of one of the parties. B or a reciprocal agreement to create higher leasing incentives. This should not be allowed with common sense, otherwise companies can actually make profits in leasing, but I came across the situation when it does. Enjoy your thoughts and thank in advance. If you make accounting decisions about how to consider a unterlease, some need to be considered. A sublease occurs when a taker decides to lease an asset already leased to a third party.
The third party must have the right to control the use of the underlying asset for a specified period of time and thus meet the definition of a lease. In this case, the original tenant, often designated as principal tenant or intermediate tenant, must determine how this change should be taken into account. A sublease is a transaction in which a tenant leases an asset from a lessor (executive lease) and the taker then hands over the same asset (as an intermediary tenant) to another taker (subtenant). Are you able to account for subleases on the corresponding leasing expenses (depreciation)? Hello Silvia, thanks for such a detailed explanation. Should the legal costs of a lease be considered IDCs with respect to the initial direct costs (CDI) for the policyholder? or there are cases where the procedural costs incurred are not activated, but charged. Hello, Sylvia, I hope you`re okay. And if we just started a lease with our landlord for 12 months, but they gave us a free month, for a total of 13 months for the price of 12 months. Will it continue to be included in accordance with IFRS 16? If so, what will be the accounting position? Because we pay in two payments. first payment from the start (50%) and stay (50%) in the middle of our contract. I do not understand interest charges because there is no interest rate in this agreement.