Lease ifrs16 in the light of the covid-19 uncertainty
Lease IFRS 16 IFRS.org issued an advisory on how to account for leases due to modifications arising out of COVID 19.Â
The coronavirus 2019 (COVlD–19) pandemic is affecting economic and financial markets, and virtually all industries are facing challenges associated with the economic conditions resulting from efforts to address it. For example, many entities in the travel, hospitality, leisure, and retail industries have seen sharp declines in revenues due to regulatory and organisational mandates (e.g. “shelter in place mandates, school closures) and voluntary changes in consumer behaviour (e.g. “social distancing").
As the pandemic increases in both magnitude and duration, entities are experiencing conditions oftenassociated with a general economic downturn. This includes, but is not limited to, financial market volatility and erosion, deteriorating credit, liquidity concerns, further increases in government intervention,increasing  unemployment, broad declines in consumer discretionary spending, increasing inventory levels,reductions in production because of decreased demand, layoffs and furloughs, and other restructuringactivities. The continuation of these circumstances could result in an even broader economic downturnwhich could have a prolonged negative impact on an entity's financial results.
 As a result of the COVlD–19 pandemic, certain entities are experiencing significantly reduced consumer traffic inretail stores and shopping areas, or indefinite closures due to quarantine measures and other governmentdirectives.
lmpairments to right–of use (ROU) assets could occur as a result of business closures, supply chaindisruption, or other consequences of the pandemic that negatively affect the future cash flows expectedto be derived from the use of the underlying asset. ROU assets measured applying a cost model arecarried at cost less any accumulated depreciation and any impairment losses (and adjusted for specific remeasurement of the lease liability). lmpairment is assessed applying the requirements in lAS 36.
Lessees in some affected markets are receiving rent abatements or other economic incentives.
A full text issued by IFRS.org on IFRS 16 leases can be read here
Take the free quiz on IFRS 16 Leases here to asses your knowledge
From the blog
View allOther popular blogs
Follow these links to help you prepare for the ACCA exams
Follow these blogs to stay updated on IFRS
Use these formats for day to day operations
- Account closure format
- Insurance claim letter format
- Transfer certification application format
- Resignation acceptance letter format
- School leaving certificate format
- Letter of experience insurance
- Insurance cancellation letter format
- format for Thank you email after an interview
- application for teaching job
- ACCA PER examples
- Leave application for office
- Marketing manager cover letter
- Nursing job cover letter
- Leave letter to class teacher
- leave letter in hindi for fever
- Leave letter for stomach pain
- Leave application in hindi
- Relieving letter format
Link for blogs for various interview questions with answers
- Strategic interview questions
- Accounts payable interview questions
- IFRS interview questions
- CA Articleship interview questions
- AML and KYC interview questions
- Accounts receivable interview questions
- GST interview questions
- ESG Interview questions
- IFRS 17 interview questions
- Concentric Advisors interview questions
- Questions to ask at the end of an interview
- Business Analyst interview questions
- Interview outfits for women
- Why should we hire you question
Popular blogs
Leave application format
Crafting the perfect leave application for any scenario, from personal emergencies to medical leaves, often presents a challenge. To simplify this task, we've assembled an extensive index of leave application formats designed for various circumstances. Our collection is aimed at enhancing the clarity and professionalism of your leave requests. Dive into our index to discover the template that aligns with your specific needs, facilitating a smoother leave application journey.
List of Leave application formats
- Leave application for office
- Leave application for school
- Leave application for sick leave
- Leave application for marriage
- leave application for personal reasons
- Maternity leave application
- Leave application for sister marriage
- Casual leave application
- Leave application for 2 days
- Leave application for urgent work
- Application for sick leave to school
- One day leave application
- Half day leave application
- Leave application for fever
- Privilege leave
- Leave letter to school due to stomach pain
- How to write leave letter
Â
Leave a comment