IFRS 16 - Leases

Chapter 4 DAIF

Two parties

Lessor

Lessee

Lessor

ငွေထုတ်ပေးမယ်

ပစ္စည်းပေးသုံးမယ်

အတိုးပြန်ယူမယ်

e.g. bank

Lessee

ပစ္စည်းအသုံးပြုခွင့်ရမယ်

အတိုးပြန်ဆပ်ရမယ်

ငွေပြန်ပေးဆပ်ရမယ်

Asset က သူ့ ပစ္စည်းဖြစ်သွားမယ်

Depreciated လုပ်ရမယ်

Liability ကို စာရင်းသွင်းရမယ်

Lease

Right of the lease

Control identified asset

For a period of time

In exchange for consideration

Lease term

Non-cancellable period of lease

Options

To extend the lease is reasonably certain - Exercise

To terminate the lease - Not exercise

Right-of-use

Lessee has the right

To use an identified asset

For the lease term

Accounting for leases

Recognition of Lessee
PPE or Right-of-use Assets DR
Lease liability CR

Right of use asset
Initial measurement of the lease liability
+ any lease payments made
- any lease incentives received

Cost model
Cost - accumulated depreciation - accumulated impairment

Depreciation
If lease သက်တမ်းကုန်ဆုံးချိန် ownership transfer ဖြစ်မှာဆိုရင် useful life သုံး
If not asset’s useful life နဲ့ lease term စောတာယူ

Leasing

NCA

Flexible financing source

Right to control

Lease liability

အတိုး
DR Finance costs
CR Lease liability

Lease payments
DR Lease liability
CR Bank

SPL မှာ

Depreciation

Interest on lease liability

SFP မှာ

Non-current assets
Carrying amount (Cost model)
Cost or revaluation (revaluation model) minus Accumulated depreciation

Liabilities
Lease liability
Non-current
Current

Effects of leasing

Gearing increased D/(D+E)

Higher non-current liabilities

Asset turnover reduced

Revenue/NCA

Non-current assets increased

Conclusion

Short-term lease
12 months or less

Lease for low value assets

Personal computers and tablets
Small items of office furniture and telephones