Right of Use: Difference between revisions
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imported>Doug Williamson (Create page. Sources: ROU page and The Treasurer, Feb 2018, p37.) |
imported>Doug Williamson (Remove surplus link.) |
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Latest revision as of 17:32, 29 January 2022
Lease accounting - International Financial Reporting Standard 16 (IFRS 16).
(ROU).
Right of Use is a key concept in lease accounting.
Operating lessees must report an ROU asset
- "The major change for lessees [under IFRS 16] is that all operating leases must be reported on balance sheet through the creation of a right of use (ROU) asset and corresponding liability.
- The ROU asset is calculated based on the present value of future rental cash flows discounted at the rate implicit in the lease or, if this is not available, the incremental borrowing rate, and depreciated over the remaining lease term."
- The Treasurer magazine, September/October 2017, p40 - Paul Lippitt and Armaghan Haq.
