01 Nov 2018 1 min read
IFRS 16 must first be applied to accounting periods beginning on or after 1 January 2019, including interim periods beginning on or after that date. The application of IFRS 16 to those interim periods will broadly follow the requirements of IFRS 16 except in one key respect.
IFRS 16 requires a variable lease payment, provided it is not in-substance fixed or based on an index or rate, to be recognised in profit or loss in the period in which the triggering event or condition occurs. Therefore, you might assume that the same would apply in interim periods. In other words, a variable lease payment would only be recognised in the interim period in which the event that crystallises the payment occurs.
However, IAS 34.B7 requires a variable lease payment to be recognised if it is expected that the event will occur before the end of the current annual reporting period.
This appears to be a direct conflict between the two Standards.
Learn how to determine the transaction price under Step 3 of IFRS 15's five-step revenue recognition model, including key considerations for customer contracts and financial reporting.
Share-based payments have become increasingly popular over the years, with many entities using equity instruments or cash and other assets based on the value of equity instruments as a form of payment to directors, senior management, employees, and other suppliers of goods and services.
Share-based payment transactions with non-employees involve compensating parties other than employees, such as suppliers of goods and services.
Get the latest information in your inbox.
Subscribe to receive relevant and timely information and event invitations.
