Just when you didn’t think IFRS could get any better…it does!

The IASB recently issued Annual Improvements to IFRS Standards 2018-2020. There are only four items (proving once again that it was almost perfect already). Here they are. Financial instruments IFRS 9 regards an exchange of debt instruments with substantially different terms between an existing borrower and a lender as an extinguishment of the original financial liability…

Covid-19-related rent concessions – ready to apply!

The IASB has issued Covid-19-related rent concessions, amendments to IFRS 16, effective for annual reporting periods beginning on or after June 1, 2020, with earlier application permitted. This is how the accompanying news release summed it up: The amendment exempts lessees from having to consider individual lease contracts to determine whether rent concessions occurring as…

Adopting IFRS 15 and 16 at once – double trouble!

Kinaxis Inc. provides a recent example of a company simultaneously applying both IFRS 15 and (voluntarily in advance of the effective date) IFRS 16. The company “is a leading provider of cloud-based subscription software that enables its customers to improve and accelerate analysis and decision-making across their supply chain operations.” Here’s how it presented the…

New leasing standard: it’s low value, so what else do you want?

Issues arising in applying the IFRS 16.5 concession that an issuer not apply its requirements to leases for which “the underlying asset is of low value…” We previously discussed this here, providing some of the IASB’s underlying thinking:  “…many lessees expressed concerns about the costs of applying the requirements of IFRS 16 to leases that are…

More on terms of leases, if maybe not of endearment

As we’ve discussed on many past occasions, the IASB has issued IFRS 16 Leases, effective for annual reporting periods beginning on or after January 1, 2019. We looked here at some matters relating to determining the lease term. This is: the non-cancellable period of a lease, together with both: (a) periods covered by an option…