Basics of IFRS 16 – LEASES

Basics of IFRS 16 – LEASES

October 8, 2019 by admin0

Definition of Lease

“A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration” – IFRS 16

“An agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use of an asset for an agreed period of time” – IAS 17

“An arrangement conveys the right to use the asset if the arrangement conveys to the purchaser (lessee) the right to control the use of the underlying asset” – IFRIC 14


“A person who holds the lease of a property; a tenant. “–Oxford


“A person who leases or lets a property to another; a landlord.” –Oxford

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@Philippine Accountancy Guide