IFRS 16Chapter 8Lesson 1
Lessee: presentation in the financial statements and disclosures
Step 1 of 7Learning objectives
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Where does a lease appear in the lessee's financial statements? In the statement of financial position, the right-of-use asset and the lease liability are shown separately; in profit or loss, interest is separated from depreciation; in the statement of cash flows, principal goes to financing. The notes complete the picture with specific amounts (depreciation, interest, expenses on exempt leases, cash outflows, maturities) and qualitative information selected with judgment.
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Learning objectives
- Present the right-of-use asset and the lease liability in the statement of financial position, including the investment property case.
- Present interest and depreciation in profit or loss, and classify lease payments in the statement of cash flows.
- Prepare the lessee's quantitative disclosures (para. 53 table, maturity analysis, exempt leases).
- Assess the additional qualitative information that is useful in the light of the disclosure objective.