{"entries":[{"key":"LX.IFRS16.000001","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SCOPE_EXCLUSIONS_AND_OPTION","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS16.000001","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3","IFRS 16 §4"],"exercise":{"prompt":{"fr":"","en":"Classify each contract according to the treatment IFRS 16 provides for the entity indicated.","es":""},"explanation":{"fr":"","en":"IFRS 16 covers all leases, including subleases (trucks, subleased floor). Excluded are: the use of natural resources such as gas (IFRS 16, para. 3(a)), IFRIC 12 concessions (IFRS 16, para. 3(c)), licences of intellectual property granted by a lessor, which fall under IFRS 15 (IFRS 16, para. 3(d)), and a lessee's rights under an IAS 38 licence, such as video recordings (IFRS 16, para. 3(e)) (IFRS 16, para. 3). For other leased intangibles, the lessee may, but is not required to, apply IFRS 16 (IFRS 16, para. 4).","es":""},"common_error":{"fr":"","en":"Putting the licence granted by the patent owner within IFRS 16, forgetting that the para. 3(d) exclusion concerns the lessor.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN_SCOPE","text":{"fr":"","en":"IFRS 16 applies","es":""}},{"id":"EXCLUDED","text":{"fr":"","en":"Excluded: another standard applies","es":""}},{"id":"OPTION","text":{"fr":"","en":"The lessee may choose IFRS 16","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"A carrier, as lessee, leases a fleet of identified trucks for five years.","es":""},"category":"IN_SCOPE"},{"id":"I2","text":{"fr":"","en":"An operator runs a motorway under a service concession arrangement within IFRIC 12.","es":""},"category":"EXCLUDED"},{"id":"I3","text":{"fr":"","en":"The owner of a patent grants a manufacturer a licence to use it (analysis for the licensor).","es":""},"category":"EXCLUDED"},{"id":"I4","text":{"fr":"","en":"An energy company enters into a contract to use a natural gas field.","es":""},"category":"EXCLUDED"},{"id":"I5","text":{"fr":"","en":"A lessee leases an intangible asset that analysis has shown is not one of the licences covered by IFRS 16, para. 3(e).","es":""},"category":"OPTION"},{"id":"I6","text":{"fr":"","en":"A lessee subleases to another company one floor of the building it leases.","es":""},"category":"IN_SCOPE"},{"id":"I7","text":{"fr":"","en":"A broadcaster, as lessee, holds rights to video recordings under a licence within IAS 38.","es":""},"category":"EXCLUDED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000002","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"LICENCE_SIDE_OF_CONTRACT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS16.000001","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"intangibles-option"},"references":["IFRS 16 §3","IFRS 16 §4"],"exercise":{"prompt":{"fr":"","en":"The media group Studiovia (1) leases an identified film set for five years, (2) holds, under a licence within IAS 38, the rights to broadcast a series and (3) grants a platform a licence over its own catalogue of documentaries. Which combination of standards is correct?","es":""},"explanation":{"fr":"","en":"The set is a leased tangible asset: IFRS 16. For licences, the side of the contract decides: licensee under an IAS 38 licence → IAS 38 (IFRS 16, para. 3(e)); licensor of intellectual property → IFRS 15 (IFRS 16, para. 3(d)). The para. 4 option does not apply to para. 3(e) rights (IFRS 16, para. 4).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"(1) IFRS 16; (2) IAS 38; (3) IFRS 15","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IFRS 16 for all three contracts","es":""},"correct":false,"feedback":{"fr":"","en":"The licensee's rights within IAS 38 (IFRS 16, para. 3(e)) and the licence granted by the licensor (IFRS 16, para. 3(d)) are excluded from the scope.","es":""}},{"id":"C","text":{"fr":"","en":"(1) IFRS 16; (2) IFRS 16 under the option in IFRS 16, para. 4; (3) IFRS 15","es":""},"correct":false,"feedback":{"fr":"","en":"The para. 4 option concerns only intangibles other than those in IFRS 16, para. 3(e); broadcasting rights under an IAS 38 licence remain in IAS 38.","es":""}},{"id":"D","text":{"fr":"","en":"(1) IFRS 16; (2) IAS 38; (3) IFRS 16 as lessor","es":""},"correct":false,"feedback":{"fr":"","en":"A licence of intellectual property granted by the licensor falls under IFRS 15, not IFRS 16 (IFRS 16, para. 3(d)).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000003","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL","IFRS16.SCOPE.OBJECTIVE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AGRIFOOD","tested_point":"SCOPE_VERSUS_EXEMPTION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000001","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"pitfalls"},"references":["IFRS 16 §2","IFRS 16 §3","IFRS 16 §5"],"exercise":{"prompt":{"fr":"","en":"A food cooperative, as lessee, has drafted the following scope memo. Identify the incorrect statements.","es":""},"explanation":{"fr":"","en":"Exclusion of IAS 41 biological assets held by a lessee (IFRS 16, para. 3(b)); subleases included (IFRS 16, para. 3); a short term gives rise to an optional exemption, not an exclusion (IFRS 16, para. 5); consistent application to similar contracts (IFRS 16, para. 2).","es":""},"common_error":{"fr":"","en":"Confusing a scope exclusion (para. 3) with the lessee's optional exemption (para. 5).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"IFRS 16 applies to the six-year lease of our cold store.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The lease of our dairy herd falls within IFRS 16, since these are leased assets.","es":""},"erroneous":true,"correction":{"fr":"","en":"Biological assets within IAS 41 held by a lessee are excluded from the scope of IFRS 16 (para. 3(b)).","es":""}},{"id":"S3","text":{"fr":"","en":"The cold room leased for two months is outside the scope of IFRS 16 because the lease is short.","es":""},"erroneous":true,"correction":{"fr":"","en":"Duration is not a scope exclusion: the lease is within IFRS 16, but the lessee may elect the short-term lease exemption (paras. 3 and 5).","es":""}},{"id":"S4","text":{"fr":"","en":"The sublease of part of the warehouse to a trader falls within IFRS 16.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"Our two identical leases of two identical silos, concluded on the same terms, may be accounted for differently depending on the site.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard is applied consistently to contracts with similar characteristics in similar circumstances (para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000004","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"APPLICATION","format":"MINI_CASE","context":"SOFTWARE","tested_point":"SCOPE_PORTFOLIO_SOFTWARE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000001","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"how"},"references":["IFRS 16 §3","IFRS 16 §4"],"exercise":{"prompt":{"fr":"","en":"Analyse the scope for each of Nexalia's contracts.","es":""},"explanation":{"fr":"","en":"Portfolio summary: (a) IAS 38 (IFRS 16, para. 3(e)); (b) IFRS 15 (IFRS 16, para. 3(d)); (c) IFRS 16; (d) lessee's option (IFRS 16, para. 4), to be exercised and documented (IFRS 16, paras. 3 and 4).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Nexalia, a software publisher, lists its contracts: (a) under a licensing agreement within IAS 38, it uses a third party's patents on compression algorithms; (b) it grants its customers licences to use its own software; (c) it leases its offices for nine years; (d) it leases an intangible right of use that its management, after documented analysis, concluded is not a licensing agreement covered by IFRS 16, para. 3(e) (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"Which standard does Nexalia apply to contract (a)?","es":""},"explanation":{"fr":"","en":"Patents held by a lessee under a licence within IAS 38: excluded from IFRS 16 (IFRS 16, para. 3(e)).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 38","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IFRS 16, compulsorily","es":""},"correct":false,"feedback":{"fr":"","en":"A lessee's rights under an IAS 38 licence, such as patents, are excluded (IFRS 16, para. 3(e)).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 16 or IAS 38, at Nexalia's choice","es":""},"correct":false,"feedback":{"fr":"","en":"The choice in IFRS 16, para. 4, does not apply to the licences covered by para. 3(e).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Which standard does Nexalia apply to the licences granted to its customers (b)?","es":""},"explanation":{"fr":"","en":"Nexalia grants a licence of intellectual property: IFRS 15 (IFRS 16, para. 3(d)).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 16, as lessor","es":""},"correct":false,"feedback":{"fr":"","en":"Licences of intellectual property granted by a lessor are excluded from IFRS 16 (IFRS 16, para. 3(d)).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 15","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 38, as for contract (a)","es":""},"correct":false,"feedback":{"fr":"","en":"Para. 3(e) concerns the lessee (licensee); here Nexalia is the licensor.","es":""}}],"id":"P2","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"For contract (d), Nexalia is required to apply IFRS 16.","es":""},"explanation":{"fr":"","en":"False. For a lease of an intangible asset other than those in IFRS 16, para. 3(e), the lessee may, but is not required to, apply IFRS 16 (IFRS 16, para. 4). The offices (c), a tangible asset, fall within IFRS 16 (IFRS 16, para. 3).","es":""},"common_error":{"fr":"","en":"Believing IFRS 16 is mandatory for leases of intangibles other than those in para. 3(e): it is optional.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000005","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"TRANSPORT","tested_point":"SERVICE_CONCESSION_EXCLUDED","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS16.000001","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"A company that operates a motorway under a service concession arrangement within IFRIC 12 applies IFRS 16 to that arrangement, since the infrastructure used is identified.","es":""},"explanation":{"fr":"","en":"False. Service concession arrangements within IFRIC 12 are excluded from the scope of IFRS 16, whatever the characteristics of the infrastructure (IFRS 16, para. 3(c)).","es":""},"common_error":{"fr":"","en":"Checking for an identified asset before checking the scope exclusions.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000006","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"SHORT_TERM_STRAIGHT_LINE_EXPENSE","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS16.000002","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"numeric-example"},"references":["IFRS 16 §6","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"Case data: the retailer Modélia leases a pop-up shop for 8 months from 1 September N, with no purchase option. It has elected the short-term exemption for this class of premises. Rent is paid at the start of each month. Method used: straight-line. Year end: 31 December N.","es":""},"explanation":{"fr":"","en":"Total: 6 × 7,000 + 2 × 4,000 = 50,000; monthly expense 50,000 / 8 = 6,250; expense for N (September to December) 4 × 6,250 = 25,000. Payments made in N: 4 × 7,000 = 28,000, giving a prepaid expense of 3,000. The lease is short-term (8 months, no purchase option, IFRS 16, Appendix A) and the expense is straight-line (IFRS 16, para. 6).","es":""},"common_error":{"fr":"","en":"Taking the rent paid (28,000) as the expense, whereas decreasing rents must be smoothed over the term.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Monthly rent for months 1 to 6","es":""},"value":"7000","unit":"EUR"},{"label":{"fr":"","en":"Monthly rent for months 7 and 8","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"8","unit":"MONTHS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total lease payments","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Monthly straight-line expense","es":""},"answer":6250,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Expense for year N","es":""},"answer":25000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Prepaid expense at 31/12/N","es":""},"answer":3000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total lease payments","es":""},"expression":"6 * a + 2 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Monthly rent for months 1 to 6","es":""},"value":7000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Monthly rent for months 7 and 8","es":""},"value":4000,"unit":"EUR"}],"result":50000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Monthly straight-line expense","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total lease payments","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease term","es":""},"value":8,"unit":"MONTHS"}],"result":6250,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Expense for year N","es":""},"expression":"4 * a","variables":[{"symbol":"a","meaning":{"fr":"","en":"Monthly straight-line expense","es":""},"value":6250,"unit":"EUR"}],"result":25000,"unit":"EUR"}],"references":["REF.IFRS16.6"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000007","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"SHORT_TERM_STRAIGHT_LINE_EXPENSE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000002","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"numeric-example"},"references":["IFRS 16 §6","IFRS 16","IFRS 16 §8"],"exercise":{"prompt":{"fr":"","en":"Case data: the energy producer Hydrelis leases a back-up generator for exactly 12 months from 1 April N, with no purchase option. It has elected the short-term exemption for the class 'temporary generation equipment'. The first two months are free; the following ten months cost 4,000 per month, paid at the end of each month. Method used: straight-line. Year end: 31 December N.","es":""},"explanation":{"fr":"","en":"A lease of exactly 12 months with no purchase option is short-term (12 months or less, IFRS 16, Appendix A). Total 10 × 4,000 = 40,000, i.e. 40,000 / 12 per month; expense for N over 9 months: 40,000 × 9 / 12 = 30,000 (IFRS 16, para. 6). Payments made in N (June to December): 7 × 4,000 = 28,000; accrued expense 2,000. The short-term election is made by class of underlying asset: Hydrelis made it for the class concerned (IFRS 16, para. 8).","es":""},"common_error":{"fr":"","en":"Excluding the lease from the exemption because it lasts 12 months, whereas the limit is 12 months or less.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease term","es":""},"value":"12","unit":"MONTHS"},{"label":{"fr":"","en":"Free months at the start of the lease","es":""},"value":"2","unit":"MONTHS"},{"label":{"fr":"","en":"Monthly rent for months 3 to 12","es":""},"value":"4000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total lease payments","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Expense for year N (April to December)","es":""},"answer":30000,"tolerance":0.01,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Accrued expense at 31/12/N","es":""},"answer":2000,"tolerance":0.01,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total lease payments","es":""},"expression":"10 * a","variables":[{"symbol":"a","meaning":{"fr":"","en":"Monthly rent for months 3 to 12","es":""},"value":4000,"unit":"EUR"}],"result":40000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Expense for year N (April to December)","es":""},"expression":"a * 9 / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total lease payments","es":""},"value":40000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease term","es":""},"value":12,"unit":"MONTHS"}],"result":30000,"unit":"EUR"}],"references":["REF.IFRS16.6","REF.IFRS16.8"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000008","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"LOW_VALUE_ELIGIBILITY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000002","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"low-value"},"references":["IFRS 16 §B3","IFRS 16 §B5","IFRS 16 §B6","IFRS 16 §B7","IFRS 16 §B8"],"exercise":{"prompt":{"fr":"","en":"For each leased asset, indicate whether it can qualify as a low-value asset under IFRS 16.","es":""},"explanation":{"fr":"","en":"Tablets, personal computers and small office furniture are possible examples (IFRS 16, para. B8), value being assessed when new regardless of age (para. B3). A car is by nature not of low value (para. B6); a subleased asset cannot be (para. B7); nor can an asset highly dependent on other assets (para. B5).","es":""},"common_error":{"fr":"","en":"Reasoning on the current value of the used asset instead of its value when new.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ELIGIBLE","text":{"fr":"","en":"Can be of low value","es":""}},{"id":"NOT_ELIGIBLE","text":{"fr":"","en":"Cannot be of low value","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"New tablets given to sales staff, used on their own","es":""},"category":"ELIGIBLE"},{"id":"I2","text":{"fr":"","en":"Small items of office furniture (chairs, drawer units)","es":""},"category":"ELIGIBLE"},{"id":"I3","text":{"fr":"","en":"Four-year-old used laptop whose value when new is modest","es":""},"category":"ELIGIBLE"},{"id":"I4","text":{"fr":"","en":"Seven-year-old company car whose current value is low","es":""},"category":"NOT_ELIGIBLE"},{"id":"I5","text":{"fr":"","en":"Leased telephones that the lessee subleases to its franchisees","es":""},"category":"NOT_ELIGIBLE"},{"id":"I6","text":{"fr":"","en":"Inexpensive server modules that only work within the server rack leased with them","es":""},"category":"NOT_ELIGIBLE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000009","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"EXEMPTION_POLICY_ERRORS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS16.000002","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"pitfalls"},"references":["IFRS 16 §6","IFRS 16 §8","IFRS 16","IFRS 16 §B4","IFRS 16 §B8"],"exercise":{"prompt":{"fr":"","en":"Here is a telecoms operator's accounting policy note on the lessee exemptions. Identify the incorrect statements.","es":""},"explanation":{"fr":"","en":"Short-term election by class and low-value election lease by lease (IFRS 16, para. 8); assessment in absolute terms (IFRS 16, para. B4); telephones given as possible examples (IFRS 16, para. B8); a purchase option rules out short-term (IFRS 16, Appendix A); straight-line expense or another systematic basis (IFRS 16, para. 6).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"We apply the short-term exemption case by case: to the temporary antennas at site A, but not to the identical ones at site B.","es":""},"erroneous":true,"correction":{"fr":"","en":"The short-term election is made by class of assets of a similar nature and use, not lease by lease (para. 8).","es":""}},{"id":"S2","text":{"fr":"","en":"The telephones leased for our employees, who use them themselves, can be treated as low-value assets lease by lease.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Because our group is very large, these telephones are negligible for us: this is what justifies the exemption.","es":""},"erroneous":true,"correction":{"fr":"","en":"Low value is assessed in absolute terms, regardless of the size of the lessee and the materiality of the leases (para. B4).","es":""}},{"id":"S4","text":{"fr":"","en":"An 11-month lease of a generator with a purchase option is a short-term lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"A lease that contains a purchase option is not a short-term lease (Appendix A).","es":""}},{"id":"S5","text":{"fr":"","en":"For exempt leases, the expense is straight-line, unless another systematic basis better represents the pattern of benefit.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000010","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"EVENTS","tested_point":"EXEMPT_LEASE_YEAR_END_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000002","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"entry"},"references":["IFRS 16 §5","IFRS 16 §6"],"exercise":{"prompt":{"fr":"","en":"Case data: the events company Festivo leases stage equipment for 10 months from 1 October N, with no purchase option, and applies the short-term exemption. Rent paid at the start of each month: 9,000 per month for the first 4 months, then 3,000 per month for 6 months. Method used: straight-line. Record the summary entry for the year ending 31 December N.","es":""},"explanation":{"fr":"","en":"Total payments: 4 × 9,000 + 6 × 3,000 = 54,000, i.e. 5,400 per month on a straight-line basis (IFRS 16, para. 6). Expense for N (October to December): 3 × 5,400 = 16,200. Payments in N: 3 × 9,000 = 27,000. The excess paid, 10,800, is a prepaid expense. No right-of-use asset or lease liability is recognised (IFRS 16, para. 5).","es":""},"common_error":{"fr":"","en":"Expensing the whole 27,000 paid, whereas the expense must be smoothed over the 10 months.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"LEASE_EXPENSE","text":{"fr":"","en":"Lease expense (short-term leases)","es":""}},{"id":"PREPAID_EXPENSES","text":{"fr":"","en":"Prepaid expenses","es":""}},{"id":"ACCRUED_EXPENSES","text":{"fr":"","en":"Accrued expenses","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"RIGHT_OF_USE_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}}],"lines":[{"id":"L1","account":"LEASE_EXPENSE","side":"DEBIT","amount":16200},{"id":"L2","account":"PREPAID_EXPENSES","side":"DEBIT","amount":10800},{"id":"L3","account":"CASH","side":"CREDIT","amount":27000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000011","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"EXEMPTION_CONSEQUENCES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS16.000002","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §5","IFRS 16 §6","IFRS 16 §7","IFRS 16 §8","IFRS 16 §22","IFRS 16 §49"],"exercise":{"prompt":{"fr":"","en":"A lessee applies one of the IFRS 16 exemptions to a lease. Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"The exempt lessee does not apply paras. 22 to 49 (IFRS 16, para. 5) and spreads the lease payments as an expense (IFRS 16, para. 6). Short-term is elected by class, low value lease by lease (IFRS 16, para. 8). A modification of a short-term lease creates a new lease (IFRS 16, para. 7).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises neither a right-of-use asset nor a lease liability for that lease.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It recognises the lease payments as an expense on a straight-line basis or on another more representative systematic basis.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"If the short-term lease is modified, the initial exemption remains in place until the end with no new analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"A modification or change in term makes the lease a new lease (para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"The short-term election can be limited to a single lease within a class of assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The short-term election is made by class of asset (para. 8).","es":""}},{"id":"E","text":{"fr":"","en":"The low-value election can be made lease by lease.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The lessor can apply the same exemptions to its leases.","es":""},"correct":false,"feedback":{"fr":"","en":"The para. 5 exemptions are an election available to the lessee.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000012","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"HEALTHCARE","tested_point":"EXEMPTIONS_PORTFOLIO","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000002","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"how"},"references":["IFRS 16 §5","IFRS 16 §6","IFRS 16 §8","IFRS 16","IFRS 16 §B4","IFRS 16 §B5","IFRS 16 §B8"],"exercise":{"prompt":{"fr":"","en":"Analyse the three contracts of Clinique Belval in the light of the lessee exemptions.","es":""},"explanation":{"fr":"","en":"Three different answers for three contracts: low value for the laptops (paras. B4, B8), short-term for the scanner (Appendix A, paras. 6 and 8), no low-value exemption for dependent sensors (para. B5). These exemptions are elections available to the lessee, not requirements (IFRS 16, para. 5).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Clinique Belval has a 31 December N year end. It has elected the short-term exemption for the class 'mobile medical equipment' and its policy is to apply the low-value exemption when the conditions are met.","es":""},"exhibits":[{"title":{"fr":"","en":"Contracts for the year","es":""},"body":{"fr":"","en":"1. Thirty standard laptops leased for three years, each used on its own by a staff member.\n2. A mobile ultrasound scanner leased for 10 months from 1 May N, with no purchase option: first month free, then 2,500 per month for 9 months, paid at the end of each month.\n3. Fifteen monitoring sensors with a modest unit price, which only work when integrated into the clinic's central monitoring system.","es":""}}],"parts":[{"prompt":{"fr":"","en":"How can the clinic account for contract 1?","es":""},"explanation":{"fr":"","en":"Personal computers are possible examples of low-value assets (IFRS 16, para. B8), assessed in absolute terms (para. B4); the election can be made lease by lease (IFRS 16, para. 8).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Low-value exemption, elected for this lease","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On-balance-sheet accounting required, because thirty laptops represent a material amount","es":""},"correct":false,"feedback":{"fr":"","en":"Low value is assessed asset by asset, in absolute terms, whether or not the leases are material (para. B4).","es":""}},{"id":"C","text":{"fr":"","en":"Short-term exemption","es":""},"correct":false,"feedback":{"fr":"","en":"The lease lasts three years: it is not short-term (Appendix A).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Contract 2, exempt as a short-term lease, straight-line expense (method used). Calculate:","es":""},"explanation":{"fr":"","en":"Total 9 × 2,500 = 22,500, i.e. 2,250 per month; expense for N: 8 × 2,250 = 18,000 (IFRS 16, para. 6). Payments from June to December: 7 × 2,500 = 17,500; accrued expense 500.","es":""},"common_error":{"fr":"","en":"Expensing the rents paid: the straight-line expense spreads total rents, including the free month.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Monthly rent for months 2 to 10","es":""},"value":"2500","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"10","unit":"MONTHS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Expense for year N (May to December)","es":""},"answer":18000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Accrued expense at 31/12/N","es":""},"answer":500,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Can the sensors in contract 3 be treated as low-value assets?","es":""},"explanation":{"fr":"","en":"An asset can be of low value only if the lessee can benefit from it on its own or with readily available resources and if it is not highly dependent on other assets (IFRS 16, para. B5). This conclusion is a matter of judgment and is documented; failing another exemption, the lease is recognised on the balance sheet.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because their unit price is modest","es":""},"correct":false,"feedback":{"fr":"","en":"Price is not enough: the asset must not be highly dependent on, or highly interrelated with, other assets (para. B5).","es":""}},{"id":"B","text":{"fr":"","en":"No, because they only provide benefit when integrated into the central system, on which they are highly dependent","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, provided the fifteen sensors are grouped in a single contract","es":""},"correct":false,"feedback":{"fr":"","en":"Grouping the contracts does not change the asset's dependence on the system (para. B5).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000013","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"APPLICATION","format":"TRUE_FALSE","context":"LOGISTICS","tested_point":"SHORT_TERM_MODIFICATION_NEW_LEASE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS16.000002","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"short-term"},"references":["IFRS 16 §7","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"Case data: a logistics company leases a temporary warehouse for 10 months, with no purchase option, and applies the short-term exemption. In the 8th month, it exercises a 6-month extension option that had not been taken into account at the outset. It may continue to apply the initial exemption with no further analysis.","es":""},"explanation":{"fr":"","en":"False. A change in the lease term, such as the exercise of an option not initially taken into account, means the short-term lease is considered a new lease (IFRS 16, para. 7). The lessee must therefore reassess whether this new lease meets the short-term conditions (IFRS 16, Appendix A) before keeping the exemption.","es":""},"common_error":{"fr":"","en":"Assuming that the exemption obtained at the commencement date applies for the whole life of the lease, whatever the changes.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000014","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"LESSOR_TERMS_AND_LIVES","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS16.000003","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"lessor-terms"},"references":["IFRS 16","IFRS 16 §67","IFRS 16 §68"],"exercise":{"prompt":{"fr":"","en":"Match each IFRS 16 term with its description (teaching paraphrase).","es":""},"explanation":{"fr":"","en":"These paraphrases reflect the substance of the definitions in Appendix A (IFRS 16, Appendix A). The net investment, measured at the implicit rate, is the amount of the lessor's receivable in a finance lease (IFRS 16, paras. 67 and 68). The remaining description is the lessee's incremental borrowing rate, unrelated to these terms.","es":""},"common_error":{"fr":"","en":"Confusing gross and net investment: net is gross discounted at the implicit rate.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Gross investment in the lease","es":""}},{"id":"L2","text":{"fr":"","en":"Net investment in the lease","es":""}},{"id":"L3","text":{"fr":"","en":"Unguaranteed residual value","es":""}},{"id":"L4","text":{"fr":"","en":"Economic life","es":""}},{"id":"L5","text":{"fr":"","en":"Useful life","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Lease payments receivable by the lessor under a finance lease, plus the unguaranteed residual value accruing to it","es":""}},{"id":"R2","text":{"fr":"","en":"Gross investment discounted at the interest rate implicit in the lease","es":""}},{"id":"R3","text":{"fr":"","en":"Part of the residual value whose realisation is not assured to the lessor or is guaranteed only by a party related to it","es":""}},{"id":"R4","text":{"fr":"","en":"Period over which the asset is expected to be economically usable by one or more users","es":""}},{"id":"R5","text":{"fr":"","en":"Period over which the asset is expected to be available for use by the entity","es":""}},{"id":"R6","text":{"fr":"","en":"Rate at which the lessee could borrow, on comparable terms, the funds needed to obtain an asset of a similar value to the right-of-use asset","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000015","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS"],"dimension":"RECOGNITION","format":"ORDERING","context":"REAL_ESTATE","tested_point":"INCEPTION_COMMENCEMENT_SEQUENCE","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS16.000003","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16","IFRS 16 §9","IFRS 16 §22","IFRS 16 §18"],"exercise":{"prompt":{"fr":"","en":"The company Bureaulia leases offices that are being renovated. Put the steps in chronological and logical order.","es":""},"explanation":{"fr":"","en":"At the inception date, the parties commit and the entity identifies the lease (IFRS 16, Appendix A and para. 9). At the commencement date, when the asset is made available, the lessee recognises the right-of-use asset and the lease liability (IFRS 16, para. 22); the date of the first payment is irrelevant. The lease term, which starts at the commencement date, includes the non-cancellable period (IFRS 16, para. 18).","es":""},"common_error":{"fr":"","en":"Recognising the right-of-use asset at signature, or waiting for the first payment.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"The parties sign the lease and commit to its principal terms (inception date).","es":""}},{"id":"S2","text":{"fr":"","en":"Bureaulia assesses whether the contract is or contains a lease.","es":""}},{"id":"S3","text":{"fr":"","en":"The lessor hands over the keys of the renovated offices (commencement date).","es":""}},{"id":"S4","text":{"fr":"","en":"Bureaulia recognises the right-of-use asset and the lease liability.","es":""}},{"id":"S5","text":{"fr":"","en":"Bureaulia pays its first rent, three months after receiving the keys.","es":""}},{"id":"S6","text":{"fr":"","en":"The non-cancellable period of the lease ends.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000016","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"LEASE_PAYMENTS_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000003","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"payments-and-rates"},"references":["IFRS 16","IFRS 16 §27","IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"From the point of view of the lessee of a retail lease, classify each clause according to its place in the lease payments.","es":""},"explanation":{"fr":"","en":"Lease payments comprise fixed payments less lease incentives (amounts paid by the lessor or lessee costs it reimburses) and variable payments that depend on an index or a rate (IFRS 16, Appendix A and para. 27). A rent based on sales depends neither on an index nor on a rate: it is not among the lease payments; after the commencement date, it is recognised in profit or loss in the period in which the sales that trigger it occur (IFRS 16, para. 38).","es":""},"common_error":{"fr":"","en":"Adding lease incentives to the payments, or including all variable payments whatever they are.","es":""},"format":"CLASSIFICATION","categories":[{"id":"FIXED","text":{"fr":"","en":"Fixed payment (included)","es":""}},{"id":"INCENTIVE","text":{"fr":"","en":"Lease incentive (deducted)","es":""}},{"id":"INDEX","text":{"fr":"","en":"Variable payment depending on an index (included)","es":""}},{"id":"NOT_LEASE_PAYMENT","text":{"fr":"","en":"Not part of the lease payments","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Base rent of 60,000 per year","es":""},"category":"FIXED"},{"id":"I2","text":{"fr":"","en":"Fixed rent of 2,000 per month for an adjoining storeroom leased under the same contract","es":""},"category":"FIXED"},{"id":"I3","text":{"fr":"","en":"Reimbursement by the lessor of 15,000 of the lessee's fit-out works","es":""},"category":"INCENTIVE"},{"id":"I4","text":{"fr":"","en":"Payment of 5,000 by the lessor to the lessee on signature, to encourage it to move in","es":""},"category":"INCENTIVE"},{"id":"I5","text":{"fr":"","en":"Annual indexation of the rent to a consumer price index","es":""},"category":"INDEX"},{"id":"I6","text":{"fr":"","en":"Additional rent equal to 2% of the store's sales","es":""},"category":"NOT_LEASE_PAYMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000017","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"DISCOUNT_RATE_HIERARCHY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS16.000003","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"payments-and-rates"},"references":["IFRS 16","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Complete the sentences.","es":""},"explanation":{"fr":"","en":"The commencement date is when the lessor makes the asset available (IFRS 16, Appendix A). The lessee discounts at the implicit rate if it can be readily determined, otherwise at its incremental borrowing rate (IFRS 16, para. 26).","es":""},"common_error":{"fr":"","en":"Reversing the order of the rates, as if the incremental borrowing rate were the rule and the implicit rate the exception.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The commencement date is the date on which the {{party}} makes the underlying asset available to the other party. At that date, the lessee discounts the lease payments at the {{rate1}} if it can be readily determined; otherwise, it uses its {{rate2}}.","es":""},"blanks":[{"id":"party","mode":"CHOICE","choices":[{"id":"LESSOR","text":{"fr":"","en":"lessor","es":""}},{"id":"LESSEE","text":{"fr":"","en":"lessee","es":""}},{"id":"MANUFACTURER","text":{"fr":"","en":"manufacturer","es":""}}],"answer":"LESSOR"},{"id":"rate1","mode":"CHOICE","choices":[{"id":"IMPLICIT","text":{"fr":"","en":"interest rate implicit in the lease","es":""}},{"id":"IBR","text":{"fr":"","en":"incremental borrowing rate","es":""}},{"id":"RETURN","text":{"fr":"","en":"rate of return expected by its shareholders","es":""}}],"answer":"IMPLICIT"},{"id":"rate2","mode":"CHOICE","choices":[{"id":"IMPLICIT","text":{"fr":"","en":"interest rate implicit in the lease","es":""}},{"id":"IBR","text":{"fr":"","en":"incremental borrowing rate","es":""}},{"id":"RETURN","text":{"fr":"","en":"rate of return expected by its shareholders","es":""}}],"answer":"IBR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000018","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"MANUFACTURING","tested_point":"KEY_TERMS_MISREADING","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000003","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"pitfalls"},"references":["IFRS 16","IFRS 16 §18","IFRS 16 §22","IFRS 16 §26","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"An accounting assistant at a manufacturer, the lessee of a machine, has summarised the contract. Identify the incorrect statements.","es":""},"explanation":{"fr":"","en":"Commencement date and recognition (IFRS 16, Appendix A and para. 22); lease incentives deducted from the payments (IFRS 16, para. 27); incremental borrowing rate when the implicit rate cannot be readily determined (IFRS 16, para. 26); economic life distinct from the lease term (IFRS 16, Appendix A and para. 18).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The contract was signed on 3 March: we recognise the right-of-use asset and the lease liability on 3 March, although the machine is delivered and usable only on 1 June.","es":""},"erroneous":true,"correction":{"fr":"","en":"Recognition takes place at the commencement date, when the machine is made available, i.e. 1 June (Appendix A, para. 22).","es":""}},{"id":"S2","text":{"fr":"","en":"The lessor reimburses us 8,000 of transport costs: we add it to the lease payments.","es":""},"erroneous":true,"correction":{"fr":"","en":"The lessor's reimbursement of the lessee's costs is a lease incentive: it reduces the lease payments (Appendix A, para. 27).","es":""}},{"id":"S3","text":{"fr":"","en":"We know neither the fair value of the machine nor the lessor's costs: we discount at our incremental borrowing rate.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The unguaranteed residual value is a lessor notion: it is the part of the residual value whose realisation is not assured to it.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"The machine's economic life, 12 years, is by definition the term of our lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"Economic life concerns the asset across all users; the lease term is the non-cancellable period plus reasonably certain options (Appendix A, para. 18).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000019","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"TELECOM","tested_point":"CAPACITY_PORTION_AND_CONTROL","difficulty":"ADVANCED","estimated_time_s":420,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"identified-asset"},"references":["IFRS 16 §11","IFRS 16 §B18","IFRS 16 §B20","IFRS 16 §B24","IFRS 16 §B26","IFRS 16 §B27"],"exercise":{"prompt":{"fr":"","en":"Analyse the network capacity contracts signed by Néotel.","es":""},"explanation":{"fr":"","en":"Contract 1 covers physically distinct fibres whose use Néotel directs: it contains a lease. Contract 2 covers only a non-distinct capacity, far from substantially all: it is a service. Contract 3 covers all of the capacity of cable C: the cable is an identified asset; whether there is a lease still depends on the analysis of the benefits and the decisions (IFRS 16, paras. B20 and B24).","es":""},"common_error":{"fr":"","en":"Treating any reserved throughput as an identified asset, without checking whether the portion is physically distinct or represents substantially all of the capacity.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Néotel, a telecommunications operator, signs several ten-year contracts with Fibrexa, which owns fibre-optic cables between two cities (case data). On the fibres reserved for it, Néotel alone decides when, how much and what kind of data is transmitted; Fibrexa is responsible only for maintaining the cables.","es":""},"exhibits":[{"title":{"fr":"","en":"Content of the contracts (case data)","es":""},"body":{"fr":"","en":"Contract 1: four fibres in cable A, designated by number and reserved for Néotel. Contract 2: a guaranteed throughput on cable B, shared with other operators, with no fibre allocated; this throughput is about 15% of the cable's capacity. Contract 3: the entire capacity of cable C, with no fibres designated. Under contract 1, Fibrexa may switch the traffic to other fibres only during repairs.","es":""}}],"parts":[{"prompt":{"fr":"","en":"For each contract, is there an identified asset?","es":""},"explanation":{"fr":"","en":"Designated fibres are physically distinct portions. A capacity portion that is not physically distinct is not an identified asset, unless it represents substantially all of the asset's capacity, like the whole of cable C (IFRS 16, para. B20).","es":""},"common_error":{"fr":"","en":"Seeing an identified asset in 15% of capacity with no fibre assigned: a non-distinct portion is one only if it covers substantially all.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IDENTIFIED","text":{"fr":"","en":"Identified asset","es":""}},{"id":"NOT_IDENTIFIED","text":{"fr":"","en":"No identified asset","es":""}}],"items":[{"id":"C1","text":{"fr":"","en":"Contract 1: four designated fibres in cable A","es":""},"category":"IDENTIFIED"},{"id":"C2","text":{"fr":"","en":"Contract 2: about 15% of the capacity of cable B, with no fibre allocated","es":""},"category":"NOT_IDENTIFIED"},{"id":"C3","text":{"fr":"","en":"Contract 3: the entire capacity of cable C","es":""},"category":"IDENTIFIED"}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"In contract 1, does Fibrexa's ability to switch traffic during repairs call the identified asset into question?","es":""},"explanation":{"fr":"","en":"The supplier's right or obligation to replace the asset for repair or maintenance does not prevent the customer from having an identified asset (IFRS 16, para. B18).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: any replacement right gives the supplier a substantive substitution right.","es":""},"correct":false,"feedback":{"fr":"","en":"A substitution right is substantive only with practical ability and a net economic benefit, and replacement for repair expressly has no effect.","es":""}},{"id":"B","text":{"fr":"","en":"No: replacement limited to repairs does not prevent the asset from being identified.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes, but only during repair periods.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not split the period: replacement for repair or maintenance simply does not prevent the asset from being identified.","es":""}}],"id":"P2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Who directs the use of the fibres in contract 1?","es":""},"explanation":{"fr":"","en":"Deciding when, how much and what is produced or transmitted are rights to direct how and for what purpose the asset is used (IFRS 16, paras. B24 and B26); maintenance by the supplier does not change this (IFRS 16, para. B27). Contract 1 therefore contains a lease.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fibrexa, because it maintains the cable.","es":""},"correct":false,"feedback":{"fr":"","en":"Maintaining the asset is not the same as directing how and for what purpose it is used.","es":""}},{"id":"B","text":{"fr":"","en":"Néotel, which decides when, how much and what data to transmit.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Nobody: the use of a fibre is predetermined by its design.","es":""},"correct":false,"feedback":{"fr":"","en":"Néotel can change when, how much and what is transmitted: the relevant decisions are not predetermined.","es":""}}],"id":"P3","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"In year 3, Néotel's traffic doubles without contract 2 being changed. Néotel must reassess whether that contract contains a lease.","es":""},"explanation":{"fr":"","en":"False. The entity reassesses whether a contract is or contains a lease only if its terms and conditions are changed (IFRS 16, para. 11).","es":""},"common_error":{"fr":"","en":"Reassessing the contract after a change in usage: only a change in terms and conditions requires it.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000020","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"ENERGY","tested_point":"PREDETERMINED_USE_CUSTOMER_DESIGN","difficulty":"EXPERT","estimated_time_s":540,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"judgment"},"references":["IFRS 16 §B13","IFRS 16 §B14","IFRS 16 §B21","IFRS 16 §B24","IFRS 16 §B27","IFRS 16 §B28"],"exercise":{"prompt":{"fr":"","en":"Determine whether Papyrus's steam supply contract contains a lease.","es":""},"explanation":{"fr":"","en":"Identified asset with no possible substitution, substantially all of the benefits (steam and ash proceeds) and decisions predetermined by a design made by the customer: the contract contains a lease (IFRS 16, paras. B14, B21 and B24).","es":""},"common_error":{"fr":"","en":"Concluding that it is a simple steam purchase because the supplier operates the plant, without examining who predetermined its use.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Papyrus, a paper manufacturer, signs a twelve-year contract with Thermalis. On a designated plot next to Papyrus's mill, Thermalis builds a biomass boiler plant whose capacity, steam pressure, type of fuel and connection to the machines Papyrus set before signing. The plant runs continuously at those settings, which the contract does not allow either party to change. Papyrus buys all the steam produced and receives the proceeds from selling the ash, which is recovered as an agricultural soil improver. Thermalis operates and maintains the plant in line with industry practice; it cannot supply the steam from another facility (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"Is the boiler plant an identified asset?","es":""},"explanation":{"fr":"","en":"The asset is designated (IFRS 16, para. B13) and the supplier does not have the practical ability to replace it: there is no substantive substitution right (IFRS 16, para. B14).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: it is designated and Thermalis cannot replace it with another facility.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: a plant still to be built cannot be identified at signature.","es":""},"correct":false,"feedback":{"fr":"","en":"An asset may be specified explicitly or identified implicitly when it is made available; here it is designated by its site and characteristics.","es":""}},{"id":"C","text":{"fr":"","en":"No: Thermalis, which operates the plant, necessarily has a substitution right.","es":""},"correct":false,"feedback":{"fr":"","en":"Operating is not substituting; and with no other possible facility, Thermalis has no practical ability to substitute.","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Which items are part of the economic benefits Papyrus derives from use of the plant?","es":""},"explanation":{"fr":"","en":"The economic benefits from use include the primary output and by-products, including the cash flows they generate, as well as other benefits that could be realised in a transaction with a third party (IFRS 16, para. B21): Papyrus obtains substantially all of those benefits.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The steam produced by the plant","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The proceeds from selling the combustion ash","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The remuneration Thermalis receives from Papyrus","es":""},"correct":false,"feedback":{"fr":"","en":"This is the consideration paid by Papyrus, not a benefit from use of the asset.","es":""}},{"id":"D","text":{"fr":"","en":"The fees Thermalis charges other customers for maintaining their own plants","es":""},"correct":false,"feedback":{"fr":"","en":"This income comes from other assets and contracts, not from use of this plant.","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The decisions about how and for what purpose the plant is used are predetermined (it runs continuously at settings fixed by the design and by the contract). Does Papyrus direct the use?","es":""},"explanation":{"fr":"","en":"When the relevant decisions are predetermined, in particular by the design of the asset (IFRS 16, para. B28), the customer directs the use if it designed the asset or specific aspects of it in a way that predetermines its use (IFRS 16, para. B24). The fact that Thermalis operates and maintains the plant does not give Thermalis that right (IFRS 16, para. B27). The contract contains a lease; this reasoning remains a judgement to be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: Thermalis operates the plant day to day.","es":""},"correct":false,"feedback":{"fr":"","en":"Operating and maintenance rights are not, by themselves, rights to direct the use.","es":""}},{"id":"B","text":{"fr":"","en":"Yes: it designed the plant in a way that predetermines its use.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No: when everything is predetermined, nobody decides, so it is a service.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard deals with exactly this case: the customer directs the use if it operates the asset or designed it.","es":""}},{"id":"D","text":{"fr":"","en":"Yes: buying all the output is enough to direct the use.","es":""},"correct":false,"feedback":{"fr":"","en":"Obtaining the benefits and directing the use are two separate conditions; here the second rests on the design.","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Which document is most useful to support the conclusion in Papyrus's file?","es":""},"explanation":{"fr":"","en":"The conclusion rests on the customer's design of the asset (IFRS 16, para. B24): dated evidence of that design, prior to the contract, is the key document of the file (documentation good practice).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The specifications signed by Papyrus before the contract, setting capacity, pressure, fuel and connection","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The maintenance schedule drawn up by Thermalis","es":""},"correct":false,"feedback":{"fr":"","en":"It documents operation by the supplier, not design by the customer, which is the basis of the conclusion.","es":""}},{"id":"C","text":{"fr":"","en":"The mill's steam consumption records","es":""},"correct":false,"feedback":{"fr":"","en":"They measure the steam consumed, not who predetermined the use of the plant.","es":""}}],"id":"P4","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000021","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"AUTOMOTIVE","tested_point":"RELEVANT_DECISION_RIGHTS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"direct-use"},"references":["IFRS 16 §B25","IFRS 16 §B26","IFRS 16 §B27","IFRS 16 §B30"],"exercise":{"prompt":{"fr":"","en":"A carmaker has, for seven years, a designated paint line installed in its plant. Classify each right provided for in the contract.","es":""},"explanation":{"fr":"","en":"Changing the type, timing and quantity of output are rights to direct how and for what purpose the asset is used (IFRS 16, paras. B25 and B26). Maintenance is not (IFRS 16, para. B27), and safety or compliance clauses are protective rights that define the scope of the right of use (IFRS 16, para. B30).","es":""},"common_error":{"fr":"","en":"Thinking the supplier keeps control because it maintains the asset and imposes safety rules.","es":""},"format":"CLASSIFICATION","categories":[{"id":"DIRECTS_USE","text":{"fr":"","en":"Right to direct how and for what purpose the asset is used","es":""}},{"id":"NOT_DIRECTING","text":{"fr":"","en":"Operating, maintenance or protective right","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The carmaker chooses the models and colours painted on the line.","es":""},"category":"DIRECTS_USE"},{"id":"I2","text":{"fr":"","en":"The carmaker sets the production schedule and decides when the line is stopped.","es":""},"category":"DIRECTS_USE"},{"id":"I3","text":{"fr":"","en":"The carmaker decides how many vehicles are painted each month.","es":""},"category":"DIRECTS_USE"},{"id":"I4","text":{"fr":"","en":"The supplier's technicians carry out preventive maintenance of the line.","es":""},"category":"NOT_DIRECTING"},{"id":"I5","text":{"fr":"","en":"The supplier prohibits use of the line beyond the equipment manufacturer's safety limits.","es":""},"category":"NOT_DIRECTING"},{"id":"I6","text":{"fr":"","en":"The supplier requires compliance with environmental regulations on solvents.","es":""},"category":"NOT_DIRECTING"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000022","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"LEASE_ASSESSMENT_SEQUENCE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"how"},"references":["IFRS 16 §9","IFRS 16 §11","IFRS 16 §B9","IFRS 16 §B31"],"exercise":{"prompt":{"fr":"","en":"A management accountant is analysing a new supply contract. Put the steps of the analysis in order.","es":""},"explanation":{"fr":"","en":"The assessment is made at the inception date (IFRS 16, para. 9); it chains the identified asset, the economic benefits and the right to direct the use (IFRS 16, paras. B9 and B31); the conclusion is revisited only if the terms and conditions change (IFRS 16, para. 11).","es":""},"common_error":{"fr":"","en":"Examining the right to direct use before the identified asset, or revisiting the conclusion without a contract modification.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"At the inception date, identify the contract, the asset concerned and the period of use","es":""}},{"id":"S2","text":{"fr":"","en":"Check whether there is an identified asset (designation, capacity portion, substitution right)","es":""}},{"id":"S3","text":{"fr":"","en":"Check that the customer obtains substantially all of the economic benefits from use","es":""}},{"id":"S4","text":{"fr":"","en":"Determine who directs how and for what purpose the asset is used (or, if predetermined, who operates or designed the asset)","es":""}},{"id":"S5","text":{"fr":"","en":"Conclude and, if the contract contains a lease, identify its components","es":""}},{"id":"S6","text":{"fr":"","en":"Revisit the conclusion only if the terms and conditions of the contract are changed","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000023","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"SUBSTITUTION_FROM_A_DATE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"substitution"},"references":["IFRS 16 §B14","IFRS 16 §B15"],"exercise":{"prompt":{"fr":"","en":"A newspaper printer has a designated rotary press for six years. The contract allows the supplier to replace it with another press, but only from the fourth year. What conclusion should be drawn?","es":""},"explanation":{"fr":"","en":"A substitution right is substantive only if the supplier has the practical ability to substitute throughout the period of use (IFRS 16, para. B14). A right that can be exercised only from a particular date is not substantive (IFRS 16, para. B15): the press remains an identified asset for the six years.","es":""},"common_error":{"fr":"","en":"Believing that any substitution clause, whatever its effective date, makes the identified asset disappear.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"There is no identified asset, since the supplier has a substitution right.","es":""},"correct":false,"feedback":{"fr":"","en":"A right that applies only from a particular date gives no practical ability to substitute throughout the period: it is not substantive.","es":""}},{"id":"B","text":{"fr":"","en":"The press is an identified asset: the time-limited substitution right is not substantive.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The press is an identified asset for the first three years only; the contract is then a service.","es":""},"correct":false,"feedback":{"fr":"","en":"As the right is not substantive, it has no effect, even after the third year.","es":""}},{"id":"D","text":{"fr":"","en":"No conclusion is possible: the printer must presume the right is substantive.","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption works the other way: if it cannot readily assess it, the customer presumes the right is not substantive.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000024","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"TRANSPORT","tested_point":"SCOPE_OF_ECONOMIC_BENEFITS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"economic-benefits"},"references":["IFRS 16 §B21","IFRS 16 §B22","IFRS 16 §B23"],"exercise":{"prompt":{"fr":"","en":"A shipping company charters a designated vessel exclusively for five years. The contract limits navigation to European waters, allows sub-chartering and provides, in addition to a fixed hire, for 2% of freight revenue to be paid to the owner. Which items are part of the economic benefits to be considered in assessing substantially all?","es":""},"explanation":{"fr":"","en":"Benefits may be obtained directly or indirectly, including by subleasing (IFRS 16, para. B21). They are assessed within the contractual scope of the right of use (IFRS 16, para. B22). Cash flows paid over to the owner as consideration for the use are part of the benefits obtained by the customer (IFRS 16, para. B23).","es":""},"common_error":{"fr":"","en":"Excluding the 2% paid to the owner, as if the owner shared in the benefits of the use.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Freight revenue from voyages within European waters","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Income from any sub-chartering of the vessel","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The 2% of revenue paid over to the owner","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Revenue that voyages outside Europe, prohibited by the contract, would generate","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis stays within the scope of the right of use: benefits outside the contractual limits are not considered.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000025","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"LEASE_ANALYSIS_MEMO_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"pitfalls"},"references":["IFRS 16 §9","IFRS 16 §11","IFRS 16 §B18","IFRS 16 §B19","IFRS 16 §B26"],"exercise":{"prompt":{"fr":"","en":"An automotive parts distributor has ten designated delivery trucks made available by a rental company. An assistant writes the analysis memo below. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"S3 correctly applies the relevant decision-making rights (IFRS 16, para. B26) and S4 the presumption that the right is not substantive (IFRS 16, para. B19). S1, S2 and S5 confuse form and substance, replacement for repair and substitution, and periodic reassessment and modification of the contract.","es":""},"common_error":{"fr":"","en":"Accepting the title of the contract as the conclusion, without working through the three questions of the test.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The contract is headed 'logistics services agreement': it therefore cannot contain a lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"The title has no effect: one must assess whether the contract conveys the right to control the use of an identified asset (IFRS 16, para. 9).","es":""}},{"id":"S2","text":{"fr":"","en":"The rental company replaces a broken-down truck while it is being repaired: the trucks are therefore not identified assets.","es":""},"erroneous":true,"correction":{"fr":"","en":"Replacement for repair or maintenance does not prevent the asset from being identified (IFRS 16, para. B18).","es":""}},{"id":"S3","text":{"fr":"","en":"The distributor chooses the routes, the schedules and the goods carried: it directs how and for what purpose the trucks are used.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The distributor cannot readily determine whether the rental company's right to replace the trucks at its convenience is substantive; it presumes that it is not.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"This analysis will have to be redone at each annual reporting date.","es":""},"erroneous":true,"correction":{"fr":"","en":"The entity reassesses only if the terms and conditions of the contract are changed (IFRS 16, para. 11).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000026","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"HEALTHCARE","tested_point":"ASSET_AT_CUSTOMER_PREMISES","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"substitution"},"references":["IFRS 16 §B14","IFRS 16 §B17"],"exercise":{"prompt":{"fr":"","en":"An MRI scanner is permanently installed in a clinic's radiology department. The fact that the scanner is at the customer's premises generally makes it less likely that the supplier's right to replace it is substantive.","es":""},"explanation":{"fr":"","en":"True. When the asset is at the customer's premises, substitution costs are generally higher and more likely to exceed the benefits of replacement (IFRS 16, para. B17); and a right is substantive only if the supplier would obtain a net economic benefit from substitution (IFRS 16, para. B14).","es":""},"common_error":{"fr":"","en":"Relying on the contractual replacement clause without considering the practical cost of substitution at the customer's site.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000027","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RECOGNITION","format":"MATCHING","context":"REAL_ESTATE","tested_point":"IDENTIFIED_ASSET_SITUATIONS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"identified-asset"},"references":["IFRS 16 §B14","IFRS 16 §B18","IFRS 16 §B19","IFRS 16 §B20"],"exercise":{"prompt":{"fr":"","en":"Match each situation with the appropriate conclusion on the identified asset.","es":""},"explanation":{"fr":"","en":"Capacity portions (IFRS 16, para. B20); substitution right substantive if there is practical ability and a net economic benefit (IFRS 16, para. B14); replacement for repair has no effect (IFRS 16, para. B18); presumption that the right is not substantive when in doubt (IFRS 16, para. B19). None of these situations excludes the contract from the scope of the standard.","es":""},"common_error":{"fr":"","en":"Considering any replacement right prevents an identified asset: replacement for repair has no effect.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"A whole floor of a building, designated in the contract","es":""}},{"id":"L2","text":{"fr":"","en":"15% of the capacity of a pipeline, with no dedicated pipe","es":""}},{"id":"L3","text":{"fr":"","en":"The supplier can replace the asset at any time, has replacement assets and gains from doing so","es":""}},{"id":"L4","text":{"fr":"","en":"The supplier replaces the asset only if it breaks down","es":""}},{"id":"L5","text":{"fr":"","en":"The customer cannot readily determine whether the substitution right is substantive","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Physically distinct portion: can be an identified asset","es":""}},{"id":"R2","text":{"fr":"","en":"Non-distinct portion, far from substantially all: no identified asset","es":""}},{"id":"R3","text":{"fr":"","en":"Substantive substitution right: no identified asset","es":""}},{"id":"R4","text":{"fr":"","en":"Does not prevent the asset from being identified","es":""}},{"id":"R5","text":{"fr":"","en":"The right is presumed not to be substantive","es":""}},{"id":"R6","text":{"fr":"","en":"The contract is automatically excluded from IFRS 16","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000028","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"LEASE_DEFINITION_AND_TIMING","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS16.000004","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §9","IFRS 16 §11"],"exercise":{"prompt":{"fr":"","en":"Complete the rule.","es":""},"explanation":{"fr":"","en":"The test concerns the right to control the use of an identified asset, assessed at the inception date (IFRS 16, para. 9); it is redone only if the terms and conditions of the contract are changed (IFRS 16, para. 11). The commencement date, which comes later, is when the asset is made available.","es":""},"common_error":{"fr":"","en":"Confusing the inception date (signature, assessment of the lease) with the commencement date (asset made available).","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"To find out whether there is a lease, you look at whether the customer obtains, against payment and for a given time, the right to {{verb}} the use of an identified asset. The entity carries out this analysis at the {{date}} date; it revisits it only if {{trigger}}.","es":""},"blanks":[{"id":"verb","mode":"CHOICE","choices":[{"id":"CONTROL","text":{"fr":"","en":"control","es":""}},{"id":"MAINTAIN","text":{"fr":"","en":"maintain","es":""}},{"id":"OWN","text":{"fr":"","en":"own","es":""}}],"answer":"CONTROL"},{"id":"date","mode":"CHOICE","choices":[{"id":"INCEPTION","text":{"fr":"","en":"inception","es":""}},{"id":"COMMENCEMENT","text":{"fr":"","en":"commencement","es":""}},{"id":"REPORTING","text":{"fr":"","en":"reporting","es":""}}],"answer":"INCEPTION"},{"id":"trigger","mode":"CHOICE","choices":[{"id":"TERMS_CHANGED","text":{"fr":"","en":"the terms and conditions of the contract are changed","es":""}},{"id":"VOLUMES_CHANGED","text":{"fr":"","en":"usage volumes vary","es":""}},{"id":"NEW_PERIOD","text":{"fr":"","en":"a new financial year begins","es":""}}],"answer":"TERMS_CHANGED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000029","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"ALLOCATION_AGGREGATE_NON_LEASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000005","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"allocation-lessee"},"references":["IFRS 16 §13","IFRS 16 §14","IFRS 16 §16"],"exercise":{"prompt":{"fr":"","en":"A delivery company leases a designated electric vehicle, with a package including maintenance and tyre replacement. It has not elected the practical expedient. Allocate the annual consideration.","es":""},"explanation":{"fr":"","en":"Sum of stand-alone prices: 30,000 + 6,000 + 4,000 = 40,000. Lease component: 36,000 × 30,000 / 40,000 = 27,000. Non-lease components, taken at their aggregate stand-alone price (6,000 + 4,000 = 10,000): 36,000 × 10,000 / 40,000 = 9,000 (IFRS 16, paras. 13 and 14). The 9,000 follows other applicable Standards and does not enter the lease liability (IFRS 16, para. 16).","es":""},"common_error":{"fr":"","en":"Allocating 36,000 − 6,000 − 4,000 = 26,000 to the lease, by deducting the services' stand-alone prices instead of allocating proportionately.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual consideration paid to the lessor","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Observable stand-alone price: lease of the vehicle alone","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Observable stand-alone price: maintenance alone","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Observable stand-alone price: tyre replacement alone","es":""},"value":"4000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Sum of stand-alone prices","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Consideration allocated to the lease component","es":""},"answer":27000,"tolerance":0.5,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Consideration allocated to the non-lease components in aggregate","es":""},"answer":9000,"tolerance":0.5,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Sum of stand-alone prices","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Observable stand-alone price: lease of the vehicle alone","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Observable stand-alone price: maintenance alone","es":""},"value":6000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Observable stand-alone price: tyre replacement alone","es":""},"value":4000,"unit":"EUR"}],"result":40000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Consideration allocated to the lease component","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration paid to the lessor","es":""},"value":36000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Observable stand-alone price: lease of the vehicle alone","es":""},"value":30000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Sum of stand-alone prices","es":""},"value":40000,"unit":"EUR"}],"result":27000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Consideration allocated to the non-lease components in aggregate","es":""},"expression":"a * (b + c) / d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration paid to the lessor","es":""},"value":36000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Observable stand-alone price: maintenance alone","es":""},"value":6000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Observable stand-alone price: tyre replacement alone","es":""},"value":4000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Sum of stand-alone prices","es":""},"value":40000,"unit":"EUR"}],"result":9000,"unit":"EUR","rationale":{"fr":"","en":"Non-lease components, taken at their aggregate stand-alone price (6,000 + 4,000 = 10,000): 36,000 × 10,000 / 40,000 = 9,000 (IFRS 16, paras. 13 and 14).","es":""}}],"references":["REF.IFRS16.13","REF.IFRS16.14","REF.IFRS16.16"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000030","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"ALLOCATION_TWO_LEASE_COMPONENTS","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000005","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"numeric-example"},"references":["IFRS 16 §12","IFRS 16 §13","IFRS 16 §15","IFRS 16 §B32"],"exercise":{"prompt":{"fr":"","en":"A mobile operator leases, in a single contract, a designated rooftop space for its antennas, a designated equipment room in the basement (usable independently of the rooftop) and site maintenance. Teaching assumption: the rooftop and the room are two separate lease components. Calculate the allocation, then the amount treated as a lease if the practical expedient had been elected for this class of assets.","es":""},"explanation":{"fr":"","en":"Sum of stand-alone prices: 40,000 + 16,000 + 8,000 = 64,000. Rooftop: 60,000 × 40,000 / 64,000 = 37,500; room: 60,000 × 16,000 / 64,000 = 15,000; maintenance: 60,000 × 8,000 / 64,000 = 7,500 (IFRS 16, paras. 12 and 13). With the practical expedient, maintenance is not separated and the 60,000 is treated as a lease (IFRS 16, para. 15). The rooftop and the room are two separate lease components because each can be used on its own, without being highly dependent on the other (criterion in IFRS 16, para. B32, applied to the case assumption).","es":""},"common_error":{"fr":"","en":"Grouping the rooftop and the room into a single lease component although each can be used independently.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual consideration","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price: rooftop space","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price: equipment room","es":""},"value":"16000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price: site maintenance","es":""},"value":"8000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Share of the 'rooftop' component","es":""},"answer":37500,"tolerance":0.5,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Share of the 'equipment room' component","es":""},"answer":15000,"tolerance":0.5,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Share of maintenance (non-lease component)","es":""},"answer":7500,"tolerance":0.5,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Annual amount treated as a lease with the practical expedient","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Share of the 'rooftop' component","es":""},"expression":"a * b / (b + c + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stand-alone price: rooftop space","es":""},"value":40000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price: equipment room","es":""},"value":16000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Stand-alone price: site maintenance","es":""},"value":8000,"unit":"EUR"}],"result":37500,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Share of the 'equipment room' component","es":""},"expression":"a * b / (c + b + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stand-alone price: equipment room","es":""},"value":16000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price: rooftop space","es":""},"value":40000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Stand-alone price: site maintenance","es":""},"value":8000,"unit":"EUR"}],"result":15000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Share of maintenance (non-lease component)","es":""},"expression":"a * b / (c + d + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stand-alone price: site maintenance","es":""},"value":8000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price: rooftop space","es":""},"value":40000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Stand-alone price: equipment room","es":""},"value":16000,"unit":"EUR"}],"result":7500,"unit":"EUR"}],"references":["REF.IFRS16.12","REF.IFRS16.13","REF.IFRS16.15","REF.IFRS16.B32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000031","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"LEASE_VS_NON_LEASE_COMPONENT","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IFRS16.000005","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §12","IFRS 16 §B32"],"exercise":{"prompt":{"fr":"","en":"A consulting firm signs a global contract with the owner of an office building. Classify each item in the contract.","es":""},"explanation":{"fr":"","en":"Each right to use an asset from which the lessee can benefit on its own, with no high dependence on the other assets, is a separate lease component (IFRS 16, para. B32). Services (cleaning, reception, maintenance) are non-lease components, accounted for separately unless the practical expedient is applied (IFRS 16, para. 12).","es":""},"common_error":{"fr":"","en":"Treating services such as cleaning or reception as lease components: they are non-lease components.","es":""},"format":"CLASSIFICATION","categories":[{"id":"LEASE","text":{"fr":"","en":"Lease component","es":""}},{"id":"NON_LEASE","text":{"fr":"","en":"Non-lease component","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The third floor, designated","es":""},"category":"LEASE"},{"id":"I2","text":{"fr":"","en":"Ten designated parking spaces, usable independently of the offices","es":""},"category":"LEASE"},{"id":"I3","text":{"fr":"","en":"A designated archive cellar","es":""},"category":"LEASE"},{"id":"I4","text":{"fr":"","en":"Daily cleaning of the offices","es":""},"category":"NON_LEASE"},{"id":"I5","text":{"fr":"","en":"Reception of visitors by the owner's staff","es":""},"category":"NON_LEASE"},{"id":"I6","text":{"fr":"","en":"Maintenance of the air-conditioning system","es":""},"category":"NON_LEASE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000032","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.COMBINATION","IFRS16.COMPONENTS.SEPARATION"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"RETAIL","tested_point":"COMBINE_THEN_ALLOCATE","difficulty":"ADVANCED","estimated_time_s":480,"lesson_id":"LS.IFRS16.000005","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"combination"},"references":["IFRS 16 §B2","IFRS 16 §13","IFRS 16 §14","IFRS 16 §15","IFRS 16 §16"],"exercise":{"prompt":{"fr":"","en":"Analyse the two contracts signed by Maisonia with LogiParc.","es":""},"explanation":{"fr":"","en":"Combine first (IFRS 16, para. B2), then allocate the total consideration on the basis of stand-alone prices (IFRS 16, para. 13): the lease component is 93,750, not the 80,000 of the lease contract taken in isolation.","es":""},"common_error":{"fr":"","en":"Using the contractual rent of 80,000 as the lease payment, without combining or allocating.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Maisonia, a furniture retailer, signs on the same day with LogiParc: (1) the lease of a designated warehouse, for 80,000 a year; (2) a contract for handling goods in that warehouse, for 70,000 a year. The negotiation letter states that the warehouse rent benefits from a 20% discount granted only because Maisonia takes out the handling contract. Maisonia has not elected the practical expedient for buildings (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Observable stand-alone prices (case data)","es":""},"body":{"fr":"","en":"Lease of a comparable warehouse, alone: 100,000 a year. Comparable handling service, alone: 60,000 a year.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Must the two contracts be combined?","es":""},"explanation":{"fr":"","en":"Contracts entered into at the same time with the same counterparty, where the consideration of one depends on the other: they are combined and treated as a single contract (IFRS 16, para. B2).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: same counterparty, same day, and the price of one depends on the other.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: one covers an asset, the other a service.","es":""},"correct":false,"feedback":{"fr":"","en":"The different nature of the contracts does not prevent combination; the criteria concern negotiation and price interdependence.","es":""}},{"id":"C","text":{"fr":"","en":"No: combination is only an option, like the portfolio approach.","es":""},"correct":false,"feedback":{"fr":"","en":"The portfolio is an option; combination, by contrast, is required as soon as a criterion is met.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Allocate the total consideration of the combined contract.","es":""},"explanation":{"fr":"","en":"Total consideration: 80,000 + 70,000 = 150,000. Sum of stand-alone prices: 100,000 + 60,000 = 160,000. Warehouse: 150,000 × 100,000 / 160,000 = 93,750; handling: 150,000 × 60,000 / 160,000 = 56,250 (IFRS 16, paras. 13 and 14). Combination corrects the artificially low rent of 80,000.","es":""},"common_error":{"fr":"","en":"Keeping the 80,000 contractual rent for the lease: total consideration is allocated by relative stand-alone prices.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Total annual consideration","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Share of the lease component (warehouse)","es":""},"answer":93750,"tolerance":0.5,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Share of handling (non-lease component)","es":""},"answer":56250,"tolerance":0.5,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total annual consideration","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"for 80,000 a year","es":""},"value":80000},{"symbol":"b","meaning":{"fr":"","en":"for 70,000 a year","es":""},"value":70000}],"result":150000,"unit":"EUR"}],"references":["REF.IFRS16.13","REF.IFRS16.14"]}},{"prompt":{"fr":"","en":"How does Maisonia account for the 56,250 allocated to handling?","es":""},"explanation":{"fr":"","en":"Unless the practical expedient in para. 15 is applied, the lessee accounts for non-lease components under other applicable Standards (IFRS 16, para. 16).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under other applicable Standards, outside the lease liability","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In the lease liability, together with the warehouse rent","es":""},"correct":false,"feedback":{"fr":"","en":"That would be the case with the practical expedient, which Maisonia has not elected for buildings.","es":""}},{"id":"C","text":{"fr":"","en":"As a reduction of the cost of the right-of-use asset","es":""},"correct":false,"feedback":{"fr":"","en":"Handling is a separate non-lease component; it does not change the cost of the right-of-use asset.","es":""}}],"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Had Maisonia elected the practical expedient for the buildings class, and treating handling as associated with the warehouse lease (teaching assumption), the 150,000 would have been treated as a single lease component.","es":""},"explanation":{"fr":"","en":"True. The lessee may elect, by class of underlying asset, to account for each lease component and the associated non-lease components as a single lease component (IFRS 16, para. 15).","es":""},"common_error":{"fr":"","en":"Believing the expedient is chosen contract by contract: the choice is made by class of underlying asset.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000033","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"ENERGY","tested_point":"EXPEDIENT_EMBEDDED_DERIVATIVE_EXCLUSION","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS16.000005","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"practical-expedient"},"references":["IFRS 16 §15"],"exercise":{"prompt":{"fr":"","en":"A lessee has elected the practical expedient for its leased cogeneration units. It also applies it to an embedded derivative in the contract that meets the criteria in IFRS 9, para. 4.3.3.","es":""},"explanation":{"fr":"","en":"False. The practical expedient not to separate does not apply to embedded derivatives that meet the criteria in IFRS 9, para. 4.3.3 (IFRS 16, para. 15).","es":""},"common_error":{"fr":"","en":"Believing the expedient absorbs every item in the contract, including separable embedded derivatives.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000034","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"HEALTHCARE","tested_point":"COMPONENTS_POLICY_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS16.000005","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"pitfalls"},"references":["IFRS 16 §13","IFRS 16 §14","IFRS 16 §15","IFRS 16 §16","IFRS 16 §17"],"exercise":{"prompt":{"fr":"","en":"A clinic leases an MRI scanner with its maintenance. Spot the errors in its accounting department's memo.","es":""},"explanation":{"fr":"","en":"S2 and S5 are correct (IFRS 16, paras. 14 and 16). S1, S3 and S4 misread the allocation basis, the level at which the expedient is elected and the fact that it is reserved for the lessee.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The consideration is allocated according to the amounts on the lessor's invoice: 70% lease, 30% maintenance.","es":""},"erroneous":true,"correction":{"fr":"","en":"Allocation is based on the relative stand-alone prices of the components, not on the invoiced amounts (IFRS 16, paras. 13 and 14).","es":""}},{"id":"S2","text":{"fr":"","en":"As there is no observable price for maintenance, the clinic estimates it by maximising observable information.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The clinic applies the practical expedient to this MRI scanner, but not to the two other identical MRI scanners it leases.","es":""},"erroneous":true,"correction":{"fr":"","en":"The election is made by class of underlying asset, not item by item (IFRS 16, para. 15).","es":""}},{"id":"S4","text":{"fr":"","en":"The lessor will also be able to elect not to separate the maintenance from the lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"The expedient is not available to the lessor, which allocates the consideration under the IFRS 15 allocation requirements (IFRS 16, para. 17).","es":""}},{"id":"S5","text":{"fr":"","en":"Without the practical expedient, the amount allocated to maintenance is accounted for under other applicable Standards.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000035","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"CONSTRUCTION","tested_point":"HIGHLY_DEPENDENT_ASSETS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS16.000005","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §12","IFRS 16 §B32"],"exercise":{"prompt":{"fr":"","en":"A construction company leases a designated crane and the counterweight system designed specifically for it. The crane cannot work without that system, which cannot be used with any other machine. How many lease components does the contract contain?","es":""},"explanation":{"fr":"","en":"A right of use is a separate lease component only if the lessee can benefit from the asset on its own or with readily available resources, and the asset is neither highly dependent on nor highly interrelated with the other assets in the contract (IFRS 16, paras. 12 and B32). Here, the two assets cannot be separated.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Two, since the contract covers two assets","es":""},"correct":false,"feedback":{"fr":"","en":"An asset that is highly dependent on, or highly interrelated with, the other assets in the contract does not form a separate lease component.","es":""}},{"id":"B","text":{"fr":"","en":"One: crane and counterweight form a single lease component","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"One lease component (the crane) and one non-lease component (the counterweight)","es":""},"correct":false,"feedback":{"fr":"","en":"The counterweight is an asset the lessee obtains the use of, not a service: it is not a non-lease component.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000036","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"TERM_NOT_LIMITED_TO_FIRM_PERIOD","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §18"],"exercise":{"prompt":{"fr":"","en":"The lease term is always limited to the non-cancellable period written in the lease.","es":""},"explanation":{"fr":"","en":"False. The term also includes periods covered by an extension option the lessee is reasonably certain to exercise, and those covered by a termination option it is reasonably certain not to exercise (IFRS 16, para. 18).","es":""},"common_error":{"fr":"","en":"Copying the firm legal term of the lease without analysing the options.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000037","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"LOGISTICS","tested_point":"REASSESS_VS_REVISE_TRIGGERS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"reassessment-triggers"},"references":["IFRS 16 §20","IFRS 16 §21","IFRS 16 §B41"],"exercise":{"prompt":{"fr":"","en":"A logistics company leases a hub for 6 years, with a 4-year extension option that it did not include in the term. Classify each event that occurs afterwards.","es":""},"explanation":{"fr":"","en":"Significant unanticipated improvements and a sublease beyond the term previously determined are events within the lessee's control that require reassessment (IFRS 16, paras. 20 and B41). Actually exercising an option not included, or being contractually obliged to exercise it, changes the non-cancellable period: the term is revised (IFRS 16, para. 21). Market changes are not within the lessee's control.","es":""},"common_error":{"fr":"","en":"Reassessing the term as soon as the market moves, or confusing the actual exercise of an option with a mere reassessment.","es":""},"format":"CLASSIFICATION","categories":[{"id":"REASSESS","text":{"fr":"","en":"Reassessment of reasonable certainty (para. 20)","es":""}},{"id":"REVISE","text":{"fr":"","en":"Revision of the term: the non-cancellable period changes (para. 21)","es":""}},{"id":"NONE","text":{"fr":"","en":"Neither","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The lessee makes significant improvements, not anticipated at the outset, useful well beyond year 6.","es":""},"category":"REASSESS"},{"id":"I2","text":{"fr":"","en":"The lessee subleases part of the hub for a period that extends beyond year 6.","es":""},"category":"REASSESS"},{"id":"I3","text":{"fr":"","en":"Market rents for logistics hubs in the region fall by 15%.","es":""},"category":"NONE"},{"id":"I4","text":{"fr":"","en":"The lessee actually exercises the extension option that had not been included.","es":""},"category":"REVISE"},{"id":"I5","text":{"fr":"","en":"An event provided for in the contract obliges the lessee to exercise the option not included.","es":""},"category":"REVISE"},{"id":"I6","text":{"fr":"","en":"Market interest rates rise sharply.","es":""},"category":"NONE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000038","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"LEASE_TERM_METHOD_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"how"},"references":["IFRS 16 §18","IFRS 16 §19","IFRS 16 §20","IFRS 16 §B35","IFRS 16 §B36"],"exercise":{"prompt":{"fr":"","en":"Put the steps for determining the term of a lease in order.","es":""},"explanation":{"fr":"","en":"The term starts at the commencement date, rent-free periods included (IFRS 16, para. B36); the options are analysed according to who holds them (IFRS 16, para. B35) and then in the light of economic incentives (IFRS 16, para. 19) to set the term (IFRS 16, para. 18); afterwards, only certain events require it to be revisited (IFRS 16, para. 20).","es":""},"common_error":{"fr":"","en":"Concluding on the term before listing the options and the lessee's economic incentives.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Set the commencement date and the non-cancellable period, rent-free periods included","es":""}},{"id":"S2","text":{"fr":"","en":"List the options and the party that holds each of them","es":""}},{"id":"S3","text":{"fr":"","en":"Gather, for each of the lessee's options, the facts creating an economic incentive","es":""}},{"id":"S4","text":{"fr":"","en":"Conclude on the term and document the reasoning","es":""}},{"id":"S5","text":{"fr":"","en":"Monitor events within the lessee's control and changes in the non-cancellable period","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000039","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"LESSEE_ONLY_TERMINATION_OPTION","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"enforceability"},"references":["IFRS 16 §18","IFRS 16 §19","IFRS 16 §B35"],"exercise":{"prompt":{"fr":"","en":"An operator leases a designated antenna site for 10 years. Only the operator may terminate the contract, without penalty, at the end of year 5. How is the term determined?","es":""},"explanation":{"fr":"","en":"When only the lessee can terminate, that right is a termination option to be considered in determining the term (IFRS 16, para. B35). Years 6 to 10 are included if the lessee is reasonably certain not to exercise the option (IFRS 16, para. 18), in the light of the facts creating an economic incentive (IFRS 16, para. 19).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"10 years in all cases: the non-cancellable period is 10 years.","es":""},"correct":false,"feedback":{"fr":"","en":"That would be the case if only the lessor could terminate. A right held only by the lessee is a termination option to be analysed.","es":""}},{"id":"B","text":{"fr":"","en":"Non-cancellable period of 5 years; years 6 to 10 are included only if the operator is reasonably certain not to terminate.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"5 years in all cases, since the operator can leave without penalty.","es":""},"correct":false,"feedback":{"fr":"","en":"The termination option must be analysed: if the operator is reasonably certain not to exercise it, years 6 to 10 are part of the term.","es":""}},{"id":"D","text":{"fr":"","en":"10 years, as long as management states that it does not intend to terminate.","es":""},"correct":false,"feedback":{"fr":"","en":"A statement of intent is not enough: facts creating an economic incentive not to terminate are required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000040","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"LOGISTICS","tested_point":"TERM_EFFECT_ON_LIABILITY","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"numeric-example"},"references":["IFRS 16 §18"],"exercise":{"prompt":{"fr":"","en":"A transport company leases a hangar: non-cancellable period of 3 years and a 2-year extension option at the same rent. Calculate the lease liability at the commencement date depending on whether the option is excluded from or included in the term, then the difference (rounded to the cent; tolerance of EUR 1).","es":""},"explanation":{"fr":"","en":"Factors 1/1.06^t: 0.943396; 0.889996; 0.839619; 0.792094; 0.747258. Over 3 years: 20,000 × (1 − 1.06^−3) / 0.06 = 53,460.24. Over 5 years: 20,000 × (1 − 1.06^−5) / 0.06 = 84,247.28. Difference: 30,787.04. The term used (IFRS 16, para. 18) changes the liability by more than 57%; the rate and the payment pattern are case data.","es":""},"common_error":{"fr":"","en":"Adding up the payments without discounting them (60,000 and 100,000), which overstates the liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual rent, paid at year-end","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (case data)","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Non-cancellable period","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Period covered by the extension option","es":""},"value":"2","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Lease liability if the option is excluded (3 years)","es":""},"answer":53460.24,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Lease liability if the option is included (5 years)","es":""},"answer":84247.28,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Difference due to the judgement on the option","es":""},"answer":30787.04,"tolerance":1,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000041","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"LEASE_TERM_MEMO_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"pitfalls"},"references":["IFRS 16 §19","IFRS 16 §20","IFRS 16 §B35","IFRS 16 §B37","IFRS 16 §B40"],"exercise":{"prompt":{"fr":"","en":"A convenience store chain documents the term of its leases. Spot the incorrect statements in the memo.","es":""},"explanation":{"fr":"","en":"S4 and S5 are correct: past practice may inform the assessment (IFRS 16, para. B40) and significant improvements are a fact creating an economic incentive (IFRS 16, para. B37). S1, S2 and S3 misread the trigger for reassessment, the rule for a termination right held only by the lessor and the nature of reasonable certainty.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"As town-centre market rents have fallen, we are reassessing the term of all leases at the reporting date.","es":""},"erroneous":true,"correction":{"fr":"","en":"Only a significant event within the lessee's control triggers reassessment; a market change is not (IFRS 16, para. 20).","es":""}},{"id":"S2","text":{"fr":"","en":"In the station store lease, the termination right held only by the lessor reduces the non-cancellable period.","es":""},"erroneous":true,"correction":{"fr":"","en":"If only the lessor can terminate, the period covered by that right is part of the non-cancellable period (IFRS 16, para. B35).","es":""}},{"id":"S3","text":{"fr":"","en":"An option is included as soon as its exercise is more likely than not.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard requires reasonable certainty, assessed on all the facts creating an economic incentive; it does not define it as a probability percentage (IFRS 16, para. 19).","es":""}},{"id":"S4","text":{"fr":"","en":"We took into account the fact that our convenience stores stay at the same location for fifteen years on average.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"For the store refurbished last year, the significant improvements that will still have value at the option date were taken into account as an incentive to extend.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000042","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"HOSPITALITY","tested_point":"ECONOMIC_INCENTIVE_FACTORS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"reasonably-certain"},"references":["IFRS 16 §19","IFRS 16 §B37"],"exercise":{"prompt":{"fr":"","en":"A hotel group leases a hotel for 8 years, with a 6-year extension option. Which facts create an economic incentive to exercise the option?","es":""},"explanation":{"fr":"","en":"Reasonable certainty is assessed on the facts creating an economic incentive (IFRS 16, para. 19), in particular the option terms compared with market, significant improvements, the costs of leaving and the importance of the asset to the business (IFRS 16, para. B37).","es":""},"common_error":{"fr":"","en":"Treating management's stated intention as sufficient evidence.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rent for the optional period is well below the expected market rent.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The group funded a full refurbishment whose useful life extends well beyond 8 years.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The hotel is the brand's flagship and leaving would cause a long business interruption.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The CFO states that the group 'would like to stay', with no other evidence.","es":""},"correct":false,"feedback":{"fr":"","en":"A stated intention is not an economic fact; on its own, it creates no incentive.","es":""}},{"id":"E","text":{"fr":"","en":"Euro-area interest rates fell during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"This general fact says nothing about the lessee's interest in staying in this hotel.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000043","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"RETAIL","tested_point":"TERM_AT_COMMENCEMENT_AND_REASSESSMENT","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"judgment"},"references":["IFRS 16 §18","IFRS 16 §19","IFRS 16 §20","IFRS 16 §B37","IFRS 16 §B41"],"exercise":{"prompt":{"fr":"","en":"Follow the term of the Calista shop lease over several years.","es":""},"explanation":{"fr":"","en":"The initial term of 5 years reflects the absence of an economic incentive (IFRS 16, paras. 18 and 19). It is not called into question by the market (IFRS 16, para. 20), but must be reassessed after the decision, within Calista's control, to undertake significant unanticipated improvements (IFRS 16, para. B41).","es":""},"common_error":{"fr":"","en":"Reassessing in year 2 because of the market, then doing nothing in year 3.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Calista, a fashion retailer, leases a town-centre shop: non-cancellable period of 5 years, 5-year extension option at the then market rent. At the commencement date, it makes minor improvements (20,000, useful life 5 years); several equivalent premises are available in the same street and moving would be inexpensive (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Later events (case data)","es":""},"body":{"fr":"","en":"Year 2: market rents in the street fall by 10%. Year 3: management decides, without this having been envisaged at the outset, to turn the shop into a flagship store: works of 600,000, with a useful life of 12 years.","es":""}}],"parts":[{"prompt":{"fr":"","en":"What term does Calista use at the commencement date?","es":""},"explanation":{"fr":"","en":"With no fact creating an economic incentive to exercise the option (IFRS 16, paras. 19 and B37), the term is limited to the non-cancellable period of 5 years (IFRS 16, para. 18). This conclusion remains a judgement based on the case data.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"5 years","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"10 years","es":""},"correct":false,"feedback":{"fr":"","en":"No fact creates an economic incentive to extend: option at market price, modest improvements used up within 5 years, alternatives available.","es":""}},{"id":"C","text":{"fr":"","en":"7 and a half years, halfway","es":""},"correct":false,"feedback":{"fr":"","en":"The term is not calculated by weighting probabilities: an optional period is either included in full or excluded.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"In year 2, the 10% fall in market rents requires Calista to reassess whether it is reasonably certain to exercise the option.","es":""},"explanation":{"fr":"","en":"False. A market change is not an event within the lessee's control; it does not trigger reassessment (IFRS 16, para. 20).","es":""},"common_error":{"fr":"","en":"Reassessing the term after market rents fall: it is not an event within the lessee's control.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"In year 3, what is the consequence of the decision to transform the shop?","es":""},"explanation":{"fr":"","en":"Significant improvements not anticipated at the commencement date, that will give a significant economic benefit when the option becomes exercisable, are an event within the lessee's control that requires reassessment (IFRS 16, paras. 20 and B41). The conclusion (whether to include the option) remains a judgement; the effects on the lease liability are covered in the lesson on remeasurement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: the term was fixed once and for all at the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"The term is reassessed when a significant event within the lessee's control affects reasonable certainty.","es":""}},{"id":"B","text":{"fr":"","en":"Calista reassesses whether it is reasonably certain to exercise the extension option.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Calista revises the term, because the non-cancellable period has changed.","es":""},"correct":false,"feedback":{"fr":"","en":"The non-cancellable period has not changed: no option has been exercised. This is a reassessment, not a revision.","es":""}}],"id":"P3","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Which items should Calista put in the year 3 reassessment file?","es":""},"explanation":{"fr":"","en":"The file documents the triggering event (IFRS 16, para. B41), the economic incentive it creates, in particular the value of the improvements at the exercise date (IFRS 16, para. B37), and the conclusion. This file structure is good practice, not a detailed requirement of the standard.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Management's decision and the budget for the 600,000 works","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The analysis of the value the works will still have at the option exercise date","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The reasoned conclusion on including the optional period","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A recalculation of the term based on the fall in rents in year 2","es":""},"correct":false,"feedback":{"fr":"","en":"The market fall does not trigger reassessment; it should not be the basis for recalculating the term.","es":""}}],"id":"P4","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000044","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"REASONABLY_CERTAIN_EXTENSION_MEASURED","difficulty":"EXPERT","estimated_time_s":540,"lesson_id":"LS.IFRS16.000006","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"reasonably-certain"},"references":["IFRS 16 §18","IFRS 16 §19","IFRS 16 §20","IFRS 16 §B37","IFRS 16 §B39","IFRS 16 §B41"],"exercise":{"prompt":{"fr":"","en":"Determine the lease term for Mecanova's robotic cell and measure the effect of that judgement.","es":""},"explanation":{"fr":"","en":"Several converging facts create an economic incentive to extend (IFRS 16, paras. B37 and B39): using 7 years is a defensible judgement, which takes the liability from 138,754.55 to 300,102.73. The judgement must be reassessed if a business decision within the lessee's control calls it into question (IFRS 16, paras. 20 and B41).","es":""},"common_error":{"fr":"","en":"Using 3 years because extension is not legally required, without examining the economic incentives.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Mecanova, an automotive supplier, leases a robotic welding cell: non-cancellable period of 3 years, then a single 4-year extension option at the same rent, about 20% below the expected market rent. The cell has been integrated and configured on Mecanova's line; moving or replacing it would stop production for about six months. Mecanova has just signed a 7-year supply contract with a carmaker, served by this cell. Rent: 50,000 a year, the same in the firm period and the optional period, paid at year-end; discount rate: 4% (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"Which facts create an economic incentive to exercise the option?","es":""},"explanation":{"fr":"","en":"Option terms compared with market, costs of replacement and the importance of the asset to the business are facts creating an economic incentive (IFRS 16, paras. 19 and B37). The short firm period (3 years) also makes extension more likely (IFRS 16, para. B39). The conclusion — including the option — is a matter of professional judgement.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rent for the optional period, about 20% below market","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The six months of production stoppage a replacement would cause","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The 7-year supply contract served by the cell","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The depreciation method the lessor uses for the cell in its own accounts","es":""},"correct":false,"feedback":{"fr":"","en":"This is an accounting matter for the lessor, which creates no incentive for the lessee.","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the lease liability at the commencement date under both term assumptions (rounded to the cent; tolerance of EUR 1).","es":""},"explanation":{"fr":"","en":"The 50,000 rent also applies to the optional period (case data). 3 years: 50,000 × (1 − 1.04^−3) / 0.04 = 50,000 × 2.775091 = 138,754.55. 7 years: 50,000 × (1 − 1.04^−7) / 0.04 = 50,000 × 6.0020547 = 300,102.73. Including the option more than doubles the liability (IFRS 16, para. 18).","es":""},"common_error":{"fr":"","en":"Discounting over the non-cancellable period only when the option is reasonably certain, or using the wrong annuity factor.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"3-year term (option excluded)","es":""},"answer":138754.55,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"7-year term (option included)","es":""},"answer":300102.73,"tolerance":1,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"3-year term (option excluded)","es":""},"expression":"a * ((1 - 1 / (1 + b)^3) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Rent: 50,000","es":""},"value":50000},{"symbol":"b","meaning":{"fr":"","en":"discount rate: 4%","es":""},"value":4,"unit":"PERCENT"}],"result":138754.55,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"7-year term (option included)","es":""},"expression":"a * ((1 - 1 / (1 + b)^7) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Rent: 50,000","es":""},"value":50000},{"symbol":"b","meaning":{"fr":"","en":"discount rate: 4%","es":""},"value":4,"unit":"PERCENT"}],"result":300102.73,"unit":"EUR"}],"rationale":{"fr":"","en":"Including the option more than doubles the liability (IFRS 16, para. 18).","es":""},"references":["REF.IFRS16.18"]}},{"prompt":{"fr":"","en":"Mecanova used 7 years. In year 2, its board decides to move this production to another plant at the end of year 3. This decision requires the term to be reassessed.","es":""},"explanation":{"fr":"","en":"True. A business decision directly relevant to exercising or not exercising an option is an event within the lessee's control that requires reasonable certainty to be reassessed (IFRS 16, paras. 20 and B41).","es":""},"common_error":{"fr":"","en":"Waiting until the end of year 3 to revisit the term: the board's decision, within the lessee's control, requires reassessment.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000045","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"LIABILITY_PV_ARREARS","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"numeric-example"},"references":["IFRS 16 §26","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"Case data: a clothing retailer leases a shop. Lease term: 4 years, with no reasonably certain option. Fixed payments of 25,000 made at the end of each year. The implicit rate cannot be readily determined. Calculate the lease liability at the commencement date (round to the cent).","es":""},"explanation":{"fr":"","en":"Incremental borrowing rate (implicit rate not determinable): 4% (IFRS 16, para. 26). Present values: 25,000 / 1.04 = 24,038.46; 23,113.91; 22,224.91; 21,370.10; total 90,747.38. Future interest: 100,000 − 90,747.38 = 9,252.62. Only the fixed payments not yet made enter the liability (IFRS 16, para. 27(a)).","es":""},"common_error":{"fr":"","en":"Using 100,000 (sum of undiscounted payments) as the lease liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual payment (year end)","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Number of payments","es":""},"value":"4","unit":"UNITS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value of the year 1 payment","es":""},"answer":24038.46,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Lease liability at the commencement date","es":""},"answer":90747.38,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total interest to be recognised over the lease term","es":""},"answer":9252.62,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value of the year 1 payment","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment (year end)","es":""},"value":25000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":4,"unit":"PERCENT"}],"result":24038.46,"unit":"EUR"}],"references":["REF.IFRS16.26","REF.IFRS16.27"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000046","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"LIABILITY_PV_ADVANCE","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"numeric-example"},"references":["IFRS 16 §26","IFRS 16 §27","IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"Case data: an electricity producer leases a mobile transformer for 3 years. Fixed payments of 60,000 made at the BEGINNING of each year, the first at the commencement date. Incremental borrowing rate: 6% (implicit rate not determinable). Determine the lease liability at the commencement date.","es":""},"explanation":{"fr":"","en":"The payment made at the commencement date is no longer owed: it does not enter the liability (present value of payments not yet paid, IFRS 16, para. 26) but the cost of the right-of-use asset (IFRS 16, para. 24(b)). Two payments remain, made in 1 and 2 years: 60,000 / 1.06 + 60,000 / 1.06² = 56,603.77 + 53,399.79 = 110,003.56. Only the lease payments not yet paid at the commencement date enter the liability (IFRS 16, para. 27).","es":""},"common_error":{"fr":"","en":"Discounting all 3 payments as if in arrears (160,380.72) or including the first, undiscounted payment (170,003.56) in the liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual payment (start of year)","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Number of payments","es":""},"value":"3","unit":"UNITS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Number of payments included in the liability","es":""},"answer":2,"tolerance":0,"unit":"UNITS"},{"id":"S2","label":{"fr":"","en":"Lease liability at the commencement date","es":""},"answer":110003.56,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Payment made at the commencement date, outside the liability (added to the cost of the asset)","es":""},"answer":60000,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Lease liability at the commencement date","es":""},"expression":"a / (1 + b) + a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment (start of year)","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":6,"unit":"PERCENT"}],"result":110003.56,"unit":"EUR"}],"rationale":{"fr":"","en":"The payment made at the commencement date is no longer owed: it does not enter the liability (present value of payments not yet paid, IFRS 16, para. 26) but the cost of the right-of-use asset (IFRS 16, para. 24(b)).","es":""},"references":["REF.IFRS16.26","REF.IFRS16.27","REF.IFRS16.24"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000047","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"RESIDUAL_VALUE_GUARANTEE_EXPECTED","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"Case data: a telecom operator leases network equipment for 3 years, fixed payments of 30,000 at year end. It guarantees the lessor that the equipment will be worth at least 20,000 at the end; it expects it to be worth 15,000. Incremental borrowing rate: 5%. Calculate the lease liability.","es":""},"explanation":{"fr":"","en":"The guarantee enters at the amount the lessee expects to pay: 20,000 − 15,000 = 5,000 (IFRS 16, para. 27(c)), payable at the end of year 3. Payments: 30,000 × (0.952381 + 0.907029 + 0.863838) = 81,697.44; guarantee: 5,000 / 1.05³ = 4,319.19; liability: 86,016.63 (IFRS 16, para. 26).","es":""},"common_error":{"fr":"","en":"Discounting the full guaranteed value of 20,000 (liability of 98,974.19) instead of the expected amount only.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual payment (year end)","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Guaranteed residual value","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Expected value at the end","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Amount expected under the guarantee","es":""},"answer":5000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of the fixed payments","es":""},"answer":81697.44,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Present value of the amount expected under the guarantee","es":""},"answer":4319.19,"tolerance":0.05,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Lease liability","es":""},"answer":86016.63,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Amount expected under the guarantee","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Guaranteed residual value","es":""},"value":20000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected value at the end","es":""},"value":15000,"unit":"EUR"}],"result":5000,"unit":"EUR","rationale":{"fr":"","en":"The guarantee enters at the amount the lessee expects to pay: 20,000 − 15,000 = 5,000 (IFRS 16, para. 27(c)), payable at the end of year 3.","es":""}},{"step":"S3","meaning":{"fr":"","en":"Present value of the amount expected under the guarantee","es":""},"expression":"a / (1 + b)^3","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount expected under the guarantee","es":""},"value":5000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":5,"unit":"PERCENT"}],"result":4319.19,"unit":"EUR"}],"references":["REF.IFRS16.26","REF.IFRS16.27"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000048","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"PURCHASE_OPTION_REASONABLY_CERTAIN","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"Case data: a company leases a packing machine for 4 years, fixed payments of 50,000 at year end. A purchase option of 10,000 can be exercised at the end; given its price, well below the machine's expected value, the lessee is reasonably certain to exercise it (documented judgement). Incremental borrowing rate: 6%. Calculate the lease liability.","es":""},"explanation":{"fr":"","en":"The price of a reasonably certain purchase option enters the liability (IFRS 16, para. 27(d)). Payments: 50,000 / 1.06 + 50,000 / 1.06² + 50,000 / 1.06³ + 50,000 / 1.06⁴ = 173,255.28; option: 10,000 / 1.06⁴ = 7,920.94; total 181,176.22 (IFRS 16, para. 26). The right-of-use asset will then be depreciated over the machine's useful life (lesson 000009).","es":""},"common_error":{"fr":"","en":"Ignoring the purchase option (173,255.28) or adding it undiscounted (183,255.28).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual payment (year end)","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Purchase option exercise price (end of year 4)","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value of the payments","es":""},"answer":173255.28,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of the exercise price","es":""},"answer":7920.94,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Lease liability","es":""},"answer":181176.22,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value of the payments","es":""},"expression":"a / (1 + b) + a / (1 + b)^2 + a / (1 + b)^3 + a / (1 + b)^4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment (year end)","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":6,"unit":"PERCENT"}],"result":173255.28,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Present value of the exercise price","es":""},"expression":"a / (1 + b)^4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Purchase option exercise price (end of year 4)","es":""},"value":10000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":6,"unit":"PERCENT"}],"result":7920.94,"unit":"EUR"}],"references":["REF.IFRS16.26","REF.IFRS16.27"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000049","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"HOSPITALITY","tested_point":"INITIAL_ENTRY_ARREARS","difficulty":"BEGINNER","estimated_time_s":150,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"entry"},"references":["IFRS 16 §22","IFRS 16 §27","IFRS 16 §38","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Case data: a hotel leases laundry machines for 3 years, fixed payments of 18,000 at year end, plus 0.10 per kilo of linen processed. Incremental borrowing rate: 5%; calculated liability: 49,018.46. No other costs. Record the entry at the commencement date.","es":""},"explanation":{"fr":"","en":"At the commencement date, the hotel recognises a right-of-use asset and a lease liability of 49,018.46 (18,000 / 1.05 + 18,000 / 1.05² + 18,000 / 1.05³) (IFRS 16, paras. 22 and 26). The per-kilo fee depends on use: it does not enter the liability and will be an expense of the periods concerned (IFRS 16, paras. 27 and 38). No expense and no cash at that date.","es":""},"common_error":{"fr":"","en":"Recording nothing until the first payment, or recognising a lease expense at the commencement date.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"LEASE_EXPENSE","text":{"fr":"","en":"Lease expense","es":""}},{"id":"ACCRUED_EXPENSES","text":{"fr":"","en":"Accrued expenses","es":""}}],"lines":[{"id":"L1","account":"ROU_ASSET","side":"DEBIT","amount":49018.46},{"id":"L2","account":"LEASE_LIABILITY","side":"CREDIT","amount":49018.46,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000050","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"RVG_INSIDE_LIABILITY_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §22","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"Case data: the telecom operator of the previous exercise calculated a liability of 86,016.63, of which 81,697.44 for the fixed payments and 4,319.19 for the amount expected under the residual value guarantee. No other costs. Record the entry at the commencement date.","es":""},"explanation":{"fr":"","en":"The amount expected under the residual value guarantee is a lease payment included in the lease liability (IFRS 16, para. 27(c)); it is not recognised as a separate provision. Entry: right-of-use asset 86,016.63 / lease liability 86,016.63 (IFRS 16, para. 22).","es":""},"common_error":{"fr":"","en":"Crediting 81,697.44 to the liability and 4,319.19 to a guarantee provision.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"GUARANTEE_PROVISION","text":{"fr":"","en":"Provision for residual value guarantee","es":""}},{"id":"LEASE_EXPENSE","text":{"fr":"","en":"Lease expense","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"ROU_ASSET","side":"DEBIT","amount":86016.63},{"id":"L2","account":"LEASE_LIABILITY","side":"CREDIT","amount":86016.63}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000051","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"PAYMENTS_INCLUDED_EXCLUDED","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26","IFRS 16 §27","IFRS 16 §28","IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"A supermarket chain analyses the lease of a store (lease term used: 9 years). Classify each clause: does it enter the lease liability at the commencement date?","es":""},"explanation":{"fr":"","en":"In: the fixed rent (para. 27(a)), the indexed rent, measured at the commencement-date index (paras. 27(b) and 28), and the termination penalty when the term reflects exercise of the option (para. 27(e)). Out: the revenue-based rent, an expense of the period (IFRS 16, para. 38), and the rent already paid, which goes to the cost of the asset as the liability only includes payments not yet made (IFRS 16, para. 26).","es":""},"common_error":{"fr":"","en":"Including the sales-based rent or the rent already paid in the lease liability.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INCLUDED","text":{"fr":"","en":"In the liability","es":""}},{"id":"EXCLUDED","text":{"fr":"","en":"Outside the liability","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Base rent of 120,000 a year","es":""},"category":"INCLUDED"},{"id":"I2","text":{"fr":"","en":"Annual indexation of the base rent to the consumer price index","es":""},"category":"INCLUDED"},{"id":"I3","text":{"fr":"","en":"Additional rent of 1% of the store's revenue","es":""},"category":"EXCLUDED"},{"id":"I4","text":{"fr":"","en":"First-quarter rent paid at signature, before the commencement date","es":""},"category":"EXCLUDED"},{"id":"I5","text":{"fr":"","en":"Exit penalty in year 6, the 9-year term used assuming the termination option will not be exercised","es":""},"category":"EXCLUDED"},{"id":"I6","text":{"fr":"","en":"Exit penalty in year 6, had the term used been 6 years (exercise of the termination option)","es":""},"category":"INCLUDED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000052","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"MEDIA","tested_point":"LIABILITY_MEASUREMENT_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"pitfalls"},"references":["IFRS 16 §26","IFRS 16 §27","IFRS 16 §28","IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"A television channel leases a studio for 5 years. Its accountant drafts the calculation note for the lease liability at the commencement date. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Two errors: the usage-based fee does not enter the liability (IFRS 16, paras. 27 and 38) and the liability is always discounted (IFRS 16, para. 26). The incentive receivable is indeed deducted from the fixed payments (IFRS 16, para. 27(a)). The indexed rent is correctly measured using the commencement-date index (IFRS 16, paras. 27(b) and 28).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The fixed payments of 80,000 a year, made at year end, are discounted at the incremental borrowing rate, as the implicit rate cannot be readily determined.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The fee of 200 per filming day is estimated over 5 years (about 250 days a year) and added to the liability.","es":""},"erroneous":true,"correction":{"fr":"","en":"This fee depends on use: it is excluded from the liability and expensed as filming days occur (IFRS 16, paras. 27 and 38).","es":""}},{"id":"S3","text":{"fr":"","en":"The rent, indexed each year to the consumer price index, is included in the liability on the basis of the index known at the commencement date, without anticipating future inflation.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"As the payments are fixed for 5 years, there is no need to discount them: the liability equals 400,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"The liability is always the present value of the payments not yet made (IFRS 16, para. 26), even if their amount is certain.","es":""}},{"id":"S5","text":{"fr":"","en":"A 10,000 incentive the lessor will pay in 6 months, in return for signing, reduces the fixed payments taken into account.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000053","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY","IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"LIABILITY_RATE_AND_RVG_ERRORS","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"pitfalls"},"references":["IFRS 16 §22","IFRS 16 §26","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"A car dealer leases a fleet of demonstration vehicles. Review the summary prepared for the auditor and spot the errors.","es":""},"explanation":{"fr":"","en":"S1: the commencement date, not the inception date (IFRS 16, para. 22). S4: the implicit rate, if readily determinable, must be used (IFRS 16, para. 26); S2 applies this rule correctly. S3 is correct: the guarantee enters only for the expected amount, nil here since the expected value exceeds the guaranteed value (IFRS 16, para. 27(c)).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The lease was signed on 15 November Y and the vehicles delivered on 2 January Y+1: the liability is recognised on 15 November Y.","es":""},"erroneous":true,"correction":{"fr":"","en":"Recognition takes place at the commencement date, when the vehicles are made available: 2 January Y+1 (IFRS 16, para. 22).","es":""}},{"id":"S2","text":{"fr":"","en":"The lessor disclosed the fair value of the vehicles, its costs and the expected residual value; the implicit rate (3.8%) was used rather than the incremental borrowing rate (4.5%).","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The dealer guarantees a resale value of 300,000 for the fleet and expects 330,000: no amount is included for the guarantee.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"For prudence, the incremental borrowing rate was used although the implicit rate is readily determinable, as it gives a lower liability.","es":""},"erroneous":true,"correction":{"fr":"","en":"The implicit rate takes priority as soon as it is readily determinable; the choice of rate is not a prudence option (IFRS 16, para. 26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000054","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LOGISTICS","tested_point":"IN_SUBSTANCE_FIXED_PAYMENTS","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"in-substance-fixed"},"references":["IFRS 16 §26","IFRS 16 §27","IFRS 16 §B42","IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"Analyse the parcel sorter contract and answer the questions.","es":""},"explanation":{"fr":"","en":"The judgement concerns whether the condition is genuine, not how probable it is: a clause that creates no genuine variability is disregarded (IFRS 16, para. B42). The liability of 97,125.60 includes only the in-substance fixed payment; the per-parcel fee remains variable.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a logistics provider leases, for 3 years, an automatic parcel sorter installed in its warehouse. The contract provides for: (1) a payment of 36,000 due at year end 'provided the sorter has been in working order for at least one day in the year' — the sorter is new, maintained by the lessor, and the provider will use it every day; (2) 0.02 per parcel sorted. The lessor refuses to disclose its residual value assumptions; the lessee's incremental borrowing rate is 5.5%.","es":""},"parts":[{"prompt":{"fr":"","en":"How should the 36,000 payment be characterised?","es":""},"explanation":{"fr":"","en":"A payment due only if the asset operates, when it is not realistically possible that it will not, is in-substance fixed (IFRS 16, para. B42) and enters the liability (IFRS 16, para. 27(a)).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Variable payment excluded, because it is conditional","es":""},"correct":false,"feedback":{"fr":"","en":"The condition has no economic substance: a new, maintained sorter will work for at least one day a year.","es":""}},{"id":"B","text":{"fr":"","en":"In-substance fixed payment, included in the liability","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Variable payment depending on an index","es":""},"correct":false,"feedback":{"fr":"","en":"No index or rate is involved in this clause.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Which discount rate should be used?","es":""},"explanation":{"fr":"","en":"As the implicit rate cannot be readily determined, the incremental borrowing rate applies (IFRS 16, para. 26).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 5.5% incremental borrowing rate","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An implicit rate estimated from the residual value assumed by the lessee","es":""},"correct":false,"feedback":{"fr":"","en":"Without the lessor's data, the implicit rate is not readily determinable.","es":""}}],"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the lease liability at the commencement date.","es":""},"explanation":{"fr":"","en":"36,000 / 1.055 + 36,000 / 1.055² + 36,000 / 1.055³ = 34,123.22 + 32,344.29 + 30,658.09 = 97,125.60. The per-parcel fee depends on use: excluded, it will be expensed (IFRS 16, paras. 27 and 38).","es":""},"common_error":{"fr":"","en":"Including the per-parcel charge in the liability: it depends on use and is expensed.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"In-substance fixed payment (year end)","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Term","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"5.5","unit":"PERCENT"},{"label":{"fr":"","en":"Fee per parcel sorted","es":""},"value":"0.02","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Lease liability","es":""},"answer":97125.6,"tolerance":0.05,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Lease liability","es":""},"expression":"a / (1 + b) + a / (1 + b)^2 + a / (1 + b)^3","variables":[{"symbol":"a","meaning":{"fr":"","en":"In-substance fixed payment (year end)","es":""},"value":36000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":5.5,"unit":"PERCENT"}],"result":97125.6,"unit":"EUR"}],"rationale":{"fr":"","en":"The per-parcel fee depends on use: excluded, it will be expensed (IFRS 16, paras. 27 and 38).","es":""},"references":["REF.IFRS16.27","REF.IFRS16.38"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000055","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AGRICULTURE","tested_point":"IMPLICIT_RATE_READILY_DETERMINABLE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"discount-rate"},"references":["IFRS 16 §26","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"An agricultural cooperative leases a combine harvester. The lessor provides a detailed table (fair value of the machine, expected residual value, lessor's direct costs) from which the implicit rate can easily be calculated: 4.2%. The cooperative's incremental borrowing rate is 5.5%. Which rate discounts the lease liability?","es":""},"explanation":{"fr":"","en":"The implicit rate is used as soon as it can be readily determined, which is the case here thanks to the lessor's data (IFRS 16, para. 26; Appendix A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"4.2%, the implicit rate","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"5.5%, the incremental borrowing rate","es":""},"correct":false,"feedback":{"fr":"","en":"The incremental borrowing rate is used only if the implicit rate cannot be readily determined.","es":""}},{"id":"C","text":{"fr":"","en":"The higher of the two, for prudence","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets an order of priority, not a choice based on prudence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000056","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"RECOGNITION_AT_COMMENCEMENT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"recognition-rule"},"references":["IFRS 16 §22","IFRS 16 §5"],"exercise":{"prompt":{"fr":"","en":"A company leases offices for 6 years; it applies no exemption. What does it recognise on the day the offices are made available to it?","es":""},"explanation":{"fr":"","en":"At the commencement date, the lessee recognises a right-of-use asset and a lease liability (IFRS 16, para. 22); only the para. 5 exemptions allow it not to do so (IFRS 16, para. 5).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A right-of-use asset","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A lease liability","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A lease expense equal to the first payment","es":""},"correct":false,"feedback":{"fr":"","en":"Fixed payments are not expenses: they repay the liability.","es":""}},{"id":"D","text":{"fr":"","en":"Nothing: only a note disclosure is required","es":""},"correct":false,"feedback":{"fr":"","en":"Apart from the exemptions, the lease is recognised on the balance sheet.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000057","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"HEALTHCARE","tested_point":"INDEXED_PAYMENTS_COMMENCEMENT_INDEX","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000007","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"index-payments"},"references":["IFRS 16 §26","IFRS 16 §27","IFRS 16 §28"],"exercise":{"prompt":{"fr":"","en":"A clinic leases an ultrasound scanner for 3 years. The payment, made at year end, is 12,000 based on the price index known at the commencement date; it will be indexed each year. Economists forecast +3% a year. Incremental borrowing rate: 4%.","es":""},"explanation":{"fr":"","en":"Payments that depend on an index enter the liability, measured using the commencement-date index, without anticipating inflation (IFRS 16, paras. 27(b) and 28): 12,000 / 1.04 + 12,000 / 1.04² + 12,000 / 1.04³ = 11,538.46 + 11,094.67 + 10,667.96 = 33,301.09. As the implicit rate is not given (case data), discounting uses the incremental borrowing rate (IFRS 16, para. 26).","es":""},"common_error":{"fr":"","en":"Projecting payments to 12,360 then 12,730.80 (forecast inflation) before discounting.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Payments are measured using the index {{index}}. Lease liability at the commencement date: {{liability}}.","es":""},"blanks":[{"id":"index","mode":"CHOICE","choices":[{"id":"AT_COMMENCEMENT","text":{"fr":"","en":"known at the commencement date","es":""}},{"id":"FORECAST","text":{"fr":"","en":"forecast for each future year","es":""}},{"id":"AT_END","text":{"fr":"","en":"observed at the end of the lease","es":""}}],"answer":"AT_COMMENCEMENT"},{"id":"liability","mode":"NUMBER","answer":33301.09,"tolerance":0.05}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000058","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"ROU_COST_ALL_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"numeric-example"},"references":["IFRS 16 §23","IFRS 16 §24","IFRS 16 §25"],"exercise":{"prompt":{"fr":"","en":"Case data: a DIY retailer leases a distribution warehouse. Calculate the cost of the right-of-use asset at the commencement date.","es":""},"explanation":{"fr":"","en":"Cost = 250,000 + (12,000 − 5,000) + 4,000 + 8,000 = 269,000 (IFRS 16, paras. 23 and 24). The commission is an initial direct cost (para. 24(c)); the required restoration is included and provided for under IAS 37 (IFRS 16, para. 25).","es":""},"common_error":{"fr":"","en":"Adding the incentive received instead of deducting it (279,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Initial lease liability","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Payment made to the lessor one month before the commencement date","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Lease incentive received from the lessor","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Estate agent's commission, due only if the lease is signed","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Restoration required on exit (present value, IAS 37)","es":""},"value":"8000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Payments made less incentives received","es":""},"answer":7000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"answer":269000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"expression":"a + (b - c) + d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial lease liability","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Payment made to the lessor one month before the commencement date","es":""},"value":12000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Lease incentive received from the lessor","es":""},"value":5000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Estate agent's commission, due only if the lease is signed","es":""},"value":4000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Restoration required on exit (present value, IAS 37)","es":""},"value":8000,"unit":"EUR"}],"result":269000,"unit":"EUR"}],"references":["REF.IFRS16.23","REF.IFRS16.24","REF.IFRS16.25"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000059","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"ROU_COST_FROM_DISCOUNTING","difficulty":"ADVANCED","estimated_time_s":360,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"numeric-example"},"references":["IFRS 16 §23","IFRS 16 §24","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Case data: a pharmaceutical laboratory leases a clean room for 6 years, fixed payments of 70,000 at year end; incremental borrowing rate 4.5%. At the commencement date, it pays 6,500 in fees to an adviser whose fee depends on signature, and receives 10,000 from the lessor as a lease incentive. Removal of the specific equipment is required at the end (present value under IAS 37: 15,000). Calculate the liability and the cost of the right-of-use asset.","es":""},"explanation":{"fr":"","en":"Liability: 70,000 × (1 − 1.045⁻⁶) / 0.045 = 361,051.07 (IFRS 16, para. 26). Cost: 361,051.07 − 10,000 + 6,500 + 15,000 = 372,551.07 (IFRS 16, para. 24). At the commencement date, the right-of-use asset is measured at cost (IFRS 16, para. 23).","es":""},"common_error":{"fr":"","en":"Deducting the incentive received from the lease liability instead of the cost of the asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual payment (year end)","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Term","es":""},"value":"6","unit":"YEARS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"4.5","unit":"PERCENT"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"6500","unit":"EUR"},{"label":{"fr":"","en":"Lease incentive received","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Required removal (present value)","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Lease liability","es":""},"answer":361051.07,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"answer":372551.07,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"expression":"a - b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability","es":""},"value":361051.07,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease incentive received","es":""},"value":10000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":6500,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Required removal (present value)","es":""},"value":15000,"unit":"EUR"}],"result":372551.07,"unit":"EUR"}],"rationale":{"fr":"","en":"At the commencement date, the right-of-use asset is measured at cost (IFRS 16, para. 23).","es":""},"references":["REF.IFRS16.23","REF.IFRS16.24","REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000060","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"ROU_COST_ADVANCE_PAYMENT","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"numeric-example"},"references":["IFRS 16 §24","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Case data: a wind farm operator leases a maintenance vessel for 5 years, payments of 80,000 made at the BEGINNING of each year (the first at the commencement date). Incremental borrowing rate: 7%. It also pays a 2,000 commission to a shipbroker. Calculate the liability and the cost of the right-of-use asset.","es":""},"explanation":{"fr":"","en":"Liability: 80,000 × (1/1.07 + 1/1.07² + 1/1.07³ + 1/1.07⁴) = 270,976.90 (IFRS 16, para. 26). Cost: 270,976.90 + 80,000 (payment made at the commencement date) + 2,000 (initial direct cost) = 352,976.90 (IFRS 16, para. 24(a) to (c)).","es":""},"common_error":{"fr":"","en":"Forgetting to add the payment made at the commencement date to cost (272,976.90).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual payment (start of year)","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Number of payments","es":""},"value":"5","unit":"UNITS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"7","unit":"PERCENT"},{"label":{"fr":"","en":"Broker commission","es":""},"value":"2000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Lease liability (4 remaining payments)","es":""},"answer":270976.9,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"answer":352976.9,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Lease liability (4 remaining payments)","es":""},"expression":"a * (1 / (1 + b) + 1 / (1 + b)^2 + 1 / (1 + b)^3 + 1 / (1 + b)^4)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment (start of year)","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":7,"unit":"PERCENT"}],"result":270976.9,"unit":"EUR"}],"references":["REF.IFRS16.24","REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000061","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"ROU_ENTRY_PREPAYMENT_NET_CASH","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"entry"},"references":["IFRS 16 §22","IFRS 16 §24","IFRS 16 §25"],"exercise":{"prompt":{"fr":"","en":"Return to the DIY retailer's warehouse (liability 250,000; cost of the right-of-use asset 269,000). The 12,000 paid one month before the commencement date was recorded as 'prepaid lease payments'. At the commencement date, the retailer pays the 4,000 commission and receives the 5,000 incentive through the same bank (net flow). The restoration provision is 8,000. Record the commencement-date entry.","es":""},"explanation":{"fr":"","en":"Debits: right-of-use asset 269,000 + net cash received 1,000 (5,000 − 4,000) = 270,000. Credits: liability 250,000 + prepaid lease payments transferred to cost 12,000 + provision 8,000 = 270,000. The incentive received reduces the cost of the asset; it is not income (IFRS 16, para. 24(b)); the provision follows IAS 37 (IFRS 16, para. 25). At the commencement date, the lessee recognises the right-of-use asset and the lease liability (IFRS 16, para. 22).","es":""},"common_error":{"fr":"","en":"Recognising the lease incentive as other income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"PREPAID_LEASE_PAYMENTS","text":{"fr":"","en":"Prepaid lease payments","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"RESTORATION_PROVISION","text":{"fr":"","en":"Restoration provision","es":""}},{"id":"OTHER_INCOME","text":{"fr":"","en":"Other income","es":""}}],"lines":[{"id":"L1","account":"ROU_ASSET","side":"DEBIT","amount":269000},{"id":"L2","account":"CASH","side":"DEBIT","amount":1000},{"id":"L3","account":"LEASE_LIABILITY","side":"CREDIT","amount":250000},{"id":"L4","account":"PREPAID_LEASE_PAYMENTS","side":"CREDIT","amount":12000},{"id":"L5","account":"RESTORATION_PROVISION","side":"CREDIT","amount":8000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000062","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ENERGY","tested_point":"ROU_ENTRY_ADVANCE_AND_IDC","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"entry"},"references":["IFRS 16 §22","IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"Return to the wind farm operator's maintenance vessel: liability 270,976.90; first payment of 80,000 and commission of 2,000 paid by bank at the commencement date. Record the entry.","es":""},"explanation":{"fr":"","en":"Right-of-use asset 352,976.90 = liability 270,976.90 + payment made 80,000 + initial direct cost 2,000 (IFRS 16, para. 24); credits: liability 270,976.90 and cash 82,000. Neither the first payment nor the commission is an expense (IFRS 16, paras. 22 and 24).","es":""},"common_error":{"fr":"","en":"Expensing the first payment as lease expense and the commission as fees.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"LEASE_EXPENSE","text":{"fr":"","en":"Lease expense","es":""}},{"id":"FEES_EXPENSE","text":{"fr":"","en":"Fees expense","es":""}}],"lines":[{"id":"L1","account":"ROU_ASSET","side":"DEBIT","amount":352976.9},{"id":"L2","account":"LEASE_LIABILITY","side":"CREDIT","amount":270976.9},{"id":"L3","account":"CASH","side":"CREDIT","amount":82000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000063","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"ROU_ENTRY_IDC_AND_PROVISION","difficulty":"BEGINNER","estimated_time_s":150,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"entry"},"references":["IFRS 16 §22","IFRS 16 §24","IFRS 16 §25"],"exercise":{"prompt":{"fr":"","en":"Case data: an automotive supplier leases an engine test bench. Lease liability: 120,000. Intermediary commission paid by bank: 1,800. Removal of the bench required at the end, IAS 37 provision: 3,200. Record the commencement-date entry (the cost of the right-of-use asset is pre-filled).","es":""},"explanation":{"fr":"","en":"Cost: 120,000 + 1,800 + 3,200 = 125,000 (IFRS 16, para. 24(a), (c) and (d)). Credits: liability 120,000, cash 1,800, provision 3,200 (IAS 37, as referred to by IFRS 16, para. 25). At the commencement date, the lessee recognises the right-of-use asset and the lease liability (IFRS 16, para. 22).","es":""},"common_error":{"fr":"","en":"Leaving the commission or restoration out of the cost: they are added to the lease liability to form the cost.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"RESTORATION_PROVISION","text":{"fr":"","en":"Restoration provision","es":""}},{"id":"FEES_EXPENSE","text":{"fr":"","en":"Fees expense","es":""}}],"lines":[{"id":"L1","account":"ROU_ASSET","side":"DEBIT","amount":125000,"given":["account","side","amount"]},{"id":"L2","account":"LEASE_LIABILITY","side":"CREDIT","amount":120000},{"id":"L3","account":"CASH","side":"CREDIT","amount":1800},{"id":"L4","account":"RESTORATION_PROVISION","side":"CREDIT","amount":3200}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000064","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"ROU_COST_COMPUTATION_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"pitfalls"},"references":["IFRS 16 §24","IFRS 16 §25","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"A telecom operator opens a city-centre shop. Data: lease liability 210,000; payment made before the commencement date 10,000; incentive received 6,000; agent's commission 2,500; time spent by the permanent in-house real estate team 1,200; required restoration (present value) 7,000. Spot the incorrect steps in the calculation of the cost of the right-of-use asset.","es":""},"explanation":{"fr":"","en":"Cost includes the liability, payments made at or before the commencement date less incentives received, initial direct costs and required restoration (IFRS 16, paras. 24 and 25): 223,500. Permanent internal costs are expensed.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Starting point: the initial lease liability of 210,000.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The 6,000 incentive received is added.","es":""},"erroneous":true,"correction":{"fr":"","en":"An incentive received is deducted from cost: − 6,000 (IFRS 16, para. 24(b)).","es":""}},{"id":"S3","text":{"fr":"","en":"The 10,000 paid before the commencement date and the 2,500 commission are added.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The in-house real estate team's time (1,200) is added as an initial direct cost.","es":""},"erroneous":true,"correction":{"fr":"","en":"This cost would have been incurred even without the lease: it is not treated as an initial direct cost (reading of the Appendix A definition used in this course) and is expensed.","es":""}},{"id":"S5","text":{"fr":"","en":"The required restoration (7,000) is added and provided for under IAS 37.","es":""},"erroneous":false},{"id":"S6","text":{"fr":"","en":"Cost of the right-of-use asset: 236,700.","es":""},"erroneous":true,"correction":{"fr":"","en":"Correct cost: 210,000 + 10,000 − 6,000 + 2,500 + 7,000 = 223,500 (IFRS 16, para. 24).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000065","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"MEDIA","tested_point":"RESTORATION_INVENTORY_AND_CONSTRUCTION","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"restoration-costs"},"references":["IFRS 16 §24","IFRS 16 §25","IFRS 16 §B43","IFRS 16 §B44"],"exercise":{"prompt":{"fr":"","en":"A production company leases a studio that the lessor is finishing fitting out for it. The studio is also used to make sets intended for sale (inventories). Spot the incorrect statements in its accounting memo.","es":""},"explanation":{"fr":"","en":"Three errors: an advance lease payment is not a construction cost (IFRS 16, paras. B43-B44); wear linked to producing inventories falls under IAS 2; any restoration obligation follows IAS 37 (IFRS 16, para. 25).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The 15,000 paid to the lessor two months before delivery, in return for the right to use the studio, are included in the cost of the right-of-use asset.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"These 15,000 are construction costs of the underlying asset, because they were paid during the works.","es":""},"erroneous":true,"correction":{"fr":"","en":"A payment for the right to use the asset is a lease payment, whatever its timing (IFRS 16, para. B44); it enters the cost of the right-of-use asset (para. 24(b)).","es":""}},{"id":"S3","text":{"fr":"","en":"Restoration of the floor, damaged each month by making the sets that are sold, is added to the cost of the right-of-use asset.","es":""},"erroneous":true,"correction":{"fr":"","en":"Costs incurred during a period to produce inventories fall under IAS 2 (IFRS 16, para. 25).","es":""}},{"id":"S4","text":{"fr":"","en":"The restoration provision is measured under the IFRS 16 rules specific to the lease liability.","es":""},"erroneous":true,"correction":{"fr":"","en":"The restoration obligation is recognised and measured under IAS 37 (IFRS 16, para. 25).","es":""}},{"id":"S5","text":{"fr":"","en":"Restoration of the walls required when the studio is returned, an obligation existing from the commencement date, is included in the cost of the right-of-use asset.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000066","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"LOGISTICS","tested_point":"ROU_COST_COMPONENTS_SIGN","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §24","IFRS 16 §25","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"A carrier leases a parcel hub. Classify each item according to its effect on the cost of the right-of-use asset at the commencement date.","es":""},"explanation":{"fr":"","en":"Added: payments made at or before the commencement date, initial direct costs, required restoration (IFRS 16, paras. 24 and 25). Deducted: the incentive received (para. 24(b)). The incentive receivable is already deducted from the payments in the liability (para. 27(a)): it is not deducted from cost a second time. Training is not a cost of obtaining the lease.","es":""},"common_error":{"fr":"","en":"Deducting an incentive still receivable from the cost: it is already deducted from the liability's payments.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ADD","text":{"fr":"","en":"Added to cost","es":""}},{"id":"DEDUCT","text":{"fr":"","en":"Deducted from cost","es":""}},{"id":"NOT_IN_COST","text":{"fr":"","en":"No effect on cost","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"First month's payment made at signature","es":""},"category":"ADD"},{"id":"I2","text":{"fr":"","en":"Amount paid by the lessor as an incentive to sign, already received","es":""},"category":"DEDUCT"},{"id":"I3","text":{"fr":"","en":"Broker's commission, due only if the lease is signed","es":""},"category":"ADD"},{"id":"I4","text":{"fr":"","en":"Removal of the loading docks required on exit (present value)","es":""},"category":"ADD"},{"id":"I5","text":{"fr":"","en":"Training of forklift drivers for the new hub","es":""},"category":"NOT_IN_COST"},{"id":"I6","text":{"fr":"","en":"Lease incentive promised by the lessor, still receivable","es":""},"category":"NOT_IN_COST"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000067","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"HEALTHCARE","tested_point":"PAYMENTS_DURING_CONSTRUCTION","difficulty":"ADVANCED","estimated_time_s":420,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"lessee-involvement"},"references":["IFRS 16 §24","IFRS 16 §B43","IFRS 16 §B44","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"Analyse the set-up of the imaging centre lease and answer the questions.","es":""},"explanation":{"fr":"","en":"When the asset is built for the lessee, each payment must be characterised: use (lease payment, cost of the right-of-use asset) or construction and design (other Standards) (IFRS 16, paras. B43 and B44). The commission payable only if the lease is signed is an initial direct cost as defined in the standard (IFRS 16, Appendix A).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a clinic signs a 10-year lease for an imaging centre that the developer-lessor is building and that remains its property. During the works, the clinic pays the lessor 30,000 'on account of the use of the premises' from delivery. It also pays an engineering firm 18,000 to design the shielding of the radiology rooms, for which the accounting analysis of control of the asset is still to be carried out. On delivery: lease liability 520,000; commission of a real estate adviser, due only if the lease is signed, 6,000.","es":""},"parts":[{"prompt":{"fr":"","en":"How should the 30,000 paid to the lessor during the works be treated?","es":""},"explanation":{"fr":"","en":"Payments made for the right to use the asset are lease payments, whatever their timing (IFRS 16, para. B44); made before the commencement date, they enter the cost of the right-of-use asset (IFRS 16, para. 24(b)).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Lease payment made before the commencement date: included in the cost of the right-of-use asset","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Construction cost accounted for under IAS 16","es":""},"correct":false,"feedback":{"fr":"","en":"This payment is for the future use of the premises, not their construction.","es":""}},{"id":"C","text":{"fr":"","en":"Expense of the construction period","es":""},"correct":false,"feedback":{"fr":"","en":"An advance lease payment is not an expense: it enters the cost of the asset.","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"And the 18,000 paid to the engineering firm to design the shielding?","es":""},"explanation":{"fr":"","en":"Costs incurred by the lessee for the construction or design of the underlying asset fall under other Standards, such as IAS 16 (IFRS 16, para. B44). The exact characterisation requires documented judgement on control of the asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are automatically added to the cost of the right-of-use asset","es":""},"correct":false,"feedback":{"fr":"","en":"Design costs of the underlying asset are not payments for the right of use.","es":""}},{"id":"B","text":{"fr":"","en":"They fall under other Standards (for example IAS 16), to be analysed case by case, outside the cost of the right-of-use asset","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They reduce the lease liability","es":""},"correct":false,"feedback":{"fr":"","en":"They are neither a lease payment nor a lease incentive.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the cost of the right-of-use asset on delivery.","es":""},"explanation":{"fr":"","en":"520,000 + 30,000 + 6,000 = 556,000 (IFRS 16, para. 24(a) to (c)); the 18,000 of design costs are excluded (IFRS 16, para. B44).","es":""},"common_error":{"fr":"","en":"Adding the shielding design costs to the cost: they are not part of the right-of-use asset's cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Initial lease liability","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Payment made during the works","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Adviser commission","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Shielding design","es":""},"value":"18000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"answer":556000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial lease liability","es":""},"value":520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Payment made during the works","es":""},"value":30000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Adviser commission","es":""},"value":6000,"unit":"EUR"}],"result":556000,"unit":"EUR"}],"references":["REF.IFRS16.24","REF.IFRS16.B44"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000068","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"ROU_MEASURED_AT_COST","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS16.000008","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §23","IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"At the commencement date, how does the lessee measure the right-of-use asset?","es":""},"explanation":{"fr":"","en":"The right-of-use asset is measured at cost (IFRS 16, para. 23), which starts from the initial amount of the lease liability and adjusts it for the other components of para. 24.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the fair value of the leased asset","es":""},"correct":false,"feedback":{"fr":"","en":"The lessee does not acquire the asset but a right of use; the fair value of the asset is not the measurement basis.","es":""}},{"id":"B","text":{"fr":"","en":"At cost, starting from the initial amount of the lease liability","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the undiscounted sum of the lease payments","es":""},"correct":false,"feedback":{"fr":"","en":"The starting point is the liability, which is a present value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000069","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"LIABILITY_SCHEDULE_FULL","difficulty":"INTERMEDIATE","estimated_time_s":360,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"numeric-example"},"references":["IFRS 16 §36","IFRS 16 §37"],"exercise":{"prompt":{"fr":"","en":"Case data: a toy store chain leases a storage unit for 3 years, payments of 20,000 at year end, rate 4%. Liability at the commencement date: 55,501.82. Build the amortisation schedule (round to the cent each year).","es":""},"explanation":{"fr":"","en":"Year 1: 55,501.82 × 4% = 2,220.07; 55,501.82 + 2,220.07 − 20,000 = 37,721.89. Year 2: 1,508.88; 19,230.77. Year 3: 769.23; 19,230.77 + 769.23 − 20,000 = 0. Interest produces a constant rate on the remaining balance (IFRS 16, paras. 36 and 37).","es":""},"common_error":{"fr":"","en":"Calculating interest on the balance after payment (1,420.07 in year 1).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability at the commencement date","es":""},"value":"55501.82","unit":"EUR"},{"label":{"fr":"","en":"Annual payment (year end)","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (commencement date)","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Interest year 1","es":""},"answer":2220.07,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Closing balance year 1","es":""},"answer":37721.89,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Interest year 2","es":""},"answer":1508.88,"tolerance":0.05,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Closing balance year 2","es":""},"answer":19230.77,"tolerance":0.05,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Interest year 3","es":""},"answer":769.23,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Interest year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":55501.82,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (commencement date)","es":""},"value":4,"unit":"PERCENT"}],"result":2220.07,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Closing balance year 1","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":55501.82,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest year 1","es":""},"value":2220.07,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual payment (year end)","es":""},"value":20000,"unit":"EUR"}],"result":37721.89,"unit":"EUR"}],"references":["REF.IFRS16.36","REF.IFRS16.37"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000070","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"INTEREST_AND_PRINCIPAL_SPLIT","difficulty":"BEGINNER","estimated_time_s":180,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §36","IFRS 16 §37"],"exercise":{"prompt":{"fr":"","en":"Case data: a garage leases a vehicle lift; liability at the commencement date 51,976.58; rate 6%; 4 payments of 15,000 at year end. Split the first payment.","es":""},"explanation":{"fr":"","en":"Interest: 51,976.58 × 6% = 3,118.59 (IFRS 16, para. 37). Principal: 15,000 − 3,118.59 = 11,881.41. Balance: 51,976.58 − 11,881.41 = 40,095.17 (IFRS 16, para. 36).","es":""},"common_error":{"fr":"","en":"Allocating the whole payment to repaying the debt: the interest portion must be separated first.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability at the commencement date","es":""},"value":"51976.58","unit":"EUR"},{"label":{"fr":"","en":"Payment (year end)","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (commencement date)","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Interest part of the first payment","es":""},"answer":3118.59,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Principal part (repayment of the debt)","es":""},"answer":11881.41,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Closing balance year 1","es":""},"answer":40095.17,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Interest part of the first payment","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":51976.58,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (commencement date)","es":""},"value":6,"unit":"PERCENT"}],"result":3118.59,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Principal part (repayment of the debt)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Payment (year end)","es":""},"value":15000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest part of the first payment","es":""},"value":3118.59,"unit":"EUR"}],"result":11881.41,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Closing balance year 1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":51976.58,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Principal part (repayment of the debt)","es":""},"value":11881.41,"unit":"EUR"}],"result":40095.17,"unit":"EUR"}],"references":["REF.IFRS16.36","REF.IFRS16.37"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000071","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"ROU_CARRYING_AMOUNT_LEASE_TERM","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"depreciation-period"},"references":["IFRS 16 §30","IFRS 16 §31","IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"Case data: a press group leases a printing press for 4 years; useful life of the press: 6 years; no transfer of ownership and no purchase option. Cost of the right-of-use asset: 96,000; straight-line depreciation (assumption). Calculate the depreciation period, the annual charge and the carrying amount at the end of year 3.","es":""},"explanation":{"fr":"","en":"With no transfer and no purchase option, depreciation runs to the earlier of the end of the useful life and the end of the lease, i.e. 4 years (IFRS 16, para. 32). Charge: 96,000 / 4 = 24,000. Carrying amount: 96,000 − 3 × 24,000 = 24,000 (IFRS 16, para. 30). The right-of-use asset is depreciated under the IAS 16 requirements, to which IFRS 16 refers (IFRS 16, para. 31).","es":""},"common_error":{"fr":"","en":"Depreciating over 6 years (16,000 a year) and leaving 48,000 on the balance sheet at the end of year 3.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":"96000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Useful life of the press","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Depreciation period","es":""},"answer":4,"tolerance":0,"unit":"YEARS"},{"id":"S2","label":{"fr":"","en":"Annual charge","es":""},"answer":24000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Carrying amount at end of year 3","es":""},"answer":24000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Annual charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":96000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease term","es":""},"value":4,"unit":"YEARS"}],"result":24000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Carrying amount at end of year 3","es":""},"expression":"a - 3 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":96000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual charge","es":""},"value":24000,"unit":"EUR"}],"result":24000,"unit":"EUR"}],"rationale":{"fr":"","en":"With no transfer and no purchase option, depreciation runs to the earlier of the end of the useful life and the end of the lease, i.e. 4 years (IFRS 16, para. 32).","es":""},"references":["REF.IFRS16.30","REF.IFRS16.31","REF.IFRS16.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000072","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"ROU_DEPRECIATION_USEFUL_LIFE_OPTION","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"depreciation-period"},"references":["IFRS 16 §31","IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"Case data: a gas distributor leases a compressor station for 5 years. A reasonably certain purchase option is included in the liability. Useful life of the station: 10 years. Cost of the right-of-use asset: 300,000; straight-line depreciation (assumption). Calculate the annual charge and the carrying amount at the end of the lease (year 5).","es":""},"explanation":{"fr":"","en":"The cost reflects the exercise of a purchase option: depreciation to the end of the useful life of the underlying asset, 10 years (IFRS 16, para. 32). Charge: 300,000 / 10 = 30,000; carrying amount after 5 years: 150,000. The right-of-use asset is depreciated under the IAS 16 requirements, to which IFRS 16 refers (IFRS 16, para. 31).","es":""},"common_error":{"fr":"","en":"Depreciating over the lease term (60,000 a year, nil value in year 5).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Useful life","es":""},"value":"10","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Annual charge","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Carrying amount at end of year 5","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Annual charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life","es":""},"value":10,"unit":"YEARS"}],"result":30000,"unit":"EUR"}],"references":["REF.IFRS16.31","REF.IFRS16.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000073","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"EDUCATION","tested_point":"TOTAL_LESSEE_EXPENSE_YEAR1","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"expenses-in-pl"},"references":["IFRS 16 §31","IFRS 16 §32","IFRS 16 §37","IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"Case data: a school group leases coaches for 3 years (useful life 8 years, no transfer and no purchase option). Liability at the commencement date 136,162.40 (3 payments of 50,000 at year end, rate 5%); initial direct costs 1,500; right-of-use asset 137,662.40, depreciated on a straight-line basis (assumption). In year 1, a fee of 0.10 per kilometre driven amounts to 2,000. Calculate the year 1 expenses.","es":""},"explanation":{"fr":"","en":"Interest: 136,162.40 × 5% = 6,808.12 (IFRS 16, para. 37). Depreciation over 3 years, the shorter period: 137,662.40 / 3 = 45,887.47 (IFRS 16, paras. 31 and 32). Kilometre fee: expense of the period (IFRS 16, para. 38). Total: 6,808.12 + 45,887.47 + 2,000 = 54,695.59, against 52,000 paid out.","es":""},"common_error":{"fr":"","en":"Using the 52,000 paid out as the expense for the year.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability at the commencement date","es":""},"value":"136162.40","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset","es":""},"value":"137662.40","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (commencement date)","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Kilometre fee year 1","es":""},"value":"2000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Interest expense year 1","es":""},"answer":6808.12,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Depreciation charge year 1","es":""},"answer":45887.47,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total lease-related expenses in year 1","es":""},"answer":54695.59,"tolerance":0.05,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Interest expense year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":136162.4,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (commencement date)","es":""},"value":5,"unit":"PERCENT"}],"result":6808.12,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Depreciation charge year 1","es":""},"expression":"a / 3","variables":[{"symbol":"a","meaning":{"fr":"","en":"Right-of-use asset","es":""},"value":137662.4,"unit":"EUR"}],"result":45887.47,"unit":"EUR","rationale":{"fr":"","en":"Depreciation over 3 years, the shorter period: 137,662.40 / 3 = 45,887.47 (IFRS 16, paras. 31 and 32).","es":""}},{"step":"S3","meaning":{"fr":"","en":"Total lease-related expenses in year 1","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest expense year 1","es":""},"value":6808.12,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Depreciation charge year 1","es":""},"value":45887.47,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Kilometre fee year 1","es":""},"value":2000,"unit":"EUR"}],"result":54695.59,"unit":"EUR"}],"references":["REF.IFRS16.31","REF.IFRS16.32","REF.IFRS16.37","REF.IFRS16.38"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000074","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"YEAR2_ENTRIES_TRANSVIA","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"entry"},"references":["IFRS 16 §31","IFRS 16 §36","IFRS 16 §37"],"exercise":{"prompt":{"fr":"","en":"Transvia, end of year 2: opening liability balance 141,838.02; rate 5%; payment of 40,000 made on the last day of the year; right-of-use asset of 178,679.07 depreciated on a straight-line basis over 5 years (35,735.81). Record the year 2 interest, payment and depreciation in a single entry.","es":""},"explanation":{"fr":"","en":"Interest: 141,838.02 × 5% = 7,091.90 (IFRS 16, para. 37). The 40,000 payment covers that interest and repays 32,908.10 of principal; the liability falls to 108,929.92 (IFRS 16, para. 36). Depreciation: 35,735.81 (IFRS 16, para. 31). Debits 75,735.81 = credits 75,735.81.","es":""},"common_error":{"fr":"","en":"Debiting 40,000 to lease expense in addition to depreciation.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INTEREST_EXPENSE","text":{"fr":"","en":"Interest expense on lease liabilities","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"DEPRECIATION_EXPENSE","text":{"fr":"","en":"Depreciation expense on right-of-use assets","es":""}},{"id":"ACCUMULATED_DEPRECIATION","text":{"fr":"","en":"Accumulated depreciation of right-of-use assets","es":""}},{"id":"LEASE_EXPENSE","text":{"fr":"","en":"Lease expense (fixed payments)","es":""}}],"lines":[{"id":"L1","account":"INTEREST_EXPENSE","side":"DEBIT","amount":7091.9},{"id":"L2","account":"LEASE_LIABILITY","side":"DEBIT","amount":32908.1},{"id":"L3","account":"CASH","side":"CREDIT","amount":40000},{"id":"L4","account":"DEPRECIATION_EXPENSE","side":"DEBIT","amount":35735.81},{"id":"L5","account":"ACCUMULATED_DEPRECIATION","side":"CREDIT","amount":35735.81}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000075","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"CONSTRUCTION","tested_point":"DEPRECIATION_AND_INTEREST_ENTRIES","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"entry"},"references":["IFRS 16 §31","IFRS 16 §32","IFRS 16 §37","IFRS 16 §36"],"exercise":{"prompt":{"fr":"","en":"Case data: a civil engineering company leases an excavator for 3 years (useful life 5 years, no transfer and no purchase option). Right-of-use asset: 84,000, depreciated on a straight-line basis (assumption). Liability at the start of year 1: 80,000, rate 5%. The payment has already been recorded. Record the year 1 interest and depreciation entries.","es":""},"explanation":{"fr":"","en":"Depreciation over 3 years, the shorter of useful life and lease term: 84,000 / 3 = 28,000 (IFRS 16, paras. 31 and 32). Interest: 80,000 × 5% = 4,000, added to the liability (IFRS 16, paras. 36 and 37).","es":""},"common_error":{"fr":"","en":"Depreciating over 5 years (16,800) or crediting the asset directly instead of accumulated depreciation.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INTEREST_EXPENSE","text":{"fr":"","en":"Interest expense on lease liabilities","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"DEPRECIATION_EXPENSE","text":{"fr":"","en":"Depreciation expense on right-of-use assets","es":""}},{"id":"ACCUMULATED_DEPRECIATION","text":{"fr":"","en":"Accumulated depreciation of right-of-use assets","es":""}},{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"DEPRECIATION_EXPENSE","side":"DEBIT","amount":28000},{"id":"L2","account":"ACCUMULATED_DEPRECIATION","side":"CREDIT","amount":28000},{"id":"L3","account":"INTEREST_EXPENSE","side":"DEBIT","amount":4000},{"id":"L4","account":"LEASE_LIABILITY","side":"CREDIT","amount":4000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000076","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FOOD_SERVICE","tested_point":"VARIABLE_PAYMENT_EXPENSED","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"expenses-in-pl"},"references":["IFRS 16 §36","IFRS 16 §37","IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"Case data: a restaurant pays its lessor, at year end, a fixed rent of 60,000 and a variable rent of 2% of its revenue (1,500,000 this year). Opening liability: 180,000; rate 5%. Record the year-end entry (interest and payments, excluding depreciation).","es":""},"explanation":{"fr":"","en":"Interest: 180,000 × 5% = 9,000 (IFRS 16, para. 37); the fixed rent of 60,000 covers that interest and repays 51,000 of principal (IFRS 16, para. 36). The variable rent of 30,000 (2% × 1,500,000), not included in the liability, is an expense of the period (IFRS 16, para. 38). Debits 90,000 = credit 90,000.","es":""},"common_error":{"fr":"","en":"Debiting the liability with 81,000 (fixed and variable) as if the variable rent were included in it.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"INTEREST_EXPENSE","text":{"fr":"","en":"Interest expense on lease liabilities","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"VARIABLE_LEASE_EXPENSE","text":{"fr":"","en":"Variable lease payments expense","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"LEASE_EXPENSE","text":{"fr":"","en":"Lease expense (fixed payments)","es":""}}],"lines":[{"id":"L1","account":"INTEREST_EXPENSE","side":"DEBIT","amount":9000},{"id":"L2","account":"LEASE_LIABILITY","side":"DEBIT","amount":51000},{"id":"L3","account":"VARIABLE_LEASE_EXPENSE","side":"DEBIT","amount":30000},{"id":"L4","account":"CASH","side":"CREDIT","amount":90000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000077","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"HOSPITALITY","tested_point":"SUBSEQUENT_MEASUREMENT_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"pitfalls"},"references":["IFRS 16 §32","IFRS 16 §36","IFRS 16 §37","IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"A hotel leases its kitchen equipment for 7 years (useful life 12 years, no transfer and no purchase option), fixed payment of 30,000 at year end. Review the closing principles drafted by the accountant and spot the errors.","es":""},"explanation":{"fr":"","en":"Three errors (S1, S3, S4). Interest follows the remaining balance (IFRS 16, para. 37), the payment reduces the debt (para. 36), and depreciation stops at the end of the lease in the absence of a transfer or option (para. 32). The per-meal fee is indeed an expense of the period (para. 38).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Each year, the interest expense equals the total interest over the lease divided by 7.","es":""},"erroneous":true,"correction":{"fr":"","en":"Interest produces a constant periodic rate on the remaining balance: it decreases each year (IFRS 16, para. 37).","es":""}},{"id":"S2","text":{"fr":"","en":"Interest for the year is calculated on the opening balance, as the payment is made at year end.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The annual payment of 30,000 is recognised as lease expense.","es":""},"erroneous":true,"correction":{"fr":"","en":"The payment reduces the lease liability (interest then principal); it is not an expense (IFRS 16, para. 36).","es":""}},{"id":"S4","text":{"fr":"","en":"The right-of-use asset is depreciated over 12 years, the useful life of the equipment.","es":""},"erroneous":true,"correction":{"fr":"","en":"With no transfer and no purchase option, the period ends at the earlier of the two dates: 7 years here (IFRS 16, para. 32).","es":""}},{"id":"S5","text":{"fr":"","en":"The fee of 0.40 per meal served, provided for in the contract, is expensed as meals are served.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000078","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"REAL_ESTATE","tested_point":"OTHER_MEASUREMENT_MODELS","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"other-models"},"references":["IFRS 16 §29","IFRS 16 §30","IFRS 16 §33","IFRS 16 §34","IFRS 16 §35"],"exercise":{"prompt":{"fr":"","en":"A real estate group that measures its investment property at fair value (IAS 40) and revalues its owner-occupied offices (IAS 16) drafts its accounting policies for right-of-use assets. Spot the errors.","es":""},"explanation":{"fr":"","en":"The cost model is the default rule (IFRS 16, paras. 29-30); the IAS 40 fair value model applies to right-of-use assets that are investment property when the entity uses it (IFRS 16, para. 34); revaluation is an option covering the whole class (IFRS 16, para. 35); IAS 36 applies in all cases (IFRS 16, para. 33).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"A right-of-use asset over a leased building that is sublet and meets the definition of investment property is measured under the IAS 40 fair value model.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The group elects to revalue only the right-of-use asset for its head office, not those for its other leased offices in the same class.","es":""},"erroneous":true,"correction":{"fr":"","en":"The revaluation model election covers all right-of-use assets in the class (IFRS 16, para. 35).","es":""}},{"id":"S3","text":{"fr":"","en":"As a right-of-use asset is not an owned asset, it is never subject to impairment testing.","es":""},"erroneous":true,"correction":{"fr":"","en":"The lessee applies IAS 36 to determine whether the right-of-use asset is impaired (IFRS 16, para. 33).","es":""}},{"id":"S4","text":{"fr":"","en":"Under the cost model, the right-of-use asset is changed after the commencement date only by depreciation.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is also reduced by impairment losses and adjusted for remeasurements of the lease liability (IFRS 16, para. 30).","es":""}},{"id":"S5","text":{"fr":"","en":"Other right-of-use assets (vehicles, IT equipment) follow the cost model.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000079","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TELECOM","tested_point":"PL_VERSUS_LIABILITY_REDUCTION","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"expenses-in-pl"},"references":["IFRS 16 §31","IFRS 16 §36","IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"An operator leases space on towers. Classify each item of the year: expense in profit or loss, or simple reduction of the lease liability?","es":""},"explanation":{"fr":"","en":"To profit or loss: interest, variable payments not included in the liability (IFRS 16, para. 38) and depreciation (IFRS 16, para. 31). The principal part of the fixed payments reduces the liability with no expense (IFRS 16, para. 36).","es":""},"common_error":{"fr":"","en":"Expensing the principal portion of fixed payments: it only reduces the liability.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EXPENSE","text":{"fr":"","en":"Expense in profit or loss","es":""}},{"id":"LIABILITY_REDUCTION","text":{"fr":"","en":"Reduction of the liability, no expense","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Interest for the year at the constant rate","es":""},"category":"EXPENSE"},{"id":"I2","text":{"fr":"","en":"Part of the fixed payment in excess of the interest for the year","es":""},"category":"LIABILITY_REDUCTION"},{"id":"I3","text":{"fr":"","en":"Supplement billed according to the number of antennas installed in the year","es":""},"category":"EXPENSE"},{"id":"I4","text":{"fr":"","en":"Depreciation of the right-of-use asset","es":""},"category":"EXPENSE"},{"id":"I5","text":{"fr":"","en":"Principal repayment included in the last payment","es":""},"category":"LIABILITY_REDUCTION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000080","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"SUBSEQUENT_MEASUREMENT_FULL_CASE","difficulty":"EXPERT","estimated_time_s":540,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"judgment"},"references":["IFRS 16 §32","IFRS 16 §33","IFRS 16 §36","IFRS 16 §37","IAS 36 §59","IFRS 16 §30"],"exercise":{"prompt":{"fr":"","en":"Analyse the injection moulding press lease and answer the questions.","es":""},"explanation":{"fr":"","en":"The two items live separately: the debt follows its schedule (IFRS 16, paras. 36-37), the asset its depreciation over the para. 32 period and, if there is an indication, the IAS 36 test (IFRS 16, para. 33).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Case data: a plastics processor leases an injection moulding press for 4 years, 4 payments of 90,000 at year end, incremental borrowing rate 5.5%. Liability at the commencement date: 315,463.51; initial direct costs 4,536.49; right-of-use asset 320,000. Useful life of the press: 7 years. No transfer of ownership; purchase option at market price, not reasonably certain. Assumption: straight-line depreciation. At the end of year 1, the processor's main customer announces it will stop ordering.","es":""},"parts":[{"prompt":{"fr":"","en":"Over what period should the right-of-use asset be depreciated?","es":""},"explanation":{"fr":"","en":"No transfer and no reasonably certain option: the earlier of the end of the useful life (7 years) and the end of the lease (4 years), i.e. 4 years (IFRS 16, para. 32).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"4 years","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"7 years","es":""},"correct":false,"feedback":{"fr":"","en":"The useful life applies only if ownership transfers or a purchase option is reflected in cost.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Calculate the year 1 amounts (before any impairment test).","es":""},"explanation":{"fr":"","en":"Interest: 315,463.51 × 5.5% = 17,350.49; liability: 315,463.51 + 17,350.49 − 90,000 = 242,814.00 (IFRS 16, paras. 36 and 37). Depreciation: 320,000 / 4 = 80,000; carrying amount 240,000 (IFRS 16, paras. 30 and 32).","es":""},"common_error":{"fr":"","en":"Depreciating the right-of-use asset from the liability amount instead of its 320,000 cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability at the commencement date","es":""},"value":"315463.51","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"5.5","unit":"PERCENT"},{"label":{"fr":"","en":"Payment (year end)","es":""},"value":"90000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Interest year 1","es":""},"answer":17350.49,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Liability at end of year 1","es":""},"answer":242814,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Depreciation year 1","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount of the right-of-use asset at end of year 1","es":""},"answer":240000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Interest year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":315463.51,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate","es":""},"value":5.5,"unit":"PERCENT"}],"result":17350.49,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Liability at end of year 1","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Liability at the commencement date","es":""},"value":315463.51,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest year 1","es":""},"value":17350.49,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Payment (year end)","es":""},"value":90000,"unit":"EUR"}],"result":242814,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Depreciation year 1","es":""},"expression":"a / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Right-of-use asset","es":""},"value":320000,"unit":"EUR"}],"result":80000,"unit":"EUR"}],"references":["REF.IFRS16.32","REF.IFRS16.36","REF.IFRS16.37","REF.IFRS16.30"]}},{"prompt":{"fr":"","en":"If the impairment test leads to the right-of-use asset being written down to its recoverable amount of 180,000, the lease liability is reduced by the same 60,000.","es":""},"explanation":{"fr":"","en":"False. The loss of orders is an indication of impairment: IAS 36 applies to the right-of-use asset (IFRS 16, para. 33) and the 60,000 loss (240,000 − 180,000) reduces the asset (IAS 36, para. 59). The lease liability does not change: the payments are still owed (IFRS 16, para. 36).","es":""},"common_error":{"fr":"","en":"Reducing the lease liability by the impairment amount: only the asset's value falls; rents remain due.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000081","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"AVIATION","tested_point":"DEPRECIATION_PERIOD_OWNERSHIP_TRANSFER","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"depreciation-period"},"references":["IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"An airline leases a flight simulator for 4 years; the lease transfers ownership of the simulator to the airline at the end. Useful life of the simulator: 12 years. Over what period does it depreciate the right-of-use asset?","es":""},"explanation":{"fr":"","en":"When ownership transfers at the end, depreciation runs from the commencement date to the end of the useful life of the underlying asset: 12 years (IFRS 16, para. 32).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"4 years","es":""},"correct":false,"feedback":{"fr":"","en":"With a transfer of ownership, the lease term does not cap depreciation.","es":""}},{"id":"B","text":{"fr":"","en":"8 years (12 − 4)","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation starts at the commencement date, not at the end of the lease.","es":""}},{"id":"C","text":{"fr":"","en":"12 years","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000082","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"ANALYSIS","format":"TRUE_FALSE","context":"GENERIC","tested_point":"FRONT_LOADED_TOTAL_EXPENSE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS16.000009","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"why"},"references":["IFRS 16 §31","IFRS 16 §37"],"exercise":{"prompt":{"fr":"","en":"For a lease with constant payments made at year end and a right-of-use asset depreciated on a straight-line basis, the lessee's total expense (interest + depreciation) is the same every year.","es":""},"explanation":{"fr":"","en":"False. Straight-line depreciation is constant, but interest, calculated at a constant rate on a decreasing balance, falls (IFRS 16, para. 37). The total expense is therefore higher at the start of the lease (Transvia: 44,394.76 in year 1, 37,640.59 in year 5). The right-of-use asset is depreciated under the IAS 16 requirements, to which IFRS 16 refers (IFRS 16, para. 31).","es":""},"common_error":{"fr":"","en":"Confusing the lessee's expense with the payment, which is constant.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000083","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"REMEASURE_TERM_CHANGE","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"numeric-example"},"references":["IFRS 16 §40","IFRS 16 §41","IFRS 16 §39"],"exercise":{"prompt":{"fr":"","en":"A retailer leases a store for 6 years (payment of 50,000 at the end of each year, initial incremental borrowing rate of 4%). At the end of year 3, it completes a major refurbishment of the store, decided by itself; it concludes (judgment adopted, case data) that the 3-year extension option at 55,000 a year, not included until now, is now reasonably certain. The implicit rate cannot be readily determined. Calculate the remeasurement.","es":""},"explanation":{"fr":"","en":"A change in the lease term requires the revised payments (3 × 50,000 then 3 × 55,000) to be discounted at a revised rate, here the incremental borrowing rate of 5.5% at the reassessment date (IFRS 16, paras. 40(a) and 41). Factors 1/1.055^t: 0.947867; 0.898452; 0.851614; 0.807217; 0.765134; 0.725246 → 261,264.50. Adjustment = 261,264.50 − 138,754.54 = 122,509.96, added to the right-of-use asset (IFRS 16, para. 39): 131,053.42 + 122,509.96 = 253,563.38.","es":""},"common_error":{"fr":"","en":"Discounting at the original rate of 4%, or recognising the difference in profit or loss instead of adjusting the right-of-use asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease liability at the end of year 3 (before remeasurement)","es":""},"value":"138754.54","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset at the end of year 3","es":""},"value":"131053.42","unit":"EUR"},{"label":{"fr":"","en":"Remaining payments: years 4 to 6","es":""},"value":"3 × 50000","unit":"TEXT"},{"label":{"fr":"","en":"Extension payments: years 7 to 9","es":""},"value":"3 × 55000","unit":"TEXT"},{"label":{"fr":"","en":"Incremental borrowing rate at the reassessment date","es":""},"value":"5.5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Remeasured lease liability","es":""},"answer":261264.5,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"answer":122509.96,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Right-of-use asset after adjustment","es":""},"answer":253563.38,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured lease liability","es":""},"value":261264.5,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability at the end of year 3 (before remeasurement)","es":""},"value":138754.54,"unit":"EUR"}],"result":122509.96,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Right-of-use asset after adjustment","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Right-of-use asset at the end of year 3","es":""},"value":131053.42,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"value":122509.96,"unit":"EUR"}],"result":253563.38,"unit":"EUR"}],"rationale":{"fr":"","en":"A change in the lease term requires the revised payments (3 × 50,000 then 3 × 55,000) to be discounted at a revised rate, here the incremental borrowing rate of 5.5% at the reassessment date (IFRS 16, paras. 40(a) and 41).","es":""},"references":["REF.IFRS16.40","REF.IFRS16.39"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000084","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"PURCHASE_OPTION_REASSESSMENT","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"revised-rate"},"references":["IFRS 16 §40","IFRS 16 §41","IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"An operator leases network equipment for 5 years (30,000 a year at year end, initial rate of 6%). The contract includes a purchase option of 20,000 at the end of year 5, judged not reasonably certain at the commencement date. At the end of year 2, the operator decides to integrate the equipment permanently into its network through significant adaptations it has itself initiated; exercise of the option becomes reasonably certain (case data). The implicit rate cannot be determined.","es":""},"explanation":{"fr":"","en":"The change in the assessment of the purchase option requires a revised rate, and the revised payments include the exercise price (IFRS 16, paras. 40(b) and 41): 30,000 + 30,000 + (30,000 + 20,000) = 110,000. Present value at 7%: 28,037.38 + 26,203.16 + 40,814.89 = 95,055.44 (exact total). Adjustment = 95,055.44 − 80,190.35 = 14,865.09 to the right-of-use asset. Consequence: the right-of-use asset will now be depreciated to the end of the useful life of the equipment (IFRS 16, para. 32).","es":""},"common_error":{"fr":"","en":"Leaving the option exercise price out of the revised payments, or keeping the 6% rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease liability at the end of year 2","es":""},"value":"80190.35","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset at the end of year 2","es":""},"value":"75822.55","unit":"EUR"},{"label":{"fr":"","en":"Incremental borrowing rate at the reassessment date","es":""},"value":"7","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total undiscounted revised payments (years 3 to 5, option included)","es":""},"answer":110000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Remeasured lease liability","es":""},"answer":95055.44,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"answer":14865.09,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured lease liability","es":""},"value":95055.44,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability at the end of year 2","es":""},"value":80190.35,"unit":"EUR"}],"result":14865.09,"unit":"EUR"}],"rationale":{"fr":"","en":"Consequence: the right-of-use asset will now be depreciated to the end of the useful life of the equipment (IFRS 16, para. 32).","es":""},"references":["REF.IFRS16.40","REF.IFRS16.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000085","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"INDEX_REMEASUREMENT_UNCHANGED_RATE","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"unchanged-rate"},"references":["IFRS 16 §42","IFRS 16 §43","IFRS 16 §39"],"exercise":{"prompt":{"fr":"","en":"A power producer leases the land of a solar plant; the annual payment, made at year end, is linked to a price index. At the beginning of year 5, the revision provided in the contract takes effect: the payment rises from 25,000 to 26,000 for the remaining 4 years. Calculate the remeasurement.","es":""},"explanation":{"fr":"","en":"A change in payments caused by an index is remeasured when the adjustment takes effect, at the unchanged original rate (IFRS 16, paras. 42(b) and 43); the current 6% rate is a trap. 26,000 × 3.587526 (4-year annuity at 4.5%) = 93,275.67. Adjustment = 93,275.67 − 89,688.14 = 3,587.53, added to the right-of-use asset (IFRS 16, para. 39).","es":""},"common_error":{"fr":"","en":"Using the current incremental borrowing rate, as for a change in lease term.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease liability before remeasurement (4 payments of 25,000)","es":""},"value":"89688.14","unit":"EUR"},{"label":{"fr":"","en":"Original discount rate","es":""},"value":"4.5","unit":"PERCENT"},{"label":{"fr":"","en":"Lessee's current incremental borrowing rate","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Remeasured lease liability","es":""},"answer":93275.67,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"answer":3587.53,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured lease liability","es":""},"value":93275.67,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before remeasurement (4 payments of 25,000)","es":""},"value":89688.14,"unit":"EUR"}],"result":3587.53,"unit":"EUR"}],"rationale":{"fr":"","en":"A change in payments caused by an index is remeasured when the adjustment takes effect, at the unchanged original rate (IFRS 16, paras. 42(b) and 43)","es":""},"references":["REF.IFRS16.42","REF.IFRS16.39"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000086","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"RVG_REMEASUREMENT","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"unchanged-rate"},"references":["IFRS 16 §42","IFRS 16 §43","IFRS 16 §39"],"exercise":{"prompt":{"fr":"","en":"A company leases a vehicle fleet for 4 years and guarantees the lessor a residual value of 60,000 at the end of the lease. At the commencement date, it expected a residual value above 60,000: no amount expected under the guarantee. At the end of year 2, the residual value expected at the end of year 4 is only 52,000.","es":""},"explanation":{"fr":"","en":"The amount expected under the guarantee goes from 0 to 60,000 − 52,000 = 8,000: the liability is remeasured (IFRS 16, para. 42(a)) at the unchanged original rate (IFRS 16, para. 43). 8,000 / 1.05² = 7,256.24, added to the right-of-use asset (IFRS 16, para. 39).","es":""},"common_error":{"fr":"","en":"Including the full 60,000 guaranteed, or discounting at the current rate of 6.5%.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Guaranteed residual value","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Expected residual value at the end of year 4","es":""},"value":"52000","unit":"EUR"},{"label":{"fr":"","en":"Original discount rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Current incremental borrowing rate","es":""},"value":"6.5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Amount the lessee expects to pay under the guarantee","es":""},"answer":8000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Increase in the lease liability (and in the right-of-use asset)","es":""},"answer":7256.24,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Amount the lessee expects to pay under the guarantee","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Guaranteed residual value","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected residual value at the end of year 4","es":""},"value":52000,"unit":"EUR"}],"result":8000,"unit":"EUR","rationale":{"fr":"","en":"The amount expected under the guarantee goes from 0 to 60,000 − 52,000 = 8,000: the liability is remeasured (IFRS 16, para. 42(a)) at the unchanged original rate (IFRS 16, para. 43).","es":""}},{"step":"S2","meaning":{"fr":"","en":"Increase in the lease liability (and in the right-of-use asset)","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount the lessee expects to pay under the guarantee","es":""},"value":8000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Original discount rate","es":""},"value":5,"unit":"PERCENT"}],"result":7256.24,"unit":"EUR"}],"references":["REF.IFRS16.42","REF.IFRS16.43","REF.IFRS16.39"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000087","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"REMEASUREMENT_ENTRY_INCREASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"entry"},"references":["IFRS 16 §39","IFRS 16 §42","IFRS 16 §43"],"exercise":{"prompt":{"fr":"","en":"A production studio leases a stage; 3 annual payments of 32,000 remain (lease liability: 87,143.94 at the original rate of 5%). The index revision provided in the lease takes effect and raises the remaining payments to 33,280; the liability remeasured at 5% is 90,629.69. Record the remeasurement entry.","es":""},"explanation":{"fr":"","en":"Increase in the liability = 90,629.69 − 87,143.94 = 3,485.75. The remeasurement amount adjusts the right-of-use asset (IFRS 16, para. 39): nothing in profit or loss on the revision date. The 5% rate is kept because the change comes from an index (IFRS 16, paras. 42(b) and 43).","es":""},"common_error":{"fr":"","en":"Debiting a lease or interest expense for the increase, instead of the right-of-use asset.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RIGHT_OF_USE_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"REMEASUREMENT_GAIN","text":{"fr":"","en":"Gain on remeasurement of the lease liability (profit or loss)","es":""}},{"id":"INTEREST_EXPENSE","text":{"fr":"","en":"Interest expense","es":""}},{"id":"LEASE_EXPENSE","text":{"fr":"","en":"Lease expense (profit or loss)","es":""}}],"lines":[{"id":"L1","account":"RIGHT_OF_USE_ASSET","side":"DEBIT","amount":3485.75},{"id":"L2","account":"LEASE_LIABILITY","side":"CREDIT","amount":3485.75}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000088","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"REMEASUREMENT_DECREASE_EXCESS_PL","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"entry"},"references":["IFRS 16 §39","IFRS 16 §42","IFRS 16 §43"],"exercise":{"prompt":{"fr":"","en":"A carrier leases vans; the lease liability includes a payment of 30,000 expected under a residual value guarantee, due in 1 year (original rate 5%). The second-hand market has recovered: the lessee no longer expects to pay anything under the guarantee. The right-of-use asset is carried at only 20,000. Record the entry (generic accounts).","es":""},"explanation":{"fr":"","en":"Decrease in the liability = 30,000 / 1.05 = 28,571.43 (unchanged rate, IFRS 16, paras. 42(a) and 43). The right-of-use asset is reduced to zero (20,000) and the rest, 8,571.43, is recognised in profit or loss (IFRS 16, para. 39). Check: 28,571.43 = 20,000 + 8,571.43. The name of the profit or loss account is a choice of the example.","es":""},"common_error":{"fr":"","en":"Crediting the right-of-use asset with 28,571.43, which would make it negative.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RIGHT_OF_USE_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"REMEASUREMENT_GAIN","text":{"fr":"","en":"Gain on remeasurement of the lease liability (profit or loss)","es":""}},{"id":"INTEREST_EXPENSE","text":{"fr":"","en":"Interest expense","es":""}},{"id":"LEASE_EXPENSE","text":{"fr":"","en":"Lease expense (profit or loss)","es":""}}],"lines":[{"id":"L1","account":"LEASE_LIABILITY","side":"DEBIT","amount":28571.43},{"id":"L2","account":"RIGHT_OF_USE_ASSET","side":"CREDIT","amount":20000},{"id":"L3","account":"REMEASUREMENT_GAIN","side":"CREDIT","amount":8571.43}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000089","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"REASSESSMENT_TRIGGER_AND_RATE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"how"},"references":["IFRS 16 §20","IFRS 16 §40","IFRS 16 §42","IFRS 16 §43","IFRS 16 §41"],"exercise":{"prompt":{"fr":"","en":"For each situation (no amendment has been signed), state the treatment of the lease liability at the date considered.","es":""},"explanation":{"fr":"","en":"Lease term: revised rate (IFRS 16, paras. 40(a), 41). Index or market rent review: remeasurement at the unchanged rate, but only when the adjustment takes effect (IFRS 16, paras. 42(b), 43). Residual value guarantee: unchanged rate (IFRS 16, paras. 42(a), 43). Floating interest rate: revised rate reflecting the change (IFRS 16, para. 43). A market rise with no clause and no event within the lessee's control triggers nothing (IFRS 16, para. 20).","es":""},"common_error":{"fr":"","en":"Remeasuring as soon as the index is published: remeasurement occurs only when the adjustment takes effect.","es":""},"format":"CLASSIFICATION","categories":[{"id":"REVISED","text":{"fr":"","en":"Remeasurement at a revised rate","es":""}},{"id":"UNCHANGED","text":{"fr":"","en":"Remeasurement at the unchanged rate","es":""}},{"id":"NONE","text":{"fr":"","en":"No remeasurement at this date","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The lessee exercises an extension option that had not been included in the lease term","es":""},"category":"REVISED"},{"id":"I2","text":{"fr":"","en":"In November, the index is published; the revised payment will apply only from the following 1 January (date considered: November)","es":""},"category":"NONE"},{"id":"I3","text":{"fr":"","en":"Rents in the area rise sharply; the lease provides for no revision","es":""},"category":"NONE"},{"id":"I4","text":{"fr":"","en":"The market rent review provided in the lease takes effect","es":""},"category":"UNCHANGED"},{"id":"I5","text":{"fr":"","en":"The amount expected under a residual value guarantee increases","es":""},"category":"UNCHANGED"},{"id":"I6","text":{"fr":"","en":"The payment, calculated on a floating interest rate, changes with that rate","es":""},"category":"REVISED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000090","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"HEALTHCARE","tested_point":"INDEX_REMEASUREMENT_REVIEW","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"pitfalls"},"references":["IFRS 16 §42","IFRS 16 §43","IFRS 16 §39"],"exercise":{"prompt":{"fr":"","en":"A clinic leases an imaging machine; the payment is indexed. Review the remeasurement working paper and spot the incorrect steps.","es":""},"explanation":{"fr":"","en":"The date (S1) and the adjustment to the right-of-use asset (S4, IFRS 16, para. 39) are correct, as is the new depreciation (S5). However, an index is remeasured at the unchanged rate (IFRS 16, para. 43) and on the basis of the revised contractual payments only (IFRS 16, para. 42).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The index was published on 15 November; the revised payment applies from 1 January: the remeasurement is made on 1 January.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The revised payments are discounted at the clinic's current incremental borrowing rate (6%), more recent than the original rate (4%).","es":""},"erroneous":true,"correction":{"fr":"","en":"For an index, the rate remains unchanged (4%); only a floating interest rate would justify a revised rate (IFRS 16, para. 43).","es":""}},{"id":"S3","text":{"fr":"","en":"As a precaution, the payments for later years include a further 2% annual rise in the index.","es":""},"erroneous":true,"correction":{"fr":"","en":"The revised payments are based on the revised contractual payments for the remaining term, without anticipating future rises (IFRS 16, para. 42).","es":""}},{"id":"S4","text":{"fr":"","en":"The remeasurement difference is added to the right-of-use asset.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"Depreciation of the right-of-use asset is recalculated over the remaining term from the new carrying amount.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000091","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"TERM_DECREASE_REVIEW","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"remeasurement-rule"},"references":["IFRS 16 §21","IFRS 16 §40","IFRS 16 §41","IFRS 16 §39","IFRS 16 §37"],"exercise":{"prompt":{"fr":"","en":"At the end of year 3, a lessee does not exercise an extension option that had been included in the lease term: the non-cancellable period changes. The recalculated lease liability decreases by 52,000; the right-of-use asset is carried at 45,000. Review the analysis and spot the errors.","es":""},"explanation":{"fr":"","en":"The change in the non-cancellable period is a change in the lease term (IFRS 16, para. 21) that requires a revised rate (IFRS 16, para. 40(a)) determined at the reassessment date (IFRS 16, para. 41). A decrease exceeding the carrying amount of the right-of-use asset reduces it to zero, with the rest going to profit or loss (IFRS 16, para. 39). Interest follows the revised rate (IFRS 16, para. 37).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The lease term changes: the liability is remeasured using a revised rate.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The revised rate used is the incremental borrowing rate at the commencement date of the lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"The revised rate is the implicit rate for the remaining term if readily determinable, otherwise the incremental borrowing rate at the reassessment date (IFRS 16, para. 41).","es":""}},{"id":"S3","text":{"fr":"","en":"The right-of-use asset is reduced by 52,000 and stands at −7,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"The right-of-use asset is reduced to zero (−45,000) and the remaining 7,000 is recognised in profit or loss (IFRS 16, para. 39).","es":""}},{"id":"S4","text":{"fr":"","en":"After the remeasurement, there is no right-of-use asset left to depreciate.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"Interest for subsequent periods is calculated at the revised rate.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000092","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"MARKET_RENT_REVIEW_CASE","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"judgment"},"references":["IFRS 16 §20","IFRS 16 §39","IFRS 16 §42","IFRS 16 §43"],"exercise":{"prompt":{"fr":"","en":"Analyse Bureaux du Parc's situation, then answer the questions.","es":""},"explanation":{"fr":"","en":"The market rent review provided in the lease falls under para. 42(b): remeasurement when the adjustment takes effect, at the unchanged rate (IFRS 16, paras. 42-43), difference to the right-of-use asset (IFRS 16, para. 39). The general market rise is not an event within the lessee's control (IFRS 16, para. 20).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Bureaux du Parc leases its headquarters for 100,000 a year, paid at year end; the original discount rate is 4%. The lease provides for a market rent review every 3 years. The review is negotiated in March and the new payment of 105,000 applies from 1 July, for the last 4 years of the lease (simplifying assumption: 4 annual payments remaining at the effective date). In addition, rents for neighbouring offices rose by 10% during the year.","es":""},"parts":[{"prompt":{"fr":"","en":"On what date is the lease liability remeasured?","es":""},"explanation":{"fr":"","en":"Remeasurement for an index or a rate, including a market rent review, happens only when the cash flows actually change (IFRS 16, para. 42).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In March, as soon as the new payment is agreed","es":""},"correct":false,"feedback":{"fr":"","en":"The agreement does not yet change the cash flows: remeasurement waits until the adjustment takes effect.","es":""}},{"id":"B","text":{"fr":"","en":"On 1 July, when the new payment applies","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only at the end of the lease","es":""},"correct":false,"feedback":{"fr":"","en":"The change in payment affects the whole remaining term: it must be reflected as soon as it takes effect.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Calculate the increase in the lease liability (4-year annuity factor at 4%: 3.629895).","es":""},"explanation":{"fr":"","en":"5,000 × 3.629895 = 18,149.48 at the unchanged rate of 4% (IFRS 16, para. 43), added to the right-of-use asset (IFRS 16, para. 39).","es":""},"common_error":{"fr":"","en":"Discounting the increase at a revised rate: an indexed rent change is remeasured at the unchanged rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual increase in the payment","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Increase in the liability and in the right-of-use asset","es":""},"answer":18149.48,"tolerance":1,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Increase in the liability and in the right-of-use asset","es":""},"expression":"a * ((1 - 1 / (1 + b)^4) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual increase in the payment","es":""},"value":5000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":4,"unit":"PERCENT"}],"result":18149.48,"unit":"EUR"}],"rationale":{"fr":"","en":"5,000 × 3.629895 = 18,149.48 at the unchanged rate of 4% (IFRS 16, para. 43), added to the right-of-use asset (IFRS 16, para. 39).","es":""},"references":["REF.IFRS16.39","REF.IFRS16.43"]}},{"prompt":{"fr":"","en":"The 10% rise in rents for neighbouring offices requires Bureaux du Parc to reassess its lease term.","es":""},"explanation":{"fr":"","en":"False. Reassessing the lease term requires a significant event or change in circumstances within the lessee's control (IFRS 16, para. 20); a market movement is not one.","es":""},"common_error":{"fr":"","en":"Reassessing the term after market rents rise: only an event within the lessee's control triggers it.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000093","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"TRANSPORT","tested_point":"FLOATING_RATE_EXCEPTION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000010","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"unchanged-rate"},"references":["IFRS 16 §43","IFRS 16 §42"],"exercise":{"prompt":{"fr":"","en":"A rail company leases wagons; the payment is calculated each year on a floating benchmark interest rate plus a margin. That rate rises and next year's payment is revised accordingly. Which discount rate should be used to remeasure the lease liability?","es":""},"explanation":{"fr":"","en":"For a change in payments linked to an index or a rate, the rate stays unchanged, unless it results from a change in floating interest rates: the lessee then uses a revised rate reflecting that change (IFRS 16, paras. 42(b) and 43).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The original rate, as for any change linked to an index or a rate","es":""},"correct":false,"feedback":{"fr":"","en":"The unchanged rate is the general rule, but a change in floating interest rates is the exception.","es":""}},{"id":"B","text":{"fr":"","en":"A revised rate that reflects the change in the interest rate","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"None: a variable payment is never remeasured","es":""},"correct":false,"feedback":{"fr":"","en":"Payments that depend on an index or a rate are part of the liability and are remeasured when the cash flows change (para. 42).","es":""}},{"id":"D","text":{"fr":"","en":"The incremental borrowing rate at the commencement date","es":""},"correct":false,"feedback":{"fr":"","en":"That is the original rate: it does not reflect the change in the interest rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000094","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"SCOPE_DECREASE_CALC","difficulty":"ADVANCED","estimated_time_s":420,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"numeric-example"},"references":["IFRS 16 §44","IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"A retailer leases 2,000 m² of retail space for 5 years (80,000 a year at year end, rate of 5%). At the beginning of year 3, an amendment reduces the space to 1,500 m² for the remaining 3 years, with a payment of 62,000 a year. The implicit rate cannot be determined. Method adopted for the exercise (not required by the standard): reduction in proportion to the space handed back, then remeasurement of the rest.","es":""},"explanation":{"fr":"","en":"The amendment reduces the scope without adding a right of use: it is not a separate lease (IFRS 16, para. 44). Proportion handed back: 500 / 2,000 = 25%. Right-of-use asset − 207,814.88 × 25% = 51,953.72; liability − 217,859.84 × 25% = 54,464.96; gain 2,511.24 in profit or loss (IFRS 16, para. 46(a)). New liability at the revised rate at the effective date (IFRS 16, para. 45(c)): 62,000 × 2.673012 = 165,726.74 (exact calculation). Balance before remeasurement: 217,859.84 − 54,464.96 = 163,394.88; difference 2,331.86 added to the right-of-use asset (IFRS 16, para. 46(b)). The proportional basis is the method adopted for the exercise.","es":""},"common_error":{"fr":"","en":"Recognising the whole difference between the old and the new liability in profit or loss, or keeping the 5% rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease liability at the effective date","es":""},"value":"217859.84","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset at the effective date","es":""},"value":"207814.88","unit":"EUR"},{"label":{"fr":"","en":"Incremental borrowing rate at the effective date","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"3-year annuity factor at 6%","es":""},"value":"2.673012","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Decrease in the right-of-use asset (25%)","es":""},"answer":51953.72,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Decrease in the lease liability (25%)","es":""},"answer":54464.96,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Gain on modification in profit or loss","es":""},"answer":2511.24,"tolerance":1,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"New lease liability at the revised rate","es":""},"answer":165726.74,"tolerance":1,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Adjustment (increase) to the right-of-use asset","es":""},"answer":2331.86,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S4","meaning":{"fr":"","en":"New lease liability at the revised rate","es":""},"expression":"a * ((1 - 1 / (1 + b)^3) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"with a payment of 62,000 a year","es":""},"value":62000},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate at the effective date","es":""},"value":6,"unit":"PERCENT"}],"result":165726.74,"unit":"EUR","rationale":{"fr":"","en":"New liability at the revised rate at the effective date (IFRS 16, para. 45(c)): 62,000 × 2.673012 = 165,726.74 (exact calculation).","es":""}}],"references":["REF.IFRS16.44","REF.IFRS16.45","REF.IFRS16.46"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000095","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"EXTENSION_NOT_SEPARATE_CALC","difficulty":"ADVANCED","estimated_time_s":360,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"other-modifications"},"references":["IFRS 16 §44","IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"A TV channel leases a studio; 2 annual payments of 50,000 remain (original rate 5%). It signs an amendment: the lease is extended by 3 years and the payment becomes 48,000 a year for the remaining 5 years. Incremental borrowing rate at the effective date: 6% (implicit rate not determinable).","es":""},"explanation":{"fr":"","en":"An extension adds no asset: it is not a separate lease (IFRS 16, para. 44). The liability is remeasured at the revised rate at the effective date (IFRS 16, para. 45(c)): 48,000 × 4.212364 = 202,193.46 (exact calculation). It is not a decrease in scope: the whole difference (202,193.46 − 92,970.52 = 109,222.94) adjusts the right-of-use asset (IFRS 16, para. 46(b)), giving 197,222.94, with no effect on profit or loss.","es":""},"common_error":{"fr":"","en":"Thinking that the lower annual payment gives a gain: the modification concerns the same asset, so the difference adjusts the right-of-use asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease liability before the modification","es":""},"value":"92970.52","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset before the modification","es":""},"value":"88000","unit":"EUR"},{"label":{"fr":"","en":"5-year annuity factor at 6%","es":""},"value":"4.212364","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"New lease liability","es":""},"answer":202193.46,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"answer":109222.94,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Right-of-use asset after the modification","es":""},"answer":197222.94,"tolerance":1,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Amount recognised in profit or loss at the effective date","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Adjustment to the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"New lease liability","es":""},"value":202193.46,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before the modification","es":""},"value":92970.52,"unit":"EUR"}],"result":109222.94,"unit":"EUR","rationale":{"fr":"","en":"It is not a decrease in scope: the whole difference (202,193.46 − 92,970.52 = 109,222.94) adjusts the right-of-use asset (IFRS 16, para. 46(b)), giving 197,222.94, with no effect on profit or loss.","es":""}}],"references":["REF.IFRS16.44","REF.IFRS16.45","REF.IFRS16.46"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000096","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"RENT_DECREASE_ONLY_CALC","difficulty":"INTERMEDIATE","estimated_time_s":300,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"other-modifications"},"references":["IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"A software publisher leases racks in a data centre; 3 annual payments of 40,000 remain (original rate 4%). The lessor agrees to reduce the payment to 34,000 for the remaining 3 years; nothing else changes (the context has no link with Covid-19). Incremental borrowing rate at the effective date: 5%.","es":""},"explanation":{"fr":"","en":"No asset is added or handed back: a modification that is not a separate lease, remeasured at the revised rate (IFRS 16, para. 45(c)): 34,000 × 2.723248 = 92,590.43. A mere rent reduction is not a decrease in scope: the decrease in the liability (111,003.64 − 92,590.43 = 18,413.21) reduces the right-of-use asset, with no gain (IFRS 16, para. 46(b)).","es":""},"common_error":{"fr":"","en":"Recognising a gain of 18,413.21 in profit or loss as for a partial termination.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease liability before the modification","es":""},"value":"111003.64","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset before the modification","es":""},"value":"105000","unit":"EUR"},{"label":{"fr":"","en":"3-year annuity factor at 5%","es":""},"value":"2.723248","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"New lease liability","es":""},"answer":92590.43,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Decrease in the right-of-use asset","es":""},"answer":18413.21,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Gain recognised in profit or loss","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Decrease in the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability before the modification","es":""},"value":111003.64,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"New lease liability","es":""},"value":92590.43,"unit":"EUR"}],"result":18413.21,"unit":"EUR","rationale":{"fr":"","en":"A mere rent reduction is not a decrease in scope: the decrease in the liability (111,003.64 − 92,590.43 = 18,413.21) reduces the right-of-use asset, with no gain (IFRS 16, para. 46(b)).","es":""}}],"references":["REF.IFRS16.45","REF.IFRS16.46"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000097","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"SEPARATE_LEASE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"separate-lease"},"references":["IFRS 16 §44","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"A company leases 3 floors of offices. It signs an amendment giving it, in addition, the use of a 4th floor for 3 years, for an additional payment of 25,000 a year at year end, equal to the market rent for that floor. Incremental borrowing rate at the commencement date for this floor: 5% (implicit rate not determinable). Lease liability for the 3-floor lease before the amendment: 310,000.","es":""},"explanation":{"fr":"","en":"An additional asset is added and the increase in payment matches its market price: a separate lease (IFRS 16, para. 44). It is measured as a new lease: 25,000 × 2.723248 = 68,081.20 (IFRS 16, para. 26). The original lease is not modified: 310,000.","es":""},"common_error":{"fr":"","en":"Remeasuring the whole lease at a revised rate as for a modification that is not a separate lease.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual payment for the 4th floor (market price)","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Term","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Lease liability of the new lease (4th floor)","es":""},"answer":68081.2,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Lease liability of the 3-floor lease after the amendment","es":""},"answer":310000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Lease liability of the new lease (4th floor)","es":""},"expression":"a * ((1 - 1 / (1 + b)^3) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment for the 4th floor (market price)","es":""},"value":25000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":5,"unit":"PERCENT"}],"result":68081.2,"unit":"EUR"}],"rationale":{"fr":"","en":"An additional asset is added and the increase in payment matches its market price: a separate lease (IFRS 16, para. 44).","es":""},"references":["REF.IFRS16.44","REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000098","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"SCOPE_DECREASE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"entry"},"references":["IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"A logistics company hands back half of the warehouse it leases (amendment). At the effective date: right-of-use asset 120,000; lease liability 126,500. Method adopted (not required by the standard): proportional reduction of 50%. Record the partial termination entry (the remeasurement of the rest will be a separate entry).","es":""},"explanation":{"fr":"","en":"Decrease in scope: the right-of-use asset is reduced by 120,000 × 50% = 60,000 and the liability by 126,500 × 50% = 63,250; the difference of 3,250 is a gain recognised in profit or loss (IFRS 16, para. 46(a)). Check: 63,250 = 60,000 + 3,250.","es":""},"common_error":{"fr":"","en":"Taking the difference to the right-of-use asset: for a scope decrease, the difference is a gain or loss in profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RIGHT_OF_USE_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"MODIFICATION_GAIN","text":{"fr":"","en":"Gain on lease modification (profit or loss)","es":""}},{"id":"MODIFICATION_LOSS","text":{"fr":"","en":"Loss on lease modification (profit or loss)","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"LEASE_LIABILITY","side":"DEBIT","amount":63250},{"id":"L2","account":"RIGHT_OF_USE_ASSET","side":"CREDIT","amount":60000},{"id":"L3","account":"MODIFICATION_GAIN","side":"CREDIT","amount":3250}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000099","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"RENT_DECREASE_ENTRY","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"entry"},"references":["IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"A telecom operator renegotiates the payment for its antenna sites: same scope, same term, lower payment. At the effective date, the lease liability goes from 150,000 to 138,400 (revised rate applied). Record the entry.","es":""},"explanation":{"fr":"","en":"A lower payment with no change in scope is one of the 'other modifications': the decrease in the liability (150,000 − 138,400 = 11,600) reduces the right-of-use asset, with no gain in profit or loss (IFRS 16, para. 46(b)). The modified liability is measured at the effective date by discounting the revised payments at a revised rate (IFRS 16, para. 45(c)).","es":""},"common_error":{"fr":"","en":"Crediting a gain on modification: no part of the right of use is handed back.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RIGHT_OF_USE_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"MODIFICATION_GAIN","text":{"fr":"","en":"Gain on lease modification (profit or loss)","es":""}},{"id":"MODIFICATION_LOSS","text":{"fr":"","en":"Loss on lease modification (profit or loss)","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"LEASE_LIABILITY","side":"DEBIT","amount":11600},{"id":"L2","account":"RIGHT_OF_USE_ASSET","side":"CREDIT","amount":11600}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000100","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"MODIFICATION_TYPE_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"how"},"references":["IFRS 16 §44","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"Classify each amendment according to its treatment by the lessee.","es":""},"explanation":{"fr":"","en":"Separate lease: asset added and price commensurate with the adjusted stand-alone price (IFRS 16, para. 44); an addition at a clearly lower price not justified by the circumstances is not one. Handing back assets or space: decrease in scope, gain or loss (IFRS 16, para. 46(a)). Extension, lower or higher payment, addition that is not separate: adjustment to the right-of-use asset (IFRS 16, para. 46(b)).","es":""},"common_error":{"fr":"","en":"Treating an addition well below market price as a separate lease: the price must match the adjusted stand-alone price.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SEPARATE","text":{"fr":"","en":"Separate lease (para. 44)","es":""}},{"id":"DECREASE","text":{"fr":"","en":"Decrease in scope: gain or loss (para. 46(a))","es":""}},{"id":"OTHER","text":{"fr":"","en":"Other modification: adjustment to the right-of-use asset (para. 46(b))","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Adding 3 trucks to the leased fleet, at the market rental price","es":""},"category":"SEPARATE"},{"id":"I2","text":{"fr":"","en":"Handing back one floor out of four","es":""},"category":"DECREASE"},{"id":"I3","text":{"fr":"","en":"Extending the lease by 2 years","es":""},"category":"OTHER"},{"id":"I4","text":{"fr":"","en":"10% reduction in the payment, with no other change","es":""},"category":"OTHER"},{"id":"I5","text":{"fr":"","en":"Adding a neighbouring warehouse for a rent far below market, granted to keep the customer","es":""},"category":"OTHER"},{"id":"I6","text":{"fr":"","en":"Handing back 5 of the 20 leased vehicles","es":""},"category":"DECREASE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000101","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"HOSPITALITY","tested_point":"MODIFICATION_JUDGMENT_CASE","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"judgment"},"references":["IFRS 16 §44","IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"Analyse the amendment signed by Hôtels Rivage, then answer.","es":""},"explanation":{"fr":"","en":"The wing adds an asset at a price that can be judged commensurate with the stand-alone price adjusted for the circumstances: a separate lease (IFRS 16, para. 44). The extension of the main hotel adds no asset: a modification that is not a separate lease, remeasured at the revised rate at the effective date (IFRS 16, para. 45(c)), difference to the right-of-use asset (IFRS 16, para. 46(b)).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Hôtels Rivage leases a 120-room hotel. An amendment, signed and effective on the same day, provides for two changes: (1) the lease of a neighbouring 30-room wing for 8 years, at a rent 5% below the lessor's list price, a discount the lessor justifies by the absence of marketing and vacancy costs; (2) a 4-year extension of the lease of the main hotel. The implicit rate cannot be determined; the group's incremental borrowing rate has gone from 3.5% at the commencement date to 5% at the date of the amendment.","es":""},"parts":[{"prompt":{"fr":"","en":"How should the lease of the 30-room wing be analysed?","es":""},"explanation":{"fr":"","en":"Both conditions in para. 44 can be considered met; the discount, justified by the circumstances, is a matter of documented judgment (IFRS 16, para. 44).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separate lease: asset added and price commensurate with the stand-alone price adjusted for the circumstances","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Not a separate lease, because the rent is below the list price","es":""},"correct":false,"feedback":{"fr":"","en":"The standard allows the stand-alone price to be adjusted for the circumstances of the contract; a discount justified by the absence of costs can remain compatible.","es":""}},{"id":"C","text":{"fr":"","en":"Decrease in scope of the original lease","es":""},"correct":false,"feedback":{"fr":"","en":"An asset is added; nothing is handed back.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Which rate should be used to remeasure the lease liability of the main hotel?","es":""},"explanation":{"fr":"","en":"Implicit rate for the remaining term if readily determinable, otherwise the incremental borrowing rate at the effective date (IFRS 16, para. 45(c)).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"3.5%, the rate at the commencement date","es":""},"correct":false,"feedback":{"fr":"","en":"A modification that is not a separate lease requires a revised rate.","es":""}},{"id":"B","text":{"fr":"","en":"5%, the incremental borrowing rate at the effective date of the modification","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The average of the two rates, weighted by the terms","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided for: the standard refers to the rate at the effective date.","es":""}}],"id":"P2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"The extension of the main hotel lease leads to the increase in the lease liability being recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"False. For modifications other than a decrease in scope, the remeasurement difference adjusts the right-of-use asset (IFRS 16, para. 46(b)).","es":""},"common_error":{"fr":"","en":"Taking the liability increase from an extension to profit or loss: it adjusts the right-of-use asset.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000102","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"MODIFICATION_WORKPAPER_REVIEW","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"pitfalls"},"references":["IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"A pharmaceutical laboratory hands back 30% of the space of its research centre (amendment). Review the working paper and spot the errors.","es":""},"explanation":{"fr":"","en":"A reduction in space is a modification that is not a separate lease: revised rate (IFRS 16, para. 45(c)), terminated part in profit or loss (IFRS 16, para. 46(a)), rest of the remeasurement to the right-of-use asset (IFRS 16, para. 46(b)). The basis for calculating the terminated part is a documented choice.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"No asset is added: the modification is not a separate lease.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The revised payments are discounted at the original rate of the lease (3%).","es":""},"erroneous":true,"correction":{"fr":"","en":"Revised rate: implicit rate for the remaining term or incremental borrowing rate at the effective date (IFRS 16, para. 45(c)).","es":""}},{"id":"S3","text":{"fr":"","en":"The right-of-use asset is reduced by 30% and the difference with the decrease in the liability is recognised in profit or loss.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The remaining difference between the remeasured liability and the balance of the liability is also recognised in profit or loss.","es":""},"erroneous":true,"correction":{"fr":"","en":"Under the method adopted, this second difference adjusts the right-of-use asset, as for any other modification (IFRS 16, para. 46(b)).","es":""}},{"id":"S5","text":{"fr":"","en":"The paper states that the basis proportional to the space is required by IFRS 16.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard requires the partial termination to be reflected (IFRS 16, para. 46(a)); the proportional basis is a method adopted, to be justified.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000103","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"MODIFICATION_DISCOUNT_RATE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"not-separate"},"references":["IFRS 16 §45"],"exercise":{"prompt":{"fr":"","en":"For a modification that is not a separate lease, and whose implicit rate cannot be readily determined, which rate does the lessee use to discount the revised payments?","es":""},"explanation":{"fr":"","en":"Implicit rate for the remaining term if readily determinable; otherwise, the lessee's incremental borrowing rate at the effective date of the modification (IFRS 16, para. 45(c)).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The discount rate at the commencement date","es":""},"correct":false,"feedback":{"fr":"","en":"That would be the treatment of an index revision, not of a modification.","es":""}},{"id":"B","text":{"fr":"","en":"The lessee's incremental borrowing rate at the effective date of the modification","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The incremental borrowing rate at the next reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is determined at the effective date, not at the reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"The return the lessor expects on its other leases","es":""},"correct":false,"feedback":{"fr":"","en":"This rate is not a reference provided by the standard for the lessee.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000104","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RENT_CONCESSIONS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"COVID_EXPEDIENT_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"covid-concessions"},"references":["IFRS 16 §46A","IFRS 16 §46B"],"exercise":{"prompt":{"fr":"","en":"In 2021, because of the Covid-19 pandemic, the lessor of a shop defers the payments for April to June 2021; the deferred amounts are paid in 2022, with no increase, and no other clause changes. The lessee has elected the practical expedient: it may account for this deferral without assessing it as a lease modification.","es":""},"explanation":{"fr":"","en":"True. The concession is a direct consequence of the pandemic; the revised consideration is substantially the same; only payments originally due on or before 30 June 2022 are affected; no other term changes substantively (IFRS 16, para. 46B). A lessee that has made the para. 46A election accounts for the change as if it were not a modification (IFRS 16, para. 46A). A historical measure.","es":""},"common_error":{"fr":"","en":"Thinking that a mere deferral cannot qualify: the consideration may be 'substantially the same', not necessarily lower.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000105","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"IBOR_REFORM_EXPEDIENT","difficulty":"EXPERT","estimated_time_s":150,"lesson_id":"LS.IFRS16.000011","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"ibor-reform"},"references":["IFRS 16 §104","IFRS 16 §105","IFRS 16 §106","IFRS 16 §39","IFRS 16 §42"],"exercise":{"prompt":{"fr":"","en":"A lessee whose payments were linked to an IBOR rate sees that benchmark replaced by an alternative rate. Which statements are correct?","es":""},"explanation":{"fr":"","en":"The IBOR regime covers modifications that change the basis for determining payments as a result of the reform (IFRS 16, para. 104). Required change (direct and economically equivalent): remeasurement under para. 42 (IFRS 16, para. 105). Simultaneous changes: general rules for all of them (IFRS 16, para. 106).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The practical expedient covers only changes arising directly from the reform, with a new basis economically equivalent to the previous one.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"For a change required by the reform, the lessee remeasures the lease liability on the basis of the revised payments, under paragraph 42.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"If an extension is negotiated at the same time, the general modification rules apply to all the changes, including those required by the reform.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Any change linked to the reform is accounted for as a separate lease.","es":""},"correct":false,"feedback":{"fr":"","en":"No asset is added: the reform does not create a separate lease; it falls under para. 42 through the practical expedient.","es":""}},{"id":"E","text":{"fr":"","en":"The expedient allows the remeasurement difference to be recognised directly in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"A remeasurement under para. 42 follows the general rule: adjustment to the right-of-use asset (para. 39).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000106","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"CASH_FLOW_CLASSIFICATION","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS16.000012","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"cash-flows"},"references":["IFRS 16 §50"],"exercise":{"prompt":{"fr":"","en":"A store chain is preparing its statement of cash flows. Classify each lease-related payment.","es":""},"explanation":{"fr":"","en":"Principal of the lease liability: financing; interest: under the IAS 7 requirements for interest paid; short-term leases, low-value assets and variable payments not included in the liability: operating activities (IFRS 16, para. 50).","es":""},"common_error":{"fr":"","en":"Classifying all lease-related payments as financing, including those on exempt leases.","es":""},"format":"CLASSIFICATION","categories":[{"id":"FINANCING","text":{"fr":"","en":"Financing activities","es":""}},{"id":"OPERATING","text":{"fr":"","en":"Operating activities","es":""}},{"id":"IAS7_POLICY","text":{"fr":"","en":"Under the entity's policy for interest (IAS 7)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Part of the store payments that repays the principal of the lease liabilities","es":""},"category":"FINANCING"},{"id":"I2","text":{"fr":"","en":"Part of the store payments that is interest","es":""},"category":"IAS7_POLICY"},{"id":"I3","text":{"fr":"","en":"Additional rent equal to 2% of revenue, not included in the lease liability","es":""},"category":"OPERATING"},{"id":"I4","text":{"fr":"","en":"Payments for a pop-up shop leased for 5 months (short-term exemption)","es":""},"category":"OPERATING"},{"id":"I5","text":{"fr":"","en":"Payments for point-of-sale tablets under the low-value asset exemption","es":""},"category":"OPERATING"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000107","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS","IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"PRESENTATION_LOCATION","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000012","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"how"},"references":["IFRS 16 §47","IFRS 16 §48","IFRS 16 §49","IFRS 16 §58","IFRS 16 §60"],"exercise":{"prompt":{"fr":"","en":"Where does each item appear? The lessee presents its right-of-use assets and lease liabilities as separate line items in the statement of financial position.","es":""},"explanation":{"fr":"","en":"Assets and liabilities in the statement of financial position (IFRS 16, para. 47), the right that is investment property within investment property (IFRS 16, para. 48); interest in finance costs, separate from depreciation (IFRS 16, para. 49); maturity analysis and disclosure of the exemptions in the notes (IFRS 16, paras. 58 and 60).","es":""},"common_error":{"fr":"","en":"Presenting as right-of-use an asset that meets the investment property definition, or merging interest and depreciation.","es":""},"format":"CLASSIFICATION","categories":[{"id":"BALANCE_SHEET","text":{"fr":"","en":"Statement of financial position","es":""}},{"id":"PROFIT_OR_LOSS","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"NOTES","text":{"fr":"","en":"Notes","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Interest on lease liabilities, within finance costs","es":""},"category":"PROFIT_OR_LOSS"},{"id":"I2","text":{"fr":"","en":"Right-of-use asset for a sublet building meeting the definition of investment property","es":""},"category":"BALANCE_SHEET"},{"id":"I3","text":{"fr":"","en":"Maturity analysis of lease liabilities","es":""},"category":"NOTES"},{"id":"I4","text":{"fr":"","en":"Statement that the low-value asset exemption is applied","es":""},"category":"NOTES"},{"id":"I5","text":{"fr":"","en":"Depreciation charge for right-of-use assets","es":""},"category":"PROFIT_OR_LOSS"},{"id":"I6","text":{"fr":"","en":"Lease liabilities, on their own line","es":""},"category":"BALANCE_SHEET"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000108","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS","IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"DISCLOSURE_AMOUNTS_CALC","difficulty":"INTERMEDIATE","estimated_time_s":300,"lesson_id":"LS.IFRS16.000012","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"numeric-example"},"references":["IFRS 16 §50","IFRS 16 §53"],"exercise":{"prompt":{"fr":"","en":"A telecom operator is preparing the lease note for the year. Calculate the amounts requested.","es":""},"explanation":{"fr":"","en":"Interest = 250,000 × 4% = 10,000; principal = 60,000 − 10,000 = 50,000, in financing (IFRS 16, para. 50). Total outflow = 60,000 + 8,000 + 1,500 + 5,000 = 74,500 (IFRS 16, para. 53). Right-of-use asset = 240,000 − 48,000 = 192,000; liability = 250,000 + 10,000 − 60,000 = 200,000. The 14,500 for exempt leases and variable payments goes to operating activities (IFRS 16, para. 50).","es":""},"common_error":{"fr":"","en":"Limiting total cash outflow to the payment on the lease recognised on the balance sheet (60,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease liability at the beginning of the year","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Annual payment made at year end (lease on the balance sheet)","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Right-of-use asset at the beginning of the year","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Depreciation for the year","es":""},"value":"48000","unit":"EUR"},{"label":{"fr":"","en":"Payments made, short-term leases","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Payments made, low-value assets","es":""},"value":"1500","unit":"EUR"},{"label":{"fr":"","en":"Variable payments made, based on traffic (outside the liability)","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Interest expense for the year","es":""},"answer":10000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Repayment of principal (financing activities)","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total cash outflow for leases","es":""},"answer":74500,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Carrying amount of the right-of-use asset at the reporting date","es":""},"answer":192000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Lease liability at the reporting date","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Interest expense for the year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability at the beginning of the year","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":4,"unit":"PERCENT"}],"result":10000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Repayment of principal (financing activities)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment made at year end (lease on the balance sheet)","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest expense for the year","es":""},"value":10000,"unit":"EUR"}],"result":50000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Total cash outflow for leases","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment made at year end (lease on the balance sheet)","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Payments made, short-term leases","es":""},"value":8000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Payments made, low-value assets","es":""},"value":1500,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Variable payments made, based on traffic (outside the liability)","es":""},"value":5000,"unit":"EUR"}],"result":74500,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Carrying amount of the right-of-use asset at the reporting date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Right-of-use asset at the beginning of the year","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Depreciation for the year","es":""},"value":48000,"unit":"EUR"}],"result":192000,"unit":"EUR"},{"step":"S5","meaning":{"fr":"","en":"Lease liability at the reporting date","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability at the beginning of the year","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest expense for the year","es":""},"value":10000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual payment made at year end (lease on the balance sheet)","es":""},"value":60000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"references":["REF.IFRS16.50","REF.IFRS16.53"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000109","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"DISCLOSURE_NOTE_REVIEW","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000012","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"pitfalls"},"references":["IFRS 16 §52","IFRS 16 §53","IFRS 16 §54","IFRS 16 §58","IFRS 16 §60"],"exercise":{"prompt":{"fr":"","en":"An energy company submits its draft lease note. Spot the statements that do not comply with IFRS 16.","es":""},"explanation":{"fr":"","en":"A single note (IFRS 16, para. 52), amounts including capitalised costs (IFRS 16, para. 54), a separate maturity analysis (IFRS 16, para. 58), disclosure of the exemptions (IFRS 16, para. 60) and a breakdown by class (IFRS 16, para. 53).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Lease information is spread across four different notes, with no cross-references between them.","es":""},"erroneous":true,"correction":{"fr":"","en":"The information is grouped in a single note or separate section, with information presented elsewhere incorporated by cross-reference (IFRS 16, para. 52).","es":""}},{"id":"S2","text":{"fr":"","en":"Depreciation of right-of-use assets for cranes used to build a power plant is excluded from the table, since it was included in the cost of the plant.","es":""},"erroneous":true,"correction":{"fr":"","en":"The amounts in the table include costs included in the carrying amount of another asset during the period (IFRS 16, para. 54).","es":""}},{"id":"S3","text":{"fr":"","en":"The maturity analysis of lease liabilities is presented separately from that of other financial liabilities.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"The note states that the entity applies the short-term lease exemption.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"Depreciation and the carrying amount of right-of-use assets are broken down by class of underlying asset (land, cranes, vehicles).","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000110","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"OTHER_QUANTITATIVE_DISCLOSURES","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS16.000012","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"quantitative-disclosures"},"references":["IFRS 16 §54","IFRS 16 §55","IFRS 16 §56","IFRS 16 §58","IFRS 16 §53"],"exercise":{"prompt":{"fr":"","en":"Which statements about the lessee's quantitative disclosures are correct?","es":""},"explanation":{"fr":"","en":"Table unless a more appropriate format, capitalised costs included (IFRS 16, para. 54); short-term commitments if the portfolio is dissimilar (IFRS 16, para. 55); investment property: IAS 40 and exemption from items (a), (f), (h) and (j) (IFRS 16, para. 56); separate maturity analysis (IFRS 16, para. 58).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The paragraph 53 information is presented in a tabular format, unless another format is more appropriate.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"For right-of-use assets that are investment property, the lessee applies the IAS 40 disclosure requirements and need not provide some items of IFRS 16, para. 53, including depreciation and carrying amount by class.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The lessee discloses its short-term lease commitments when the portfolio at the reporting date is dissimilar to the one to which the short-term lease expense for the period relates.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The amounts in the table exclude costs included in the carrying amount of another asset.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: those costs are included (para. 54).","es":""}},{"id":"E","text":{"fr":"","en":"The maturity analysis of lease liabilities may be merged with that of other financial liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"It is presented separately (para. 58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000111","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS","IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"RETAIL","tested_point":"ADDITIONAL_DISCLOSURES_CASE","difficulty":"ADVANCED","estimated_time_s":420,"lesson_id":"LS.IFRS16.000012","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"judgment"},"references":["IFRS 16 §48","IFRS 16 §51","IFRS 16 §52","IFRS 16 §59","IFRS 16 §B48"],"exercise":{"prompt":{"fr":"","en":"Read Modéa's situation, then answer.","es":""},"explanation":{"fr":"","en":"Additional information is selected in the light of the para. 51 objective and its relevance (IFRS 16, paras. 59, B48); the right-of-use asset that is investment property is presented as investment property (IFRS 16, para. 48); information presented elsewhere may be incorporated by cross-reference (IFRS 16, para. 52).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Modéa operates 80 leased shops. A large part of the rents is variable, as a percentage of revenue, and is not included in the lease liability. Several leases contain significant extension options not included in the lease term. Modéa has signed the lease for its future central warehouse, which will only commence next year. It also leases an office building that it sublets in full; this right-of-use asset meets the definition of investment property. The note on financial debt already presents the group's liquidity management policy.","es":""},"parts":[{"prompt":{"fr":"","en":"Which additional information is probably relevant for Modéa?","es":""},"explanation":{"fr":"","en":"Variable payments, options and leases signed but not commenced are future cash outflows not reflected in the liability, mentioned in para. 59; relevance guides the choice (IFRS 16, paras. 59, B48).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The nature and size of the variable rents based on revenue","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The exposure to cash outflows from extension options not included","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The commitment under the warehouse lease signed but not yet commenced","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A full copy of the 80 leases in an appendix","es":""},"correct":false,"feedback":{"fr":"","en":"The aim is to help users assess the effect of leases; the lessee selects information that is relevant to users, not a mass of irrelevant detail (para. B48).","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Where does Modéa present the right-of-use asset for the sublet building?","es":""},"explanation":{"fr":"","en":"Right-of-use assets meeting the definition of investment property are presented as investment property (IFRS 16, para. 48).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the 'Right-of-use assets' line","es":""},"correct":false,"feedback":{"fr":"","en":"Separate presentation does not apply to rights meeting the definition of investment property.","es":""}},{"id":"B","text":{"fr":"","en":"Within investment property","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only in the notes, off the balance sheet","es":""},"correct":false,"feedback":{"fr":"","en":"The right-of-use asset is an asset recognised in the statement of financial position.","es":""}}],"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Modéa must copy in full into the lease note the liquidity policy already presented in the note on financial debt.","es":""},"explanation":{"fr":"","en":"False. The lessee need not repeat information already presented elsewhere in the financial statements, provided it is incorporated by cross-reference in the lease note (IFRS 16, para. 52).","es":""},"common_error":{"fr":"","en":"Repeating information already given elsewhere: a cross-reference from the lease note is enough.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000112","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"LESSOR_CLASSIFICATION_INDICATORS_JUDGMENT","difficulty":"ADVANCED","estimated_time_s":360,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"indicators"},"references":["IFRS 16 §62","IFRS 16 §63","IFRS 16 §65","IFRS 16 §66"],"exercise":{"prompt":{"fr":"","en":"Analyse the contract offered by Autoloc and conclude on its classification.","es":""},"explanation":{"fr":"","en":"Method: calculate the indicators, list the situations present or absent, check for contrary features, then conclude against the risks-and-rewards criterion (IFRS 16, paras. 62-65), at the inception date (IFRS 16, para. 66).","es":""},"common_error":{"fr":"","en":"Justifying the conclusion with a 90% or 75% threshold presented as an IFRS 16 rule.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Autoloc, a commercial vehicle lessor, leases a fleet of standard refrigerated trucks to a food distributor. The data below are those at the inception date (case data). The trucks are not tailored to the lessee alone: Autoloc could re-lease them without conversion.","es":""},"exhibits":[{"title":{"fr":"","en":"Contract data","es":""},"body":{"fr":"","en":"Fair value of the fleet: 1,200,000. Economic life: 6 years. Lease term: 5 years. Present value of the payments at the implicit rate: 1,140,000. At the end of the lease, the lessee may buy the trucks at their fair value at that date. No automatic transfer of ownership.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the two ratios useful for the analysis (in %).","es":""},"explanation":{"fr":"","en":"1,140,000 / 1,200,000 = 95%; 5 / 6 = 83.33%. These ratios shed light on the 'substantially all of the fair value' and 'major part of the economic life' situations (IFRS 16, para. 63); they are indicators, not thresholds.","es":""},"common_error":{"fr":"","en":"Treating the ratios as thresholds that decide classification on their own: they are indicators to be judged.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Present value of payments","es":""},"value":"1140000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Economic life","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value / fair value","es":""},"answer":95,"tolerance":0.1,"unit":"PERCENT"},{"id":"S2","label":{"fr":"","en":"Term / economic life","es":""},"answer":83.33,"tolerance":0.1,"unit":"PERCENT"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value / fair value","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of payments","es":""},"value":1140000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value","es":""},"value":1200000,"unit":"EUR"}],"result":95,"unit":"PERCENT"},{"step":"S2","meaning":{"fr":"","en":"Term / economic life","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease term","es":""},"value":5,"unit":"YEARS"},{"symbol":"b","meaning":{"fr":"","en":"Economic life","es":""},"value":6,"unit":"YEARS"}],"result":83.33,"unit":"PERCENT"}],"references":["REF.IFRS16.63"]}},{"prompt":{"fr":"","en":"Which features point to a finance lease?","es":""},"explanation":{"fr":"","en":"Two paragraph 63 situations are present (present value and term). The fair-value option and the standard nature of the trucks do not point that way (IFRS 16, para. 63).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The present value of the payments, close to fair value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A term covering most of the economic life","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The purchase option at the end-of-lease fair value","es":""},"correct":false,"feedback":{"fr":"","en":"An option at fair value is not a bargain: its exercise is not reasonably certain at inception (IFRS 16, para. 63).","es":""}},{"id":"D","text":{"fr":"","en":"Standard trucks that can be re-leased without conversion","es":""},"correct":false,"feedback":{"fr":"","en":"This is not a specialised asset: this feature does not support a finance lease (IFRS 16, para. 63).","es":""}}],"id":"P2","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Which conclusion is best justified?","es":""},"explanation":{"fr":"","en":"The criterion is the transfer of substantially all the risks and rewards (IFRS 16, para. 62). The indicators converge and nothing clearly shows the contrary (IFRS 16, para. 65): the purchase option at fair value does leave the residual value risk with Autoloc, but that residual weighs only about 60,000 in present value terms (1,200,000 − 1,140,000), i.e. 5% of fair value. The finance lease conclusion is a judgement, supported by the facts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Finance lease: the facts as a whole show that substantially all the risks and rewards are transferred, and no feature clearly contradicts this","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Finance lease, because 95% exceeds the 90% threshold set by IFRS 16","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 sets no numerical threshold: the conclusion may be the same, but the justification is wrong (IFRS 16, para. 63).","es":""}},{"id":"C","text":{"fr":"","en":"Operating lease, because Autoloc remains the legal owner of the trucks","es":""},"correct":false,"feedback":{"fr":"","en":"Legal ownership does not decide: classification depends on the substance of the transaction (IFRS 16, para. 63).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"During year 3, Autoloc raises its estimate of the trucks' economic life to 8 years. It must reclassify the lease.","es":""},"explanation":{"fr":"","en":"False. A change in the estimate of economic life does not lead to a new classification; only a lease modification does (IFRS 16, para. 66).","es":""},"common_error":{"fr":"","en":"Reclassifying the lease after a new estimate of economic life: only a contract modification allows it.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000113","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"GENERIC","tested_point":"LAND_AND_BUILDING_SEPARATE_CLASSIFICATION","difficulty":"EXPERT","estimated_time_s":420,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"land-and-buildings"},"references":["IFRS 16 §63","IFRS 16 §B55","IFRS 16 §B56","IFRS 16 §B57"],"exercise":{"prompt":{"fr":"","en":"Classify Immobel's property lease, dealing with the land and the building separately.","es":""},"explanation":{"fr":"","en":"Mixed lease: allocate the rent according to the leasehold interests (IFRS 16, para. B56), then classify land and building separately using the usual criteria (IFRS 16, paras. B55, 63).","es":""},"common_error":{"fr":"","en":"Classifying the lease as a whole, or allocating the rent by the value of the properties rather than that of the leasehold interests.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Immobel leases an office building and its land for 30 years, for an annual rent of 200,000. The contract provides for neither transfer of ownership nor a purchase option. An appraiser has measured, at the inception date, the relative fair values of the leasehold interests: 30% for the land, 70% for the building (case data).","es":""},"exhibits":[{"title":{"fr":"","en":"Additional information","es":""},"body":{"fr":"","en":"Economic life of the building: 35 years. Land: no limit on the period of use identified.","es":""}}],"parts":[{"prompt":{"fr":"","en":"On what basis does Immobel allocate the rent between land and building?","es":""},"explanation":{"fr":"","en":"The lessor allocates the lease payments in proportion to the relative fair values of the leasehold interests in each element at the inception date (IFRS 16, para. B56).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The relative fair values of the leasehold interests at the inception date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The relative fair values of the land and the building themselves","es":""},"correct":false,"feedback":{"fr":"","en":"The basis is the value of the leasehold interests in each element, not that of the properties (IFRS 16, para. B56).","es":""}},{"id":"C","text":{"fr":"","en":"The carrying amounts in Immobel's books","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying amounts do not reflect the value of the rights granted (IFRS 16, para. B56).","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the allocation of the annual rent and the building's term indicator.","es":""},"explanation":{"fr":"","en":"200,000 × 30% = 60,000; 200,000 × 70% = 140,000 (IFRS 16, para. B56). Building term indicator: 30 / 35 = 85.71%, an indicator of the 'major part' of the economic life, to be assessed by judgement (IFRS 16, para. 63).","es":""},"common_error":{"fr":"","en":"Analysing land and building together using the building's economic life: each element is assessed separately.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual rent","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Land share","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Lease term","es":""},"value":"30","unit":"YEARS"},{"label":{"fr":"","en":"Building's economic life","es":""},"value":"35","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Rent allocated to the land","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Rent allocated to the building","es":""},"answer":140000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Term / building's economic life","es":""},"answer":85.71,"tolerance":0.1,"unit":"PERCENT"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Rent allocated to the land","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual rent","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Land share","es":""},"value":30,"unit":"PERCENT"}],"result":60000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Term / building's economic life","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease term","es":""},"value":30,"unit":"YEARS"},{"symbol":"b","meaning":{"fr":"","en":"Building's economic life","es":""},"value":35,"unit":"YEARS"}],"result":85.71,"unit":"PERCENT","rationale":{"fr":"","en":"Building term indicator: 30 / 35 = 85.71%, an indicator of the 'major part' of the economic life, to be assessed by judgement (IFRS 16, para. 63).","es":""}}],"references":["REF.IFRS16.63","REF.IFRS16.B56"]}},{"prompt":{"fr":"","en":"Which classification is most likely for the land element?","es":""},"explanation":{"fr":"","en":"The land is classified separately, taking into account its normally indefinite economic life (IFRS 16, para. B55). Without transfer of ownership, the term indicator does not apply: an operating lease is the most likely conclusion — a judgement, to be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Operating lease: without transfer of ownership, 30 years cover only a fraction of an indefinite economic life","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Finance lease, since the whole lease lasts 30 years","es":""},"correct":false,"feedback":{"fr":"","en":"Each element is classified separately, taking into account the land's normally indefinite economic life (IFRS 16, para. B55).","es":""}},{"id":"C","text":{"fr":"","en":"No classification; the land automatically follows the building","es":""},"correct":false,"feedback":{"fr":"","en":"The land element is not immaterial here (30% of the interests): the simplification for immaterial land (IFRS 16, para. B57) does not apply, so it is classified separately (IFRS 16, para. B55).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000114","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"LESSOR_CLASSIFICATION_INDICATORS","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"indicators"},"references":["IFRS 16 §62","IFRS 16 §63","IFRS 16 §64"],"exercise":{"prompt":{"fr":"","en":"A machine-tool lessor examines clauses from six contracts. Classify each clause according to whether or not it is a finance lease situation or indicator.","es":""},"explanation":{"fr":"","en":"Transfer of ownership and a bargain purchase option are among the paragraph 63 situations; bearing the cancellation losses is a paragraph 64 indicator. A lessor keeping the outcome of the residual value, an extension at market rent and a standard asset do not reflect a transfer of risks and rewards (IFRS 16, paras. 62-64).","es":""},"common_error":{"fr":"","en":"Treating any extension option as an indicator: only an extension at a rent substantially below market rent is one.","es":""},"format":"CLASSIFICATION","categories":[{"id":"FINANCE_INDICATOR","text":{"fr":"","en":"Finance lease situation or indicator","es":""}},{"id":"NOT_INDICATOR","text":{"fr":"","en":"Not a finance lease indicator","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The machine becomes the lessee's property with the last payment.","es":""},"category":"FINANCE_INDICATOR"},{"id":"I2","text":{"fr":"","en":"Purchase option at 1,000 on a machine expected to be worth 60,000 at the end of the lease.","es":""},"category":"FINANCE_INDICATOR"},{"id":"I3","text":{"fr":"","en":"If the lessee cancels, it compensates the lessor for all losses associated with the cancellation.","es":""},"category":"FINANCE_INDICATOR"},{"id":"I4","text":{"fr":"","en":"The lessor sells the machine at the end of the lease and alone keeps the gain or loss on resale.","es":""},"category":"NOT_INDICATOR"},{"id":"I5","text":{"fr":"","en":"The lessee may extend for two years at the market rent then prevailing.","es":""},"category":"NOT_INDICATOR"},{"id":"I6","text":{"fr":"","en":"The machine is a standard model that the lessor regularly re-leases to other customers.","es":""},"category":"NOT_INDICATOR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000115","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","format":"CLASSIFICATION","context":"AVIATION","tested_point":"LESSOR_CLASSIFICATION_REASSESSMENT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"timing"},"references":["IFRS 16 §66"],"exercise":{"prompt":{"fr":"","en":"An aircraft lessor classified its leases at the inception date. For each later event, state whether it leads to reassessing the classification.","es":""},"explanation":{"fr":"","en":"Classification is reassessed only if the lease is modified (the two amendments). Changes in estimates (economic life, residual value) and in circumstances (default by the lessee) do not lead to a new classification (IFRS 16, para. 66).","es":""},"common_error":{"fr":"","en":"Thinking that the lessee's default or a fall in residual value 'changes the nature' of the lease and requires reclassification.","es":""},"format":"CLASSIFICATION","categories":[{"id":"REASSESS","text":{"fr":"","en":"Classification reassessed","es":""}},{"id":"NO_REASSESSMENT","text":{"fr":"","en":"No new classification","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"The parties sign an amendment that halves the lease term.","es":""},"category":"REASSESS"},{"id":"I2","text":{"fr":"","en":"The lessor raises its estimate of the aircraft's economic life from 25 to 30 years.","es":""},"category":"NO_REASSESSMENT"},{"id":"I3","text":{"fr":"","en":"The aircraft's estimated residual value falls after a more fuel-efficient model is launched.","es":""},"category":"NO_REASSESSMENT"},{"id":"I4","text":{"fr":"","en":"The airline lessee stops paying its lease payments.","es":""},"category":"NO_REASSESSMENT"},{"id":"I5","text":{"fr":"","en":"An amendment adds a purchase option at a token price at the end of the lease.","es":""},"category":"REASSESS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000116","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"LESSOR_CLASSIFICATION_RATIOS_AS_INDICATORS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"numeric-example"},"references":["IFRS 16 §62","IFRS 16 §63"],"exercise":{"prompt":{"fr":"","en":"An infrastructure fund leases a wind turbine to an electricity producer. Calculate the two indicators useful for classification, at the inception date (case data).","es":""},"explanation":{"fr":"","en":"1,760,000 / 2,000,000 = 88%; 20 / 25 = 80%. These ratios shed light on two paragraph 63 situations ('substantially all of the fair value', 'major part of the economic life'), but IFRS 16 sets no threshold: the conclusion requires judgement on all the facts, against the transfer of substantially all the risks and rewards (IFRS 16, paras. 62-63).","es":""},"common_error":{"fr":"","en":"Automatically concluding 'operating lease' because 88% is below 90%, or 'finance lease' because 80% exceeds 75%: these thresholds are not IFRS 16 rules.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value of the turbine","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Present value of payments at the implicit rate","es":""},"value":"1760000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"20","unit":"YEARS"},{"label":{"fr":"","en":"Economic life","es":""},"value":"25","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value / fair value","es":""},"answer":88,"tolerance":0.1,"unit":"PERCENT"},{"id":"S2","label":{"fr":"","en":"Term / economic life","es":""},"answer":80,"tolerance":0.1,"unit":"PERCENT"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value / fair value","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of payments at the implicit rate","es":""},"value":1760000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the turbine","es":""},"value":2000000,"unit":"EUR"}],"result":88,"unit":"PERCENT"},{"step":"S2","meaning":{"fr":"","en":"Term / economic life","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease term","es":""},"value":20,"unit":"YEARS"},{"symbol":"b","meaning":{"fr":"","en":"Economic life","es":""},"value":25,"unit":"YEARS"}],"result":80,"unit":"PERCENT"}],"references":["REF.IFRS16.62","REF.IFRS16.63"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000117","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"SUBLEASE_CLASSIFICATION_REFERENCE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"subleases"},"references":["IFRS 16 §B58"],"exercise":{"prompt":{"fr":"","en":"A telecom operator leases a data centre room for 10 years (not a short-term lease). After one year, it subleases all of it to a hosting company for 8 of the remaining 9 years. Which comparison guides the classification of the sublease?","es":""},"explanation":{"fr":"","en":"The intermediate lessor classifies the sublease by reference to the right-of-use asset arising from the head lease (IFRS 16, para. B58). Here, 8 years out of the remaining 9: a strong indicator of a finance lease, a judgement conclusion to be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"8 years compared with the remaining 9 years of the right-of-use asset arising from the head lease","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"8 years compared with the building's 40-year economic life","es":""},"correct":false,"feedback":{"fr":"","en":"The sublease is not analysed by reference to the underlying asset (IFRS 16, para. B58).","es":""}},{"id":"C","text":{"fr":"","en":"None: a sublease is always an operating lease","es":""},"correct":false,"feedback":{"fr":"","en":"Automatic operating lease classification applies only where the head lease is a short-term lease accounted for under the exemption (IFRS 16, para. B58).","es":""}},{"id":"D","text":{"fr":"","en":"8 years compared with the original 10-year term of the head lease","es":""},"correct":false,"feedback":{"fr":"","en":"What is transferred is the right of use as it stands when the sublease is entered into; the reference is that right, not the original term (IFRS 16, para. B58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000118","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"HEALTHCARE","tested_point":"LESSOR_CLASSIFICATION_SITUATIONS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"indicators"},"references":["IFRS 16 §63"],"exercise":{"prompt":{"fr":"","en":"Case data: a medical equipment lessor leases a standard scanner to a clinic for 9 years; the scanner's economic life is 10 years. At inception, the present value of the lease payments is 96% of the scanner's fair value. The contract does not transfer ownership and contains no purchase option. The lessor judges that 9 years covers the major part of the economic life and that 96% amounts to substantially all of the fair value (professional judgement, case data). Which statements are correct?","es":""},"explanation":{"fr":"","en":"Classification depends on the substance of the transaction. A term covering the major part of the economic life and a present value of payments amounting to at least substantially all of the fair value are among the situations that individually or in combination would normally lead to a finance lease (IFRS 16, para. 63). The standard sets no numerical thresholds: the \"major part\" and \"substantially all\" assessments are here a matter of the lessor's judgement (case data).","es":""},"common_error":{"fr":"","en":"Requiring a transfer of ownership or a specialised asset before concluding that a lease is a finance lease.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 9-year term out of 10 points towards a finance lease","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The present value of lease payments equal to 96% of fair value points towards a finance lease","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The absence of transfer of ownership, on its own, prevents the contract from being classified as a finance lease","es":""},"correct":false,"feedback":{"fr":"","en":"Transfer of ownership is only one of the possible situations; a term covering the major part of the economic life is enough to point towards the classification, even without transfer of title (IFRS 16, para. 63).","es":""}},{"id":"D","text":{"fr":"","en":"As the scanner is standard rather than specialised, the contract is necessarily an operating lease","es":""},"correct":false,"feedback":{"fr":"","en":"The paragraph 63 situations operate individually or in combination: the absence of one of them does not rule out the others (IFRS 16, para. 63).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000119","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"REAL_ESTATE","tested_point":"LESSOR_CLASSIFICATION_COMMON_ERRORS","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"pitfalls"},"references":["IFRS 16 §63","IFRS 16 §66","IFRS 16 §B55","IFRS 16 §65"],"exercise":{"prompt":{"fr":"","en":"Here is the classification memo drafted by an assistant for a property lessor. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Substance over form and no numerical threshold (IFRS 16, para. 63); classification at inception, revisited only on a modification (IFRS 16, para. 66); land and building classified separately (IFRS 16, para. B55).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The contract is called a 'long-term rental': it is therefore an operating lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"The title does not decide: classification depends on the substance of the transaction (IFRS 16, para. 63).","es":""}},{"id":"S2","text":{"fr":"","en":"The present value of the payments is 92% of fair value: it exceeds the IFRS 16 threshold of 90%, so the lease is automatically a finance lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"IFRS 16 sets no threshold: 92% is an indicator of 'substantially all' to be assessed with the other facts (IFRS 16, paras. 63, 65).","es":""}},{"id":"S3","text":{"fr":"","en":"Classification is made at the inception date of the lease.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"We will reassess the classification at each reporting date, using the updated residual value.","es":""},"erroneous":true,"correction":{"fr":"","en":"Classification is reassessed only if the lease is modified; a change in the residual value estimate is not enough (IFRS 16, para. 66).","es":""}},{"id":"S5","text":{"fr":"","en":"As the lease covers land and a building, each element is classified separately.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000120","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"SUBLEASE_SHORT_TERM_HEAD_LEASE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"subleases"},"references":["IFRS 16 §B58","IFRS 16 §6"],"exercise":{"prompt":{"fr":"","en":"A retailer leases a unit for 9 months and applies the short-term lease exemption. It subleases the unit to a partner brand for 6 months. This sublease is an operating lease.","es":""},"explanation":{"fr":"","en":"True. When the head lease is a short-term lease accounted for under the paragraph 6 exemption, the intermediate lessor classifies the sublease as an operating lease (IFRS 16, para. B58).","es":""},"common_error":{"fr":"","en":"Comparing 6 months with 9 months and concluding a finance lease: the analysis by reference to the right-of-use asset does not apply when the head lease is exempted.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000121","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RECOGNITION","format":"MATCHING","context":"AGRICULTURE","tested_point":"LESSOR_CLASSIFICATION_INDICATORS","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"indicators"},"references":["IFRS 16 §63","IFRS 16 §64"],"exercise":{"prompt":{"fr":"","en":"An agricultural equipment lessor is rereading its contracts. Match each clause with the finance lease situation or indicator it illustrates.","es":""},"explanation":{"fr":"","en":"A bargain option, a term covering the major part of the economic life and a specialised asset are paragraph 63 situations; fair value changes in the residual accruing to the lessee and an extension at a rent substantially below market are paragraph 64 indicators. Indexation is not one (IFRS 16, paras. 63-64).","es":""},"common_error":{"fr":"","en":"Confusing the para. 63 situations, which often suffice, with the para. 64 indicators, which supplement the analysis.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Option to buy the harvester for 500, when it will be worth about 80,000","es":""}},{"id":"L2","text":{"fr":"","en":"9-year lease of a tractor whose economic life is 10 years","es":""}},{"id":"L3","text":{"fr":"","en":"Greenhouse custom-designed for a crop patented by the lessee alone","es":""}},{"id":"L4","text":{"fr":"","en":"At the end of the lease, the farmer receives the gain or bears the loss on the resale of the sprayer","es":""}},{"id":"L5","text":{"fr":"","en":"Renewal possible for 3 years at a rent equal to one tenth of market rent","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Bargain purchase option","es":""}},{"id":"R2","text":{"fr":"","en":"Major part of the economic life","es":""}},{"id":"R3","text":{"fr":"","en":"Specialised asset","es":""}},{"id":"R4","text":{"fr":"","en":"Fair value changes in the residual accrue to the lessee","es":""}},{"id":"R5","text":{"fr":"","en":"Extension at a rent substantially below market","es":""}},{"id":"R6","text":{"fr":"","en":"Indexation of lease payments","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000122","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"NET_INVESTMENT_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":300,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §67","IFRS 16 §68","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"Camionor, a finance company (neither a manufacturer nor a dealer), leases out a road tractor under a finance lease. Calculate the net investment and its components at the commencement date, without intermediate rounding (case data; the implicit rate already includes the initial direct costs).","es":""},"explanation":{"fr":"","en":"Lease payments: 50,000 × (1/1.06 + 1/1.06² + 1/1.06³) = 133,650.60. Unguaranteed residual value: 10,000 / 1.06³ = 8,396.19. Net investment = 142,046.79, the amount of the receivable (IFRS 16, paras. 67-68). Gross investment = 3 × 50,000 + 10,000 = 160,000; unearned finance income = 160,000 − 142,046.79 = 17,953.21 (IFRS 16, Appendix A).","es":""},"common_error":{"fr":"","en":"Forgetting the unguaranteed residual value, or recognising the receivable at the gross investment of 160,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual lease payments made at year-end","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Unguaranteed residual value at the end of the lease","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Implicit rate","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value of the lease payments","es":""},"answer":133650.6,"tolerance":0.1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of the unguaranteed residual value","es":""},"answer":8396.19,"tolerance":0.1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Net investment","es":""},"answer":142046.79,"tolerance":0.1,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Gross investment","es":""},"answer":160000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Unearned finance income","es":""},"answer":17953.21,"tolerance":0.1,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value of the lease payments","es":""},"expression":"a * (1 / (1 + b) + 1 / (1 + b)^2 + 1 / (1 + b)^3)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease payments made at year-end","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Implicit rate","es":""},"value":6,"unit":"PERCENT"}],"result":133650.6,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Present value of the unguaranteed residual value","es":""},"expression":"a / (1 + b)^3","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unguaranteed residual value at the end of the lease","es":""},"value":10000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Implicit rate","es":""},"value":6,"unit":"PERCENT"}],"result":8396.19,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Gross investment","es":""},"expression":"a * b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease term","es":""},"value":3,"unit":"YEARS"},{"symbol":"b","meaning":{"fr":"","en":"Annual lease payments made at year-end","es":""},"value":50000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Unguaranteed residual value at the end of the lease","es":""},"value":10000,"unit":"EUR"}],"result":160000,"unit":"EUR"},{"step":"S5","meaning":{"fr":"","en":"Unearned finance income","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross investment","es":""},"value":160000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net investment","es":""},"value":142046.79,"unit":"EUR"}],"result":17953.21,"unit":"EUR"}],"references":["REF.IFRS16.67","REF.IFRS16.68"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000123","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"FINANCE_INCOME_CONSTANT_RATE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"finance-income"},"references":["IFRS 16 §75","IFRS 16 §76"],"exercise":{"prompt":{"fr":"","en":"A lessor has leased out a cogeneration plant under a finance lease. Calculate the finance income and the receivable balance for the first two years (case data).","es":""},"explanation":{"fr":"","en":"Year 1: 500,000 × 8% = 40,000; 500,000 + 40,000 − 120,000 = 420,000. Year 2: 420,000 × 8% = 33,600; 420,000 + 33,600 − 120,000 = 333,600. Income follows a constant rate of return on the net investment (IFRS 16, para. 75) and payments reduce both principal and unearned income (IFRS 16, para. 76).","es":""},"common_error":{"fr":"","en":"Calculating year 2 income on the initial net investment (40,000 instead of 33,600).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Net investment at the commencement date","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Implicit rate","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Annual payment received at year-end","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Finance income for year 1","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Receivable at the end of year 1","es":""},"answer":420000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Finance income for year 2","es":""},"answer":33600,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Receivable at the end of year 2","es":""},"answer":333600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Finance income for year 1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net investment at the commencement date","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Implicit rate","es":""},"value":8,"unit":"PERCENT"}],"result":40000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Receivable at the end of year 1","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net investment at the commencement date","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Finance income for year 1","es":""},"value":40000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual payment received at year-end","es":""},"value":120000,"unit":"EUR"}],"result":420000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Finance income for year 2","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Receivable at the end of year 1","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Implicit rate","es":""},"value":8,"unit":"PERCENT"}],"result":33600,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Receivable at the end of year 2","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Receivable at the end of year 1","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Finance income for year 2","es":""},"value":33600,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual payment received at year-end","es":""},"value":120000,"unit":"EUR"}],"result":333600,"unit":"EUR"}],"references":["REF.IFRS16.75","REF.IFRS16.76"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000124","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"MANUFACTURER_DEALER_SELLING_PROFIT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"manufacturer-dealer"},"references":["IFRS 16 §71","IFRS 16 §73","IFRS 16 §74"],"exercise":{"prompt":{"fr":"","en":"Agrimek manufactures tractors. To support sales, it offers a finance lease at a promotional rate of 1.9%, whereas the market rate for these customers is 7% (case data). Calculate the amounts recognised at the commencement date.","es":""},"explanation":{"fr":"","en":"As the promotional rate is artificially low, the profit is restricted to what the market rate would produce (IFRS 16, para. 73): the present values at 7% are used. Revenue = lower of 150,000 and 140,000 = 140,000; cost of sales = 110,000 − 8,000 = 102,000; profit = 38,000 (IFRS 16, para. 71). The commission is expensed at the commencement date (IFRS 16, para. 74): net effect 38,000 − 2,000 = 36,000.","es":""},"common_error":{"fr":"","en":"Using the fair value of 150,000 as revenue, or deducting the undiscounted residual value from cost of sales.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value (cash selling price)","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the lease payments at the market rate","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the unguaranteed residual value at the market rate","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Production cost of the tractor","es":""},"value":"110000","unit":"EUR"},{"label":{"fr":"","en":"Commission paid to the salesperson","es":""},"value":"2000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Revenue","es":""},"answer":140000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Cost of sales","es":""},"answer":102000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Selling profit","es":""},"answer":38000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Net effect on profit at the commencement date","es":""},"answer":36000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Cost of sales","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Production cost of the tractor","es":""},"value":110000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Present value of the unguaranteed residual value at the market rate","es":""},"value":8000,"unit":"EUR"}],"result":102000,"unit":"EUR"},{"step":"S4","meaning":{"fr":"","en":"Net effect on profit at the commencement date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Selling profit","es":""},"value":38000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Commission paid to the salesperson","es":""},"value":2000,"unit":"EUR"}],"result":36000,"unit":"EUR","rationale":{"fr":"","en":"The commission is expensed at the commencement date (IFRS 16, para. 74): net effect 38,000 − 2,000 = 36,000.","es":""}}],"references":["REF.IFRS16.71","REF.IFRS16.73","REF.IFRS16.74"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000125","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"FINANCE_LEASE_INITIAL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"entry"},"references":["IFRS 16 §67","IFRS 16 §69"],"exercise":{"prompt":{"fr":"","en":"Finaloc, a non-manufacturer lessor, acquires a packaging line for 200,000 (its fair value) and delivers it directly to a logistics company under a finance lease. It pays 3,000 of legal fees and commission specific to the lease in cash. Net investment at the commencement date: 203,000 (case data, consistent with the implicit rate). Teaching assumption: the purchase of the line was recorded in the 'Equipment held for leasing' account. Record the commencement date entry; the equipment line is given.","es":""},"explanation":{"fr":"","en":"The receivable is recognised at the net investment (IFRS 16, para. 67). A non-manufacturer lessor's initial direct costs are included in the initial measurement of the net investment, not expensed (IFRS 16, para. 69): debit Receivable 203,000; credit Equipment 200,000 and Cash 3,000.","es":""},"common_error":{"fr":"","en":"Expensing the 3,000: that treatment applies to the costs of obtaining the lease of a manufacturer or dealer lessor, not to Finaloc's.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"FINANCE_LEASE_RECEIVABLE","text":{"fr":"","en":"Finance lease receivable","es":""}},{"id":"EQUIPMENT_HELD_FOR_LEASING","text":{"fr":"","en":"Equipment held for leasing","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"FEES_EXPENSE","text":{"fr":"","en":"Fees and commissions expense","es":""}},{"id":"FINANCE_INCOME","text":{"fr":"","en":"Finance income","es":""}}],"lines":[{"id":"L1","account":"FINANCE_LEASE_RECEIVABLE","side":"DEBIT","amount":203000},{"id":"L2","account":"EQUIPMENT_HELD_FOR_LEASING","side":"CREDIT","amount":200000,"given":["account","side","amount"]},{"id":"L3","account":"CASH","side":"CREDIT","amount":3000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000126","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AGRICULTURE","tested_point":"MANUFACTURER_DEALER_ENTRY","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"entry"},"references":["IFRS 16 §67","IFRS 16 §71","IFRS 16 §74"],"exercise":{"prompt":{"fr":"","en":"Return to Agrimek: revenue 140,000; production cost of the tractor 110,000 (in inventory); present value of the unguaranteed residual value 8,000; net investment used 148,000 (case data: lease payments and unguaranteed residual value discounted at the market rate); commission of 2,000 paid in cash. Record the full commencement date entry.","es":""},"explanation":{"fr":"","en":"The manufacturer recognises revenue of 140,000 and cost of sales of 110,000 − 8,000 = 102,000 (IFRS 16, para. 71); the receivable is the net investment of 148,000 (IFRS 16, para. 67); the commission is expensed at the commencement date (IFRS 16, para. 74). Debits 148,000 + 102,000 + 2,000 = 252,000; credits 140,000 + 110,000 + 2,000 = 252,000.","es":""},"common_error":{"fr":"","en":"Crediting property, plant and equipment: the tractor, a product manufactured for sale, leaves inventory.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"FINANCE_LEASE_RECEIVABLE","text":{"fr":"","en":"Finance lease receivable","es":""}},{"id":"COST_OF_SALES","text":{"fr":"","en":"Cost of sales","es":""}},{"id":"SELLING_EXPENSES","text":{"fr":"","en":"Selling expenses","es":""}},{"id":"REVENUE","text":{"fr":"","en":"Revenue","es":""}},{"id":"INVENTORY","text":{"fr":"","en":"Finished goods inventory","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"PROPERTY_PLANT_EQUIPMENT","text":{"fr":"","en":"Property, plant and equipment","es":""}}],"lines":[{"id":"L1","account":"FINANCE_LEASE_RECEIVABLE","side":"DEBIT","amount":148000},{"id":"L2","account":"COST_OF_SALES","side":"DEBIT","amount":102000},{"id":"L3","account":"SELLING_EXPENSES","side":"DEBIT","amount":2000},{"id":"L4","account":"REVENUE","side":"CREDIT","amount":140000},{"id":"L5","account":"INVENTORY","side":"CREDIT","amount":110000},{"id":"L6","account":"CASH","side":"CREDIT","amount":2000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000127","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL","IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"FINANCE_LEASE_LESSOR_COMMON_ERRORS","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"pitfalls"},"references":["IFRS 16 §67","IFRS 16 §69","IFRS 16 §75","IFRS 16 §77","IFRS 16 §68"],"exercise":{"prompt":{"fr":"","en":"An auditor reviews the year-end file of a lessor (neither a manufacturer nor a dealer) for its finance leases. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Receivable = discounted net investment (IFRS 16, paras. 67-68), including initial direct costs for a non-manufacturer lessor (IFRS 16, para. 69); income at a constant rate (IFRS 16, para. 75); IFRS 9 and review of the unguaranteed residual value (IFRS 16, para. 77).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The receivable is recognised at the undiscounted total of the lease payments and the unguaranteed residual value.","es":""},"erroneous":true,"correction":{"fr":"","en":"That total is the gross investment; the receivable equals the net investment, discounted at the implicit rate (IFRS 16, paras. 67-68).","es":""}},{"id":"S2","text":{"fr":"","en":"Commissions paid to introducers to obtain the leases are included in the net investment.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Finance income is allocated in equal amounts over the term of each lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"Income follows a constant periodic rate of return on the net investment: it declines with the outstanding principal (IFRS 16, para. 75).","es":""}},{"id":"S4","text":{"fr":"","en":"As the unguaranteed residual value of one lease has fallen, the income allocation was revised and the reduction relating to amounts already accrued was recognised immediately.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"Receivables from lessees in difficulty were impaired under IAS 36.","es":""},"erroneous":true,"correction":{"fr":"","en":"Impairment of the net investment falls under IFRS 9 (IFRS 16, para. 77).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000128","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"HEALTHCARE","tested_point":"NET_INVESTMENT_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §69","IFRS 16 §70","IFRS 16 §74","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"A hospital equipment lessor, which is neither a manufacturer nor a dealer, is preparing the measurement of a finance lease. Classify each item according to whether or not it is included in the net investment at the commencement date.","es":""},"explanation":{"fr":"","en":"The payments included are those not received at the commencement date: fixed (net of lease incentives payable), indexed using the index at the commencement date, residual value guarantees… (IFRS 16, para. 70); the unguaranteed residual value is added (IFRS 16, Appendix A). A non-manufacturer lessor's initial direct costs are included (IFRS 16, para. 69), but a manufacturer's costs of obtaining the lease are expensed (IFRS 16, para. 74).","es":""},"common_error":{"fr":"","en":"Excluding the unguaranteed residual value because nobody guarantees it: it is part of the net investment.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INCLUDED","text":{"fr":"","en":"Included in the net investment","es":""}},{"id":"EXCLUDED","text":{"fr":"","en":"Excluded from the net investment","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Fixed lease payments receivable, less a lease incentive payable to the lessee","es":""},"category":"INCLUDED"},{"id":"I2","text":{"fr":"","en":"Lease payments indexed to a price index, measured using the index at the commencement date","es":""},"category":"INCLUDED"},{"id":"I3","text":{"fr":"","en":"Residual value guarantee provided by the lessee","es":""},"category":"INCLUDED"},{"id":"I4","text":{"fr":"","en":"Unguaranteed residual value accruing to the lessor, discounted","es":""},"category":"INCLUDED"},{"id":"I5","text":{"fr":"","en":"Broker's commission paid to conclude the lease","es":""},"category":"INCLUDED"},{"id":"I6","text":{"fr":"","en":"First lease payment already received before the commencement date","es":""},"category":"EXCLUDED"},{"id":"I7","text":{"fr":"","en":"Commission that a manufacturer lessor would pay its own salesperson for a similar lease","es":""},"category":"EXCLUDED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000129","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL","IFRS16.LESSOR_FINANCE.SUBSEQUENT","IFRS16.LESSOR_PRESENTATION.STATEMENTS"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"TELECOM","tested_point":"FINANCE_LEASE_LESSOR_FULL_CYCLE","difficulty":"ADVANCED","estimated_time_s":480,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"numeric-example"},"references":["IFRS 16 §66","IFRS 16 §67","IFRS 16 §68","IFRS 16 §75","IFRS 16 §77"],"exercise":{"prompt":{"fr":"","en":"Follow Netbail's finance lease from the commencement date to the first reporting date.","es":""},"explanation":{"fr":"","en":"Full cycle: receivable at the net investment (IFRS 16, paras. 67-68), income at a constant rate (IFRS 16, para. 75), review of the unguaranteed residual value and IFRS 9 (IFRS 16, para. 77).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Netbail, a finance company, leases network equipment to a telecom operator under a 3-year finance lease. Lease payments of 100,000 paid at the end of each year; unguaranteed residual value accruing to Netbail at the end of the lease: 30,000; implicit rate: 5% (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the net investment at the commencement date (without intermediate rounding).","es":""},"explanation":{"fr":"","en":"100,000 × (1/1.05 + 1/1.05² + 1/1.05³) = 272,324.80; 30,000 / 1.05³ = 25,915.13; net investment = 298,239.93, the amount of the receivable (IFRS 16, paras. 67-68).","es":""},"common_error":{"fr":"","en":"Forgetting the discounted unguaranteed residual value: it is part of the net investment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual lease payment","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Unguaranteed residual value","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Implicit rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value of the lease payments","es":""},"answer":272324.8,"tolerance":0.1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of the unguaranteed residual value","es":""},"answer":25915.13,"tolerance":0.1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Net investment","es":""},"answer":298239.93,"tolerance":0.1,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value of the lease payments","es":""},"expression":"a * (1 / (1 + b) + 1 / (1 + b)^2 + 1 / (1 + b)^3)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease payment","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Implicit rate","es":""},"value":5,"unit":"PERCENT"}],"result":272324.8,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Present value of the unguaranteed residual value","es":""},"expression":"a / (1 + b)^3","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unguaranteed residual value","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Implicit rate","es":""},"value":5,"unit":"PERCENT"}],"result":25915.13,"unit":"EUR"}],"references":["REF.IFRS16.67","REF.IFRS16.68"]}},{"prompt":{"fr":"","en":"Calculate the finance income for year 1 and the receivable balance at the end of year 1.","es":""},"explanation":{"fr":"","en":"298,239.93 × 5% = 14,912.00; 298,239.93 + 14,912.00 − 100,000 = 213,151.93 (IFRS 16, para. 75).","es":""},"common_error":{"fr":"","en":"Computing finance income on the receivable after the rent is collected: it applies to the opening net investment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening net investment","es":""},"value":"298239.93","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Finance income for year 1","es":""},"answer":14912,"tolerance":0.01,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Receivable at the end of year 1","es":""},"answer":213151.93,"tolerance":0.01,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Receivable at the end of year 1","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening net investment","es":""},"value":298239.93,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Finance income for year 1","es":""},"value":14912,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Lease payments of 100,000 paid at the end of each year","es":""},"value":100000}],"result":213151.93,"unit":"EUR"}],"references":["REF.IFRS16.75"]}},{"prompt":{"fr":"","en":"At the end of year 1, the arrival of a new generation of equipment reduces the estimate of the unguaranteed residual value to 12,000. What does Netbail do?","es":""},"explanation":{"fr":"","en":"The lessor regularly reviews unguaranteed residual values; if they fall, it revises the income allocation and immediately recognises the reduction relating to amounts already accrued (IFRS 16, para. 77). Paragraph 77 does not set out a calculation method: the one Netbail uses is a choice to be documented and applied consistently.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It revises the income allocation over the remaining term and immediately recognises the reduction relating to amounts already accrued","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It waits until the end of the lease to recognise the difference on resale","es":""},"correct":false,"feedback":{"fr":"","en":"The fall is dealt with as soon as it is identified, during the regular review of residual values (IFRS 16, para. 77).","es":""}},{"id":"C","text":{"fr":"","en":"It reclassifies the lease as an operating lease","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the residual value estimate does not lead to a new classification (IFRS 16, para. 66).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Netbail measures expected credit losses on its receivable under IFRS 9.","es":""},"explanation":{"fr":"","en":"True. The lessor applies the impairment and derecognition requirements of IFRS 9 to the net investment (IFRS 16, para. 77).","es":""},"common_error":{"fr":"","en":"Applying IAS 36 to the leased asset: the lessor holds a receivable subject to IFRS 9 impairment.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000130","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"MANUFACTURER_ARTIFICIALLY_LOW_RATE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"manufacturer-dealer"},"references":["IFRS 16 §71","IFRS 16 §73","IFRS 16 §86"],"exercise":{"prompt":{"fr":"","en":"A car manufacturer offers a '0%' finance lease on a light commercial vehicle, whereas the market rate for this customer is 6%. How does it determine the selling profit at the commencement date?","es":""},"explanation":{"fr":"","en":"When a manufacturer or dealer quotes an artificially low rate, the selling profit recognised at the commencement date is restricted to what a market rate would have produced (IFRS 16, para. 73).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It restricts it to the profit that would have resulted from applying a market rate","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It calculates it using the contractual rate of 0%","es":""},"correct":false,"feedback":{"fr":"","en":"An artificially low rate would inflate the immediate profit; IFRS 16 restricts it to the result of a market rate (IFRS 16, para. 73).","es":""}},{"id":"C","text":{"fr":"","en":"It recognises no profit, as no sale has taken place","es":""},"correct":false,"feedback":{"fr":"","en":"No profit applies to operating leases (IFRS 16, para. 86); in a finance lease, the profit is recognised at the commencement date (IFRS 16, para. 71).","es":""}},{"id":"D","text":{"fr":"","en":"It always uses the vehicle's fair value as revenue","es":""},"correct":false,"feedback":{"fr":"","en":"Revenue is the lower of fair value and the present value of the payments at a market rate (IFRS 16, para. 71).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000131","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"FINANCE_LEASE_ASSET_HELD_FOR_SALE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS16.000014","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"ifrs9-residual"},"references":["IFRS 16 §78"],"exercise":{"prompt":{"fr":"","en":"A lessor classifies an asset under a finance lease as held for sale. It continues to account for it solely under the IFRS 16 finance lease requirements.","es":""},"explanation":{"fr":"","en":"False. A lessor that classifies an asset under a finance lease as held for sale, or includes it in a disposal group so classified, accounts for it under IFRS 5 (IFRS 16, para. 78).","es":""},"common_error":{"fr":"","en":"Believing that IFRS 16 covers the whole life of the receivable, whatever the lessor's disposal plans.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000132","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"OPERATING_LEASE_STRAIGHT_LINE_RENT_FREE","difficulty":"BEGINNER","estimated_time_s":150,"lesson_id":"LS.IFRS16.000015","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §81"],"exercise":{"prompt":{"fr":"","en":"A property company leases a shop under a 4-year operating lease. The first 3 months are rent-free, then the rent is 3,000 per month. Method used: straight-line (no other basis is more representative). Calculate the year 1 amounts.","es":""},"explanation":{"fr":"","en":"45 paying months × 3,000 = 135,000, spread on a straight-line basis over 4 years: 33,750 per year (IFRS 16, para. 81). Year 1: 9 months collected = 27,000; accrued lease income = 33,750 − 27,000 = 6,750.","es":""},"common_error":{"fr":"","en":"Recognising only the rent collected (27,000) as income, as if the rent-free period were a free service.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Lease term","es":""},"value":"48","unit":"MONTHS"},{"label":{"fr":"","en":"Rent-free months at the start","es":""},"value":"3","unit":"MONTHS"},{"label":{"fr":"","en":"Monthly rent thereafter","es":""},"value":"3000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total lease payments under the contract","es":""},"answer":135000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual lease income","es":""},"answer":33750,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Rent collected in year 1","es":""},"answer":27000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Accrued lease income at the end of year 1","es":""},"answer":6750,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S4","meaning":{"fr":"","en":"Accrued lease income at the end of year 1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease income","es":""},"value":33750,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rent collected in year 1","es":""},"value":27000,"unit":"EUR"}],"result":6750,"unit":"EUR"}],"rationale":{"fr":"","en":"45 paying months × 3,000 = 135,000, spread on a straight-line basis over 4 years: 33,750 per year (IFRS 16, para. 81).","es":""},"references":["REF.IFRS16.81"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000133","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"OPERATING_LEASE_INITIAL_DIRECT_COSTS","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000015","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"costs-and-depreciation"},"references":["IFRS 16 §81","IFRS 16 §82","IFRS 16 §83","IFRS 16 §84"],"exercise":{"prompt":{"fr":"","en":"A lessor leases a fuel storage tank under a 3-year operating lease, at a constant rent of 120,000 per year. It paid a 6,000 commission to conclude the lease. The tank, with a carrying amount of 900,000, is depreciated on a straight-line basis over its remaining useful life of 15 years, like the lessor's similar tanks (case data). Calculate the year 1 amounts.","es":""},"explanation":{"fr":"","en":"The 6,000 is added to the carrying amount of the asset and expensed over the lease term on the same basis as the income: 6,000 / 3 = 2,000 per year (IFRS 16, para. 83). Depreciation under the policy for similar assets: 900,000 / 15 = 60,000 (IFRS 16, para. 84). Profit: 120,000 − 60,000 − 2,000 = 58,000 (IFRS 16, paras. 81-82).","es":""},"common_error":{"fr":"","en":"Spreading the 6,000 over the tank's 15-year useful life (400 per year) instead of the 3-year lease term.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual rent","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the tank","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Remaining useful life","es":""},"value":"15","unit":"YEARS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Annual expense for initial direct costs","es":""},"answer":2000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual depreciation of the tank","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Year 1 profit from the lease","es":""},"answer":58000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Annual expense for initial direct costs","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":6000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease term","es":""},"value":3,"unit":"YEARS"}],"result":2000,"unit":"EUR","rationale":{"fr":"","en":"The 6,000 is added to the carrying amount of the asset and expensed over the lease term on the same basis as the income: 6,000 / 3 = 2,000 per year (IFRS 16, para. 83).","es":""}},{"step":"S2","meaning":{"fr":"","en":"Annual depreciation of the tank","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the tank","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining useful life","es":""},"value":15,"unit":"YEARS"}],"result":60000,"unit":"EUR","rationale":{"fr":"","en":"Depreciation under the policy for similar assets: 900,000 / 15 = 60,000 (IFRS 16, para. 84).","es":""}},{"step":"S3","meaning":{"fr":"","en":"Year 1 profit from the lease","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual rent","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual depreciation of the tank","es":""},"value":60000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual expense for initial direct costs","es":""},"value":2000,"unit":"EUR"}],"result":58000,"unit":"EUR"}],"references":["REF.IFRS16.81","REF.IFRS16.82","REF.IFRS16.83","REF.IFRS16.84"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000134","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.MODIFICATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"OPERATING_LEASE_MODIFICATION_INCOME","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000015","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"operating-modification"},"references":["IFRS 16 §81","IFRS 16 §87"],"exercise":{"prompt":{"fr":"","en":"A lessor entered into a 4-year operating lease with decreasing rents: 30,000 per year in years 1 and 2, then 20,000 per year in years 3 and 4, paid at year-end. At the start of year 3, the parties replace the two remaining years with 3 years at 22,000 per year. Method used for the exercise (teaching assumption, consistent with the lesson): the lease payments received in advance under the original lease are added to the payments of the new lease. Calculate.","es":""},"explanation":{"fr":"","en":"Original lease: (2 × 30,000 + 2 × 20,000) / 4 = 25,000 per year (IFRS 16, para. 81); after 2 years, 60,000 collected for 50,000 of income, i.e. 10,000 received in advance. The modification creates a new lease; the prepaid lease payments of the original lease are included in its payments (IFRS 16, para. 87). Method of the exercise: 3 × 22,000 + 10,000 = 76,000, i.e. 25,333.33 per year. Check: 50,000 + 76,000 = 126,000 = 60,000 + 66,000 collected.","es":""},"common_error":{"fr":"","en":"Spreading only the 66,000 of the new lease (22,000 per year) and forgetting the payments received in advance, which would then never be recognised as income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Rent in years 1 and 2","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Rent originally agreed for years 3 and 4","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"New annual rent (3 years)","es":""},"value":"22000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Annual straight-line income under the original lease","es":""},"answer":25000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Lease payments received in advance at the end of year 2","es":""},"answer":10000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total to be spread over the new lease","es":""},"answer":76000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Annual income under the new lease","es":""},"answer":25333.33,"tolerance":0.01,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Annual straight-line income under the original lease","es":""},"expression":"(2 * a + 2 * b) / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Rent in years 1 and 2","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rent originally agreed for years 3 and 4","es":""},"value":20000,"unit":"EUR"}],"result":25000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Total to be spread over the new lease","es":""},"expression":"3 * a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"New annual rent (3 years)","es":""},"value":22000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease payments received in advance at the end of year 2","es":""},"value":10000,"unit":"EUR"}],"result":76000,"unit":"EUR"}],"references":["REF.IFRS16.81","REF.IFRS16.87"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000135","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"OPERATING_LEASE_STEPPED_RENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS16.000015","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"entry"},"references":["IFRS 16 §81"],"exercise":{"prompt":{"fr":"","en":"A lessor leases a warehouse under a 3-year operating lease: 30,000 in year 1, then 48,000 per year in years 2 and 3, paid at year-end. Method used: straight-line. Record the year 1 entry; the cash line is given.","es":""},"explanation":{"fr":"","en":"Total lease payments: 30,000 + 2 × 48,000 = 126,000; straight-line income: 126,000 / 3 = 42,000 per year (IFRS 16, para. 81). Year 1: 30,000 collected, 12,000 of accrued lease income. Debits 30,000 + 12,000 = credit 42,000.","es":""},"common_error":{"fr":"","en":"Crediting income with only the rent collected (30,000), or reversing the direction by recording deferred income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"ACCRUED_LEASE_INCOME","text":{"fr":"","en":"Accrued lease income (straight-lining)","es":""}},{"id":"LEASE_INCOME","text":{"fr":"","en":"Lease income","es":""}},{"id":"DEFERRED_INCOME","text":{"fr":"","en":"Deferred income","es":""}},{"id":"FINANCE_LEASE_RECEIVABLE","text":{"fr":"","en":"Finance lease receivable","es":""}}],"lines":[{"id":"L1","account":"CASH","side":"DEBIT","amount":30000,"given":["account","side","amount"]},{"id":"L2","account":"ACCRUED_LEASE_INCOME","side":"DEBIT","amount":12000},{"id":"L3","account":"LEASE_INCOME","side":"CREDIT","amount":42000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000136","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"OPERATING_LEASE_LESSOR_COMMON_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":210,"lesson_id":"LS.IFRS16.000015","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"costs-and-depreciation"},"references":["IFRS 16 §81","IFRS 16 §83","IFRS 16 §84","IFRS 16 §85","IFRS 16 §86"],"exercise":{"prompt":{"fr":"","en":"A truck manufacturer leases part of its production under operating leases. Here is the memo describing its accounting policies. Spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Operating lease by a manufacturer: no profit (IFRS 16, para. 86), initial direct costs spread over the lease term (IFRS 16, para. 83), depreciation consistent with similar assets (IFRS 16, para. 84), IAS 36 for impairment (IFRS 16, para. 85), straight-line income including rent-free periods (IFRS 16, para. 81).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"On entering into each lease, the profit that would have been made on a sale is recognised.","es":""},"erroneous":true,"correction":{"fr":"","en":"No selling profit is recognised on entering into an operating lease, which is not equivalent to a sale (IFRS 16, para. 86).","es":""}},{"id":"S2","text":{"fr":"","en":"Commissions paid to introducers to obtain the leases are expensed immediately.","es":""},"erroneous":true,"correction":{"fr":"","en":"These initial direct costs are added to the carrying amount of the leased trucks and expensed over the lease term on the same basis as the income (IFRS 16, para. 83).","es":""}},{"id":"S3","text":{"fr":"","en":"Leased trucks are depreciated under the same policy as similar trucks in the fleet, in accordance with IAS 16.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"Leased trucks are tested for impairment under IAS 36 when there is an indication of impairment.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"During the two rent-free months offered at the start of the lease, no lease income is recognised.","es":""},"erroneous":true,"correction":{"fr":"","en":"Total lease payments are spread on a straight-line basis over the whole term, rent-free months included (IFRS 16, para. 81).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000137","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.MODIFICATIONS"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"FINANCE_LEASE_MODIFICATION_TREATMENT","difficulty":"ADVANCED","estimated_time_s":210,"lesson_id":"LS.IFRS16.000015","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"finance-modification"},"references":["IFRS 16 §79","IFRS 16 §80"],"exercise":{"prompt":{"fr":"","en":"A finance company modifies several finance leases of industrial machines. Classify each modification according to its accounting treatment by the lessor.","es":""},"explanation":{"fr":"","en":"An asset added at its stand-alone price: separate lease (IFRS 16, para. 79). Otherwise, if the lease would have been an operating lease with the modification from inception: new lease from the effective date, asset measured at the net investment immediately before; in other cases: IFRS 9 (IFRS 16, para. 80).","es":""},"common_error":{"fr":"","en":"Applying IFRS 9 to every modification, without first testing for a separate lease and then the hypothetical classification.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SEPARATE_LEASE","text":{"fr":"","en":"Separate lease","es":""}},{"id":"NEW_OPERATING_LEASE","text":{"fr":"","en":"New operating lease, based on the net investment","es":""}},{"id":"IFRS9","text":{"fr":"","en":"Application of IFRS 9","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"A second machine is added to the lease for an additional rent equal to its usual lease price.","es":""},"category":"SEPARATE_LEASE"},{"id":"I2","text":{"fr":"","en":"Term cut from 8 to 3 years for a machine with a 10-year economic life; with this term from the outset, the lease would have been an operating lease.","es":""},"category":"NEW_OPERATING_LEASE"},{"id":"I3","text":{"fr":"","en":"Two payments deferred for a lessee in difficulty; the modified lease would still have been a finance lease.","es":""},"category":"IFRS9"},{"id":"I4","text":{"fr":"","en":"Removal of the token-price purchase option; without it, the lease would have been classified as an operating lease from inception.","es":""},"category":"NEW_OPERATING_LEASE"},{"id":"I5","text":{"fr":"","en":"Reduction in the rate of the remaining lease payments; the modified lease would still have been a finance lease.","es":""},"category":"IFRS9"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000138","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING","IFRS16.LESSOR_OPERATING.MODIFICATIONS"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"HOSPITALITY","tested_point":"OPERATING_LEASE_DISCOUNT_AND_MODIFICATION","difficulty":"EXPERT","estimated_time_s":480,"lesson_id":"LS.IFRS16.000015","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"numeric-example"},"references":["IFRS 16 §81","IFRS 16 §87"],"exercise":{"prompt":{"fr":"","en":"Follow the operating lease of a hotel, from its conclusion to its renegotiation.","es":""},"explanation":{"fr":"","en":"Straight-line income despite the year 1 discount (IFRS 16, para. 81), then a new lease from the effective date of the renegotiation, carrying over the accrued lease income (IFRS 16, para. 87; direction of the adjustment = method used for the example).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"A property company leases a hotel to an operator under a 4-year operating lease. Base rent: 60,000 per year, paid at year-end; to launch operations, the year 1 rent is reduced to 30,000. Method used: straight-line. At the start of year 3, after a difficult season, the parties reduce the rent for each of the last two years to 50,000, without changing the term (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"Complete for the original lease.","es":""},"explanation":{"fr":"","en":"30,000 + 3 × 60,000 = 210,000; 210,000 / 4 = 52,500 per year (IFRS 16, para. 81).","es":""},"common_error":{"fr":"","en":"Taking the rent collected each year as income: the straight-line method spreads total rents over the term.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Total lease payments under the original lease = {{total}}; annual straight-line income = {{annual}}.","es":""},"blanks":[{"id":"total","mode":"NUMBER","answer":210000,"tolerance":0},{"id":"annual","mode":"NUMBER","answer":52500,"tolerance":0}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Calculate the accrued lease income at the end of years 1 and 2.","es":""},"explanation":{"fr":"","en":"Year 1: 52,500 − 30,000 = 22,500. Year 2: 22,500 + 52,500 − 60,000 = 15,000.","es":""},"common_error":{"fr":"","en":"Forgetting to carry forward the year-1 accrued rent into the year-2 calculation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual straight-line income","es":""},"value":"52500","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Accrued lease income at the end of year 1","es":""},"answer":22500,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Accrued lease income at the end of year 2","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Accrued lease income at the end of year 1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual straight-line income","es":""},"value":52500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"rent is reduced to 30,000","es":""},"value":30000}],"result":22500,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Accrued lease income at the end of year 2","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accrued lease income at the end of year 1","es":""},"value":22500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual straight-line income","es":""},"value":52500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Base rent: 60,000","es":""},"value":60000}],"result":15000,"unit":"EUR"}],"references":["REF.IFRS16.81","REF.IFRS16.87"]}},{"prompt":{"fr":"","en":"How does the property company account for the renegotiation at the start of year 3?","es":""},"explanation":{"fr":"","en":"The lessor accounts for a modification to an operating lease as a new lease from its effective date, including in the payments any prepaid or accrued lease payments of the original lease (IFRS 16, para. 87).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a new lease from the effective date, the existing accrued lease income being included in its payments","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"By keeping income at 52,500 and recognising a loss for the rent reduction","es":""},"correct":false,"feedback":{"fr":"","en":"A modification of an operating lease creates a new lease; the old straight-lining stops (IFRS 16, para. 87).","es":""}},{"id":"C","text":{"fr":"","en":"By restating income for years 1 and 2","es":""},"correct":false,"feedback":{"fr":"","en":"The modification applies from its effective date, with no restatement of the past (IFRS 16, para. 87).","es":""}}],"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the annual income under the new lease, using the lesson's method (accrued lease income reduces the total to be spread).","es":""},"explanation":{"fr":"","en":"Method of the example: 2 × 50,000 − 15,000 = 85,000; 85,000 / 2 = 42,500 per year (IFRS 16, para. 87). Check: 2 × 52,500 + 2 × 42,500 = 190,000 = 30,000 + 60,000 + 2 × 50,000 collected.","es":""},"common_error":{"fr":"","en":"Spreading the new rents without deducting the existing accrued rent: income would be counted twice.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"New rents (2 years)","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Accrued lease income at the effective date","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total to be spread","es":""},"answer":85000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Annual income for years 3 and 4","es":""},"answer":42500,"tolerance":0,"unit":"EUR"}],"id":"P4","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total to be spread","es":""},"expression":"2 * a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"New rents (2 years)","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accrued lease income at the effective date","es":""},"value":15000,"unit":"EUR"}],"result":85000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Annual income for years 3 and 4","es":""},"expression":"a / 2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total to be spread","es":""},"value":85000,"unit":"EUR"}],"result":42500,"unit":"EUR"}],"references":["REF.IFRS16.87"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000139","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.MODIFICATIONS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"HEALTHCARE","tested_point":"FINANCE_LEASE_MODIFICATION_SEPARATE_LEASE","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS16.000015","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"finance-modification"},"references":["IFRS 16 §79","IFRS 16 §80"],"exercise":{"prompt":{"fr":"","en":"A lessor has leased two imaging devices to a clinic under a finance lease. During the lease, the clinic obtains the right to use a third device; the rent increases by an amount equal to the usual lease price of that device, adjusted for a discount customary for this customer. How does the lessor account for this modification?","es":""},"explanation":{"fr":"","en":"Both conditions are met: the scope increases with the right to use an additional asset, and the consideration increases by an amount commensurate with its stand-alone price, adjusted for the circumstances of the contract (IFRS 16, para. 79). The modification is a separate lease.","es":""},"common_error":{"fr":"","en":"Thinking that the discount granted prevents a separate lease: an adjustment reflecting the circumstances of the contract remains compatible with the second condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a separate lease, the original lease continuing as before","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a new operating lease covering the three devices","es":""},"correct":false,"feedback":{"fr":"","en":"This route applies only to non-separate modifications that would have led to an operating lease (IFRS 16, para. 80).","es":""}},{"id":"C","text":{"fr":"","en":"As a modification of the existing receivable under IFRS 9","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 applies only to non-separate modifications that would not have led to an operating lease (IFRS 16, para. 80).","es":""}},{"id":"D","text":{"fr":"","en":"By reclassifying the whole original lease at the date of the modification","es":""},"correct":false,"feedback":{"fr":"","en":"When the modification is a separate lease, the original lease is not called into question; only the addition is classified and accounted for separately (IFRS 16, para. 79).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000140","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"EQUIPMENT_LEASING","tested_point":"LESSOR_DISCLOSURE_BY_LEASE_TYPE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000016","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"how"},"references":["IFRS 16 §90","IFRS 16 §92","IFRS 16 §93","IFRS 16 §94","IFRS 16 §95","IFRS 16 §96","IFRS 16 §97"],"exercise":{"prompt":{"fr":"","en":"An equipment lessor holds both finance leases and operating leases. Classify each disclosure according to the type of lease it relates to.","es":""},"explanation":{"fr":"","en":"Selling profit, changes in the net investment and the reconciliation relate to finance leases (IFRS 16, paras. 90, 93 and 94). The IAS 16 disaggregation and the IAS 36 disclosures relate to assets under operating leases (IFRS 16, paras. 95 and 96). The undiscounted maturity analysis is required for both (IFRS 16, paras. 94 and 97), as is the explanation of risk management on retained rights (IFRS 16, para. 92).","es":""},"common_error":{"fr":"","en":"Thinking the maturity analysis concerns only finance leases, whereas para. 97 also requires it for operating leases.","es":""},"format":"CLASSIFICATION","categories":[{"id":"FINANCE","text":{"fr":"","en":"Finance leases only","es":""}},{"id":"OPERATING","text":{"fr":"","en":"Operating leases only","es":""}},{"id":"BOTH","text":{"fr":"","en":"Both types of lease","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Selling profit of a manufacturer lessor","es":""},"category":"FINANCE"},{"id":"I2","text":{"fr":"","en":"Explanation of significant changes in the net investment","es":""},"category":"FINANCE"},{"id":"I3","text":{"fr":"","en":"Reconciliation of undiscounted payments to the net investment","es":""},"category":"FINANCE"},{"id":"I4","text":{"fr":"","en":"Analysis of undiscounted payments receivable, by year for five years then in total","es":""},"category":"BOTH"},{"id":"I5","text":{"fr":"","en":"Disaggregation of each class of property, plant and equipment between leased and non-leased assets","es":""},"category":"OPERATING"},{"id":"I6","text":{"fr":"","en":"IAS 36 disclosures on the leased assets","es":""},"category":"OPERATING"},{"id":"I7","text":{"fr":"","en":"Risk management strategy for the rights retained in underlying assets","es":""},"category":"BOTH"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000141","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"LESSOR_RECONCILIATION_NET_INVESTMENT","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000016","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"numeric-example"},"references":["IFRS 16 §94"],"exercise":{"prompt":{"fr":"","en":"Case data: Flotauto, a lessor of commercial vehicles, is preparing the note for one of its finance leases at the reporting date. Calculate the components of the reconciliation required by IFRS 16 (amounts to the cent).","es":""},"explanation":{"fr":"","en":"Undiscounted payments: 3 × 50,000 = 150,000. Present value of the payments: 50,000 × 2.673012 = 133,650.60, hence unearned finance income of 150,000 − 133,650.60 = 16,349.40. Discounted unguaranteed residual value: 10,000 ÷ 1.191016 = 8,396.19. Net investment: 133,650.60 + 8,396.19 = 142,046.79. The reconciliation must identify the unearned finance income and the discounted unguaranteed residual value (IFRS 16, para. 94); the residual value is not part of the maturity analysis, which covers lease payments only.","es":""},"common_error":{"fr":"","en":"Adding the undiscounted unguaranteed residual value (10,000) to the payments receivable, which inflates the maturity analysis and distorts unearned finance income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Number of remaining annual lease payments receivable (paid at year end)","es":""},"value":"3","unit":"UNITS"},{"label":{"fr":"","en":"Amount of each lease payment","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Unguaranteed residual value at the end of the lease (in 3 years)","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease (case data)","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Annuity factor 6%, 3 years","es":""},"value":"2.673012","unit":"TEXT"},{"label":{"fr":"","en":"1.06³","es":""},"value":"1.191016","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Undiscounted lease payments receivable","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Unearned finance income on those payments","es":""},"answer":16349.4,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Discounted unguaranteed residual value","es":""},"answer":8396.19,"tolerance":0.05,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Net investment at the reporting date","es":""},"answer":142046.79,"tolerance":0.1,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Undiscounted lease payments receivable","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Number of remaining annual lease payments receivable (paid at year end)","es":""},"value":3,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Amount of each lease payment","es":""},"value":50000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"The reconciliation must identify the unearned finance income and the discounted unguaranteed residual value (IFRS 16, para. 94)","es":""},"references":["REF.IFRS16.94"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000142","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"DOCUMENTATION","format":"MULTIPLE_CHOICE","context":"HEALTHCARE","tested_point":"LESSOR_FINANCE_LEASE_INCOME_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS16.000016","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"finance-lease-disclosures"},"references":["IFRS 16 §90","IFRS 16 §91"],"exercise":{"prompt":{"fr":"","en":"Case data: in N, an imaging equipment manufacturer acting as lessor records the following amounts: selling profit on finance leases entered into 120,000; finance income on the net investment 85,000; per-scan fees, not included in the net investment, 14,000; lease payments collected on finance leases 310,000; operating lease income on other devices 40,000. Which amounts appear in the table of income from its finance leases?","es":""},"explanation":{"fr":"","en":"For finance leases, the lessor discloses selling profit, finance income on the net investment and income relating to variable lease payments not included in the net investment; operating lease income is presented separately (IFRS 16, para. 90). This information is generally presented in tabular form (IFRS 16, para. 91).","es":""},"common_error":{"fr":"","en":"Confusing cash collected with income, or mixing operating lease and finance lease income in the same table.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The selling profit of 120,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The finance income of 85,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The per-scan fees of 14,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The lease payments collected of 310,000","es":""},"correct":false,"feedback":{"fr":"","en":"A collection is not income: in a finance lease, it partly repays the receivable and only its finance portion is income.","es":""}},{"id":"E","text":{"fr":"","en":"The operating lease income of 40,000","es":""},"correct":false,"feedback":{"fr":"","en":"They must be disclosed, but under operating leases, separately from finance lease income (IFRS 16, para. 90).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000143","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_PRESENTATION.STATEMENTS","IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"VEHICLE_LEASING","tested_point":"LESSOR_NOTE_REVIEW","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000016","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"pitfalls"},"references":["IFRS 16 §67","IFRS 16 §81","IFRS 16 §88","IFRS 16 §90","IFRS 16 §94","IFRS 16 §95","IFRS 16 §97"],"exercise":{"prompt":{"fr":"","en":"You are reviewing the draft note of a vehicle lessor that holds operating leases (with rent-free periods) and finance leases. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"S1 and S2 comply with the presentation rules (IFRS 16, paras. 88 and 67) and S5 with para. 94. S3 ignores that maturities are undiscounted (IFRS 16, para. 97), S4 confuses cash and income (IFRS 16, paras. 81 and 90), S6 omits the disaggregation required by para. 95.","es":""},"common_error":{"fr":"","en":"Using the discounted finance lease format for operating leases.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Vehicles leased out under operating leases are presented in the statement of financial position within vehicles.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Finance leases are presented as a receivable, at the amount of the net investment.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The maturity analysis of operating lease payments is presented at present value using the portfolio's average rate.","es":""},"erroneous":true,"correction":{"fr":"","en":"The maturity analysis of operating lease payments covers undiscounted amounts, by year for five years then in total (IFRS 16, para. 97).","es":""}},{"id":"S4","text":{"fr":"","en":"Operating lease income presented equals the rent collected, since the rent-free months bring no income.","es":""},"erroneous":true,"correction":{"fr":"","en":"The income presented is the lease income recognised, in principle on a straight-line basis over the lease term (IFRS 16, paras. 81 and 90), not the cash collected.","es":""}},{"id":"S5","text":{"fr":"","en":"The reconciliation of finance lease payments to the net investment shows unearned finance income and the discounted unguaranteed residual value.","es":""},"erroneous":false},{"id":"S6","text":{"fr":"","en":"The IAS 16 note presents the 'vehicles' class as a single block, without distinguishing vehicles under operating leases from those used by the lessor.","es":""},"erroneous":true,"correction":{"fr":"","en":"Each class of property, plant and equipment is split between assets subject to operating leases and assets not leased (IFRS 16, para. 95).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000144","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"SLB_RETAINED_RIGHT_OF_USE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"sale-accounting"},"references":["IFRS 16 §100"],"exercise":{"prompt":{"fr":"","en":"Case data: a retailer sells a store to a property company at market price and leases it back. The transfer is a sale under IFRS 15. Using the lesson's method (retained part = present value of lease payments ÷ fair value), calculate the retained part, the right-of-use asset and the gain recognised.","es":""},"explanation":{"fr":"","en":"Retained part: 360,000 ÷ 900,000 = 40%. The right-of-use asset is the proportion of the previous carrying amount relating to the right retained: 300,000 × 40% = 120,000. Total gain 900,000 − 300,000 = 600,000, of which only the 60% relating to the rights transferred is recognised: 360,000 (IFRS 16, para. 100). Measuring the retained part as present value ÷ fair value is the method used in the lesson.","es":""},"common_error":{"fr":"","en":"Measuring the right-of-use asset at the present value of the lease payments (360,000), as for an ordinary lease.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the store","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Fair value and sale price","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the leaseback payments","es":""},"value":"360000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Retained part","es":""},"answer":40,"tolerance":0,"unit":"PERCENT"},{"id":"S2","label":{"fr":"","en":"Right-of-use asset retained","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Gain recognised","es":""},"answer":360000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Retained part","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of the leaseback payments","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value and sale price","es":""},"value":900000,"unit":"EUR"}],"result":40,"unit":"PERCENT"},{"step":"S2","meaning":{"fr":"","en":"Right-of-use asset retained","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the store","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Retained part","es":""},"value":40,"unit":"PERCENT"}],"result":120000,"unit":"EUR"}],"rationale":{"fr":"","en":"Total gain 900,000 − 300,000 = 600,000, of which only the 60% relating to the rights transferred is recognised: 360,000 (IFRS 16, para. 100).","es":""},"references":["REF.IFRS16.100"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000145","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"SLB_GAIN_ON_RIGHTS_TRANSFERRED","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"numeric-example"},"references":["IFRS 16 §100"],"exercise":{"prompt":{"fr":"","en":"Case data: an energy distributor sells a storage depot to an infrastructure fund at market price and leases it back. The transfer is a sale under IFRS 15. Break down the gain on sale (lesson's method).","es":""},"explanation":{"fr":"","en":"Retained part: 1,250,000 ÷ 5,000,000 = 25%. Total gain: 5,000,000 − 2,000,000 = 3,000,000. Retained part not recognised: 3,000,000 × 25% = 750,000; gain recognised on the rights transferred: 2,250,000 (IFRS 16, para. 100). Right-of-use asset: 2,000,000 × 25% = 500,000. Entry check: cash 5,000,000 + right-of-use asset 500,000 = 5,500,000 = depot 2,000,000 + lease liability 1,250,000 + gain 2,250,000.","es":""},"common_error":{"fr":"","en":"Recognising the full gain of 3,000,000, as if the distributor had given up all its rights in the depot.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the depot","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Fair value and sale price","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the leaseback payments","es":""},"value":"1250000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total gain (fair value − carrying amount)","es":""},"answer":3000000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Part of the gain relating to the rights retained (not recognised)","es":""},"answer":750000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Gain recognised","es":""},"answer":2250000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Right-of-use asset retained","es":""},"answer":500000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total gain (fair value − carrying amount)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value and sale price","es":""},"value":5000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the depot","es":""},"value":2000000,"unit":"EUR"}],"result":3000000,"unit":"EUR"}],"references":["REF.IFRS16.100"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000146","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"SLB_ABOVE_MARKET_FINANCING","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"off-market-terms"},"references":["IFRS 16 §100","IFRS 16 §101","IFRS 16 §102"],"exercise":{"prompt":{"fr":"","en":"Case data: an automotive supplier sells a stamping plant and leases it back. The transfer is a sale under IFRS 15. The agreed price exceeds fair value; the 'price − fair value' basis is the more readily determinable. Calculate the sale and leaseback amounts (lesson's method).","es":""},"explanation":{"fr":"","en":"Above-market terms: the excess 3,300,000 − 3,000,000 = 300,000 is additional financing provided by the buyer (IFRS 16, paras. 101 and 102). Lease liability: 1,050,000 − 300,000 = 750,000. Retained part: 750,000 ÷ 3,000,000 = 25%; right-of-use asset: 1,200,000 × 25% = 300,000. Total gain calculated on fair value: 3,000,000 − 1,200,000 = 1,800,000; gain recognised: 1,800,000 × 75% = 1,350,000 (IFRS 16, para. 100).","es":""},"common_error":{"fr":"","en":"Calculating the gain on the price of 3,300,000 and keeping a lease liability of 1,050,000: the financing would then be treated as a gain.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the plant","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the plant","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Agreed sale price","es":""},"value":"3300000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the contractual lease payments","es":""},"value":"1050000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Additional financing","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Lease liability","es":""},"answer":750000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Right-of-use asset retained","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Gain recognised","es":""},"answer":1350000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Additional financing","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Agreed sale price","es":""},"value":3300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the plant","es":""},"value":3000000,"unit":"EUR"}],"result":300000,"unit":"EUR","rationale":{"fr":"","en":"Above-market terms: the excess 3,300,000 − 3,000,000 = 300,000 is additional financing provided by the buyer (IFRS 16, paras. 101 and 102).","es":""}},{"step":"S2","meaning":{"fr":"","en":"Lease liability","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of the contractual lease payments","es":""},"value":1050000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Additional financing","es":""},"value":300000,"unit":"EUR"}],"result":750000,"unit":"EUR"}],"references":["REF.IFRS16.100","REF.IFRS16.101","REF.IFRS16.102"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000147","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"SLB_LOSS_ON_RIGHTS_TRANSFERRED","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"sale-accounting"},"references":["IFRS 16 §100"],"exercise":{"prompt":{"fr":"","en":"Case data: an entity sells an office building, at market price, for less than its carrying amount, and leases it back. The transfer is a sale under IFRS 15. Teaching assumption: no impairment had to be recognised before the sale (value in use above carrying amount). Calculate the sale and leaseback amounts (lesson's method).","es":""},"explanation":{"fr":"","en":"Total loss: 900,000 − 800,000 = 100,000. Retained part: 300,000 ÷ 800,000 = 37.5%; right-of-use asset: 900,000 × 37.5% = 337,500. Only the loss relating to the rights transferred is recognised: 100,000 × 62.5% = 62,500 (IFRS 16, para. 100: the rule covers gains and losses). Check: cash 800,000 + right-of-use asset 337,500 + loss 62,500 = 1,200,000 = building 900,000 + lease liability 300,000. Professional judgment: in practice, a fair value below the carrying amount calls for checking, under IAS 36, that no impairment had to be recognised before the sale; the assumption in the question rules it out here.","es":""},"common_error":{"fr":"","en":"Recognising the full loss of 100,000 on the grounds that a loss must always be recognised immediately.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the building","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Fair value and sale price","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the leaseback payments","es":""},"value":"300000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total loss","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Right-of-use asset retained","es":""},"answer":337500,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Loss recognised","es":""},"answer":62500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the building","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value and sale price","es":""},"value":800000,"unit":"EUR"}],"result":100000,"unit":"EUR"}],"references":["REF.IFRS16.100"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000148","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"SLB_SALE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":240,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"entry"},"references":["IFRS 16 §100"],"exercise":{"prompt":{"fr":"","en":"Case data: a telecom operator sells a data centre (carrying amount 800,000) to an investor at its market price of 2,000,000 and leases it back; the present value of the lease payments is 600,000. The transfer is a sale under IFRS 15. Record the seller-lessee's entry at the transaction date (lesson's method).","es":""},"explanation":{"fr":"","en":"Retained part: 600,000 ÷ 2,000,000 = 30%. Right-of-use asset: 800,000 × 30% = 240,000. Total gain 1,200,000, of which 70% relates to the rights transferred: 840,000 (IFRS 16, para. 100). Debits 2,000,000 + 240,000 = 2,240,000; credits 800,000 + 600,000 + 840,000 = 2,240,000. No deferred income is recognised: the retained part of the gain is simply not recognised.","es":""},"common_error":{"fr":"","en":"Recognising the total gain of 1,200,000 and recording the retained part (360,000) as deferred income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"BUILDING","text":{"fr":"","en":"Building (data centre)","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"GAIN_ON_SALE","text":{"fr":"","en":"Gain on sale","es":""}},{"id":"DEFERRED_INCOME","text":{"fr":"","en":"Deferred income","es":""}},{"id":"FINANCIAL_LIABILITY","text":{"fr":"","en":"Financial liability","es":""}}],"lines":[{"id":"L1","account":"CASH","side":"DEBIT","amount":2000000,"given":["account","side"]},{"id":"L2","account":"ROU_ASSET","side":"DEBIT","amount":240000},{"id":"L3","account":"BUILDING","side":"CREDIT","amount":800000},{"id":"L4","account":"LEASE_LIABILITY","side":"CREDIT","amount":600000},{"id":"L5","account":"GAIN_ON_SALE","side":"CREDIT","amount":840000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000149","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"SLB_ABOVE_MARKET_ENTRY","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"entry"},"references":["IFRS 16 §100","IFRS 16 §101","IFRS 16 §102"],"exercise":{"prompt":{"fr":"","en":"Case data: a broadcasting group sells its studios (carrying amount 500,000, fair value 1,250,000) for an agreed price of 1,400,000 and leases them back; the present value of the contractual lease payments is 650,000. The transfer is a sale under IFRS 15 and the 'price − fair value' basis is the more readily determinable. Record the seller-lessee's entry (lesson's method).","es":""},"explanation":{"fr":"","en":"Price above fair value: 1,400,000 − 1,250,000 = 150,000 of additional financing (IFRS 16, paras. 101 and 102). Lease liability: 650,000 − 150,000 = 500,000. Retained part: 500,000 ÷ 1,250,000 = 40%; right-of-use asset: 500,000 × 40% = 200,000. Total gain on fair value: 750,000; gain recognised: 750,000 × 60% = 450,000 (IFRS 16, para. 100). Debits 1,600,000 = credits 500,000 + 500,000 + 150,000 + 450,000.","es":""},"common_error":{"fr":"","en":"Treating the excess price as a prepaid lease payment: that treatment is for below-market terms.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"BUILDING","text":{"fr":"","en":"Buildings (studios)","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"FINANCIAL_LIABILITY","text":{"fr":"","en":"Financial liability (additional financing)","es":""}},{"id":"GAIN_ON_SALE","text":{"fr":"","en":"Gain on sale","es":""}},{"id":"PREPAID_LEASE","text":{"fr":"","en":"Prepaid lease payments","es":""}}],"lines":[{"id":"L1","account":"CASH","side":"DEBIT","amount":1400000,"given":["account","side","amount"]},{"id":"L2","account":"ROU_ASSET","side":"DEBIT","amount":200000},{"id":"L3","account":"BUILDING","side":"CREDIT","amount":500000},{"id":"L4","account":"LEASE_LIABILITY","side":"CREDIT","amount":500000},{"id":"L5","account":"FINANCIAL_LIABILITY","side":"CREDIT","amount":150000},{"id":"L6","account":"GAIN_ON_SALE","side":"CREDIT","amount":450000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000150","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.NOT_A_SALE","IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PHARMA","tested_point":"SLB_NOT_A_SALE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"not-a-sale"},"references":["IFRS 16 §103","IFRS 15"],"exercise":{"prompt":{"fr":"","en":"Case data: a pharmaceutical laboratory sells its research centre (carrying amount 700,000) to a bank for 1,100,000 and leases it back. The contract gives it the right to repurchase the building at the end of the lease; the analysis concludes that the bank does not obtain control. Record the laboratory's entry at the transaction date.","es":""},"explanation":{"fr":"","en":"The seller's repurchase right, which must be considered (IFRS 15, para. 34), prevents the buyer from obtaining control (teaching reading): the transfer is not a sale. The laboratory continues to recognise the building (700,000, unchanged) and recognises a financial liability equal to the transfer proceeds, under IFRS 9 (IFRS 16, para. 103). No right-of-use asset, no lease liability, no gain.","es":""},"common_error":{"fr":"","en":"Derecognising the building and recognising a gain of 400,000 because legal title has passed to the bank.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"FINANCIAL_LIABILITY","text":{"fr":"","en":"Financial liability","es":""}},{"id":"BUILDING","text":{"fr":"","en":"Building (research centre)","es":""}},{"id":"ROU_ASSET","text":{"fr":"","en":"Right-of-use asset","es":""}},{"id":"LEASE_LIABILITY","text":{"fr":"","en":"Lease liability","es":""}},{"id":"GAIN_ON_SALE","text":{"fr":"","en":"Gain on sale","es":""}}],"lines":[{"id":"L1","account":"CASH","side":"DEBIT","amount":1100000},{"id":"L2","account":"FINANCIAL_LIABILITY","side":"CREDIT","amount":1100000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000151","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"LOGISTICS","tested_point":"SLB_QUALIFICATION","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §99","IFRS 16 §100","IFRS 16 §103","IFRS 16 §B46","IFRS 16 §B47","IFRS 15"],"exercise":{"prompt":{"fr":"","en":"A logistics group analyses several transactions in which it transfers an asset and then uses it under a lease. Classify each situation (teaching assumption: where no clause is mentioned, the buyer obtains control under IFRS 15).","es":""},"explanation":{"fr":"","en":"I1 and I5: the group controlled the asset before the transfer (IFRS 16, para. B46) and the buyer obtains control: partial sale (IFRS 16, paras. 99 and 100). I2 and I3: a repurchase right or obligation of the seller, which must be considered (IFRS 15, para. 34), prevents the buyer from obtaining control (teaching reading): financial liability (IFRS 16, para. 103). I4: the group never controlled the forklifts; briefly holding title changes nothing: ordinary lease (IFRS 16, para. B47).","es":""},"common_error":{"fr":"","en":"Treating I4 as a sale and leaseback because the group held legal title before the lessor.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SALE","text":{"fr":"","en":"Sale and leaseback: the transfer is a sale","es":""}},{"id":"NOT_A_SALE","text":{"fr":"","en":"Sale and leaseback: the transfer is not a sale","es":""}},{"id":"ORDINARY_LEASE","text":{"fr":"","en":"Not a sale and leaseback: ordinary lease","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Sale of a logistics hub operated for 12 years, leased back for 6 years, with no repurchase clause","es":""},"category":"SALE"},{"id":"I2","text":{"fr":"","en":"Sale of a warehouse leased back; the group has the right to repurchase it at any time during the lease","es":""},"category":"NOT_A_SALE"},{"id":"I3","text":{"fr":"","en":"Sale of trucks leased back; the group has committed to repurchase them at the end of the lease","es":""},"category":"NOT_A_SALE"},{"id":"I4","text":{"fr":"","en":"The manufacturer, the lessor and the group negotiate together: the lessor buys the new forklifts and leases them to the group, which briefly receives title without ever controlling the forklifts","es":""},"category":"ORDINARY_LEASE"},{"id":"I5","text":{"fr":"","en":"Sorting machine bought and used by the group for 8 months, then sold to a finance company and leased back, with no repurchase clause","es":""},"category":"SALE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000152","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"HEALTHCARE","tested_point":"SLB_OFF_MARKET_FULL_CASE","difficulty":"EXPERT","estimated_time_s":600,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"subsequent-liability"},"references":["IFRS 16 §100","IFRS 16 §101","IFRS 16 §102","IFRS 16 §102A","IFRS 16 §29","IFRS 16 §35"],"exercise":{"prompt":{"fr":"","en":"Analyse the Bellerive clinic's sale and leaseback.","es":""},"explanation":{"fr":"","en":"The sale and leaseback is dealt with in three stages: neutralise the off-market price (financing of 400,000, IFRS 16, paras. 101 and 102), measure the partial sale (right-of-use asset 640,000, gain 1,440,000, IFRS 16, para. 100), then bring back no gain or loss on the retained right in later remeasurements (IFRS 16, para. 102A).","es":""},"common_error":{"fr":"","en":"Calculating the gain on the contractual price and recognising the whole price − carrying amount difference.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The Bellerive clinic sells its main building to a property company and leases it back for 15 years. The transfer satisfies the IFRS 15 requirements to be a sale (case data). The agreed price exceeds the fair value of the building; the 'price − fair value' basis is the more readily determinable (case data). Management would like to present a gain on sale of 2,800,000.","es":""},"exhibits":[{"title":{"fr":"","en":"Transaction data","es":""},"body":{"fr":"","en":"Carrying amount of the building: 1,600,000. Fair value: 4,000,000. Agreed price: 4,400,000. Present value of the contractual lease payments over 15 years: 2,000,000.","es":""}}],"parts":[{"prompt":{"fr":"","en":"How should the 400,000 difference between the agreed price and fair value be treated?","es":""},"explanation":{"fr":"","en":"Above-market terms are accounted for as additional financing provided by the buyer-lessor to the seller-lessee (IFRS 16, para. 101), measured here as price − fair value (IFRS 16, para. 102).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an addition to the gain on sale","es":""},"correct":false,"feedback":{"fr":"","en":"Sale proceeds are brought back to fair value: the excess is never a gain (IFRS 16, para. 101).","es":""}},{"id":"B","text":{"fr":"","en":"As additional financing provided by the property company","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a prepaid lease payment","es":""},"correct":false,"feedback":{"fr":"","en":"A prepayment corresponds to below-market terms; here the price is above market (IFRS 16, para. 101).","es":""}}],"id":"P1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the amounts to be recognised at the transaction date (lesson's method).","es":""},"explanation":{"fr":"","en":"Lease liability: 2,000,000 − 400,000 of financing = 1,600,000. Retained part: 1,600,000 ÷ 4,000,000 = 40%; right-of-use asset: 1,600,000 × 40% = 640,000. Total gain on fair value: 2,400,000; gain recognised: 2,400,000 × 60% = 1,440,000 (IFRS 16, para. 100). Check: 4,400,000 + 640,000 = 5,040,000 = 1,600,000 + 1,600,000 + 400,000 + 1,440,000. The 2,800,000 gain management wants (price − carrying amount) is not compliant.","es":""},"common_error":{"fr":"","en":"Recognising the gain as agreed price less carrying amount: it is computed on fair value and only for the portion transferred.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"1600000","unit":"EUR"},{"label":{"fr":"","en":"Fair value","es":""},"value":"4000000","unit":"EUR"},{"label":{"fr":"","en":"Agreed price","es":""},"value":"4400000","unit":"EUR"},{"label":{"fr":"","en":"Present value of contractual lease payments","es":""},"value":"2000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Lease liability","es":""},"answer":1600000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Right-of-use asset retained","es":""},"answer":640000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Gain recognised","es":""},"answer":1440000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Three years later, the clinic must remeasure its lease liability. What constraint does IFRS 16 impose?","es":""},"explanation":{"fr":"","en":"After the commencement date, the seller-lessee determines lease payments or revised lease payments so that it recognises no gain or loss relating to the right of use retained; any gain or loss on partial or full termination is still recognised in profit or loss (IFRS 16, para. 102A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise at that point the part of the gain not recognised at the time of the sale","es":""},"correct":false,"feedback":{"fr":"","en":"This is precisely what para. 102A prevents: no gain or loss on the right of use retained.","es":""}},{"id":"B","text":{"fr":"","en":"Determine the lease payments so that no gain or loss is recognised on the right of use retained, except on partial or full termination","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Remeasure the right-of-use asset each year to the fair value of the building","es":""},"correct":false,"feedback":{"fr":"","en":"The right-of-use asset follows the general lessee model (paras. 29 to 35), not an annual measurement at the building's fair value (IFRS 16, para. 102A).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000153","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT","IFRS16.SALE_LEASEBACK.NOT_A_SALE"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"AGRIFOOD","tested_point":"SLB_REPURCHASE_OPTION_CASE","difficulty":"ADVANCED","estimated_time_s":480,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"judgment"},"references":["IFRS 16 §99","IFRS 16 §103","IFRS 16 §B45","IFRS 15","IFRS 15 §38"],"exercise":{"prompt":{"fr":"","en":"Analyse the transaction between the Agrinord cooperative and its bank.","es":""},"explanation":{"fr":"","en":"Legal title is not enough (IFRS 15, para. 38; IFRS 16, para. B45); the repurchase right, to be considered (IFRS 15, para. 34), prevents the transfer of control (teaching reading). The transaction is a financing: financial liability for Agrinord, financial asset for the bank (IFRS 16, para. 103).","es":""},"common_error":{"fr":"","en":"Reading only the deed of sale and ignoring the amendment that contains the repurchase right.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The Agrinord cooperative sells its storage silo (carrying amount 1,300,000) to its bank for 2,000,000 and leases it back for 10 years. The deed of sale transfers legal title to the bank. An amendment signed the same day gives Agrinord the right to repurchase the silo at any time from the fifth year (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"Which of the following are indicators of transfer of control listed in IFRS 15?","es":""},"explanation":{"fr":"","en":"IFRS 15 lists, among others, the seller's present right to payment, legal title, physical possession, transfer of the significant risks and rewards and acceptance of the asset (IFRS 15, para. 38).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The customer has legal title","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The customer has physical possession of the asset","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The customer has the significant risks and rewards of ownership","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The sale price exceeds the carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"The level of the price compared with the carrying amount does not indicate who controls the asset.","es":""}},{"id":"E","text":{"fr":"","en":"The seller continues to use the asset","es":""},"correct":false,"feedback":{"fr":"","en":"This is not one of the IFRS 15 indicators; in a sale and leaseback, the seller always uses the asset through the lease.","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"The bank holds legal title. Is the transfer a sale?","es":""},"explanation":{"fr":"","en":"The seller-lessee applies IFRS 15 (IFRS 16, para. 99). Any repurchase agreement must be considered (IFRS 15, para. 34): when the seller holds a repurchase right, the buyer does not obtain control, even with title or possession (teaching reading). The amendment, signed the same day, is read together with the deed of sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because legal title has been transferred","es":""},"correct":false,"feedback":{"fr":"","en":"Title is only an indicator and does not by itself determine the accounting (IFRS 15, para. 38; IFRS 16, para. B45).","es":""}},{"id":"B","text":{"fr":"","en":"No, because Agrinord's repurchase right prevents the bank from obtaining control of the silo","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Yes for the first five years, no thereafter","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis is made at the transfer date, on all the rights: the repurchase right, which must be considered (IFRS 15, para. 34), limits from the outset the bank's ability to direct the use of the silo (teaching reading).","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Record the bank's (buyer-lessor's) entry at the transaction date.","es":""},"explanation":{"fr":"","en":"As the transfer is not a sale, the bank does not recognise the silo: it recognises a financial asset equal to the amount transferred, under IFRS 9. Symmetrically, Agrinord keeps the silo at 1,300,000 and recognises a financial liability of 2,000,000 (IFRS 16, para. 103).","es":""},"common_error":{"fr":"","en":"Recording the silo in the bank's assets: without a sale, it recognises a financial receivable.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"FINANCIAL_ASSET","text":{"fr":"","en":"Financial asset (receivable from Agrinord)","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"BUILDING","text":{"fr":"","en":"Building (silo)","es":""}},{"id":"LEASE_RECEIVABLE","text":{"fr":"","en":"Finance lease receivable","es":""}}],"lines":[{"id":"L1","account":"FINANCIAL_ASSET","side":"DEBIT","amount":2000000},{"id":"L2","account":"CASH","side":"CREDIT","amount":2000000,"given":["account","side"]}],"id":"P3","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000154","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"HOSPITALITY","tested_point":"SLB_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"pitfalls"},"references":["IFRS 16 §26","IFRS 16 §100","IFRS 16 §101","IFRS 16 §102A"],"exercise":{"prompt":{"fr":"","en":"Case data: a hotel group sells a hotel (carrying amount 1,000,000) at its market price of 2,500,000 and leases it back at market rents; the present value of the lease payments is 1,000,000; the transfer is a sale under IFRS 15. Spot the errors in the working paper prepared by a staff member (lesson's method).","es":""},"explanation":{"fr":"","en":"S1 is correct (present value of lease payments, IFRS 16, para. 26) and so is S4 (no off-market terms, IFRS 16, para. 101). S2 and S3 ignore the partial sale of para. 100: right-of-use asset 400,000, gain 900,000; check: 2,500,000 + 400,000 = 2,900,000 = 1,000,000 + 1,000,000 + 900,000. S5 contradicts para. 102A.","es":""},"common_error":{"fr":"","en":"Treating the leaseback as an ordinary lease, independent of the sale.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The lease liability is recognised at 1,000,000, the present value of the lease payments.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The right-of-use asset is recognised at 1,000,000, as for any lease.","es":""},"erroneous":true,"correction":{"fr":"","en":"In a sale and leaseback, the right-of-use asset is the retained proportion of the previous carrying amount: 1,000,000 × (1,000,000 ÷ 2,500,000) = 400,000 (IFRS 16, para. 100).","es":""}},{"id":"S3","text":{"fr":"","en":"The gain on sale recognised is 1,500,000 (2,500,000 − 1,000,000).","es":""},"erroneous":true,"correction":{"fr":"","en":"Only the part relating to the rights transferred is recognised: 1,500,000 × 60% = 900,000 (IFRS 16, para. 100).","es":""}},{"id":"S4","text":{"fr":"","en":"As the price equals fair value and the rents are at market rates, no adjustment for off-market terms is needed.","es":""},"erroneous":false},{"id":"S5","text":{"fr":"","en":"On a future remeasurement of the lease liability, the unrecognised part of the gain (600,000) may be recognised in profit or loss.","es":""},"erroneous":true,"correction":{"fr":"","en":"Lease payments are determined so that no gain or loss is recognised on the right of use retained, except on partial or full termination (IFRS 16, para. 102A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000155","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"AVIATION","tested_point":"SLB_LEGAL_TITLE_NOT_DECISIVE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS16.000017","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §B45","IFRS 16 §B46","IFRS 16 §B47"],"exercise":{"prompt":{"fr":"","en":"An airline briefly obtains legal title to a new aircraft before the lessor buys it from the manufacturer to lease it to the airline. This passage of title alone is enough to make the transaction a sale and leaseback.","es":""},"explanation":{"fr":"","en":"False. Obtaining title does not by itself determine the accounting (IFRS 16, para. B45). What matters is control: if the airline controls the aircraft before transferring it, it is a sale and leaseback (IFRS 16, para. B46); otherwise it is an ordinary lease, even if it held title (IFRS 16, para. B47).","es":""},"common_error":{"fr":"","en":"Reasoning on legal form (who holds title) rather than on control of the asset.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000156","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.TRANSITION.LESSEE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"TRANSITION_DATE_OF_INITIAL_APPLICATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS16.000018","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000018","section_id":"transition-methods"},"references":["IFRS 16 §C2","IFRS 16 §C7"],"exercise":{"prompt":{"fr":"","en":"Case data: a store chain has a 30 June year end. It first applies IFRS 16 in its financial statements for the year ended 30 June N+1, which present one comparative year. It uses the cumulative-effect method. What is the date of initial application?","es":""},"explanation":{"fr":"","en":"The date of initial application is the beginning of the annual reporting period in which the standard is first applied (IFRS 16, para. C2): the year ended 30 June N+1 begins on 1 July N. The cumulative effect is recognised in opening retained earnings at that date (IFRS 16, para. C7).","es":""},"common_error":{"fr":"","en":"Confusing the date of initial application with the start of the comparative period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 July N","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"30 June N+1","es":""},"correct":false,"feedback":{"fr":"","en":"This is the reporting date, not the start of the year of initial application (IFRS 16, para. C2).","es":""}},{"id":"C","text":{"fr":"","en":"1 July N−1","es":""},"correct":false,"feedback":{"fr":"","en":"This is the start of the comparative year; under the cumulative-effect method, comparatives are not restated (IFRS 16, para. C7).","es":""}},{"id":"D","text":{"fr":"","en":"The commencement date of each lease","es":""},"correct":false,"feedback":{"fr":"","en":"The date of initial application is a single date for the entity; it does not depend on each lease (IFRS 16, para. C2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000157","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.TRANSITION.LESSEE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"TRANSITION_FORMER_OPERATING_LEASE_MEASUREMENT","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS16.000018","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000018","section_id":"measurement-c8"},"references":["IFRS 16 §C7","IFRS 16 §C8"],"exercise":{"prompt":{"fr":"","en":"Case data: a distributor applies the cumulative-effect method. A former operating lease of a warehouse has, at the date of initial application, 4 remaining annual payments of 25,000 paid at the end of each year. Immediately before that date, an accrued lease payment of 3,000 relating to this lease is recognised. For this lease the entity chooses the option 'right-of-use asset equal to the adjusted lease liability'. Calculate the transition amounts.","es":""},"explanation":{"fr":"","en":"Liability: remaining payments discounted at the incremental borrowing rate at the date of initial application, 25,000 × 3.5459505 = 88,648.76 (IFRS 16, para. C8); the original 3% rate is not used. Right-of-use asset (option equal to the adjusted liability): 88,648.76 − 3,000 accrued = 85,648.76. Logic of the adjustment: the 3,000 liability already recognised is settled against the right-of-use asset (Debit Right-of-use asset 85,648.76 + Debit Accrued lease payment 3,000 = Credit Lease liability 88,648.76). No difference is recognised in equity (IFRS 16, para. C7).","es":""},"common_error":{"fr":"","en":"Adding the accrued lease payment to the right-of-use asset, as if it were a prepayment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Number of remaining annual payments","es":""},"value":"4","unit":"UNITS"},{"label":{"fr":"","en":"Amount of each payment","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Incremental borrowing rate at the date of initial application","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Incremental borrowing rate at lease inception (irrelevant information)","es":""},"value":"3","unit":"PERCENT"},{"label":{"fr":"","en":"Annuity factor 5%, 4 years","es":""},"value":"3.5459505","unit":"TEXT"},{"label":{"fr":"","en":"Accrued lease payment recognised immediately before the date of initial application","es":""},"value":"3000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Lease liability","es":""},"answer":88648.76,"tolerance":0.05,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Right-of-use asset","es":""},"answer":85648.76,"tolerance":0.05,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Effect on opening retained earnings","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability","es":""},"value":88648.76,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accrued lease payment recognised immediately before the date of initial application","es":""},"value":3000,"unit":"EUR"}],"result":85648.76,"unit":"EUR"}],"references":["REF.IFRS16.C7","REF.IFRS16.C8"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000158","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.TRANSITION.LESSEE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"TELECOM","tested_point":"TRANSITION_EXPEDIENTS_VS_REQUIREMENTS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS16.000018","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000018","section_id":"practical-expedients"},"references":["IFRS 16 §C3","IFRS 16 §C7","IFRS 16 §C8","IFRS 16 §C10"],"exercise":{"prompt":{"fr":"","en":"A telecom operator is preparing its transition under the cumulative-effect method for several hundred former operating leases (masts, shops, vehicles). Classify each item: optional expedient, or rule that applies under this method?","es":""},"explanation":{"fr":"","en":"A single rate per portfolio, exclusion of initial direct costs and hindsight are optional expedients (IFRS 16, para. C10); so is not reassessing the definition of a lease (IFRS 16, para. C3). Under the cumulative-effect method, discounting at the incremental borrowing rate at the date of initial application (IFRS 16, para. C8) and not restating comparatives, with the effect recognised in opening equity (IFRS 16, para. C7), are required.","es":""},"common_error":{"fr":"","en":"Thinking the discount rate may be each lease's original rate, as an expedient.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EXPEDIENT","text":{"fr":"","en":"Optional expedient","es":""}},{"id":"REQUIREMENT","text":{"fr":"","en":"Rule of the cumulative-effect method","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Applying a single discount rate to all the mast leases, which have similar characteristics","es":""},"category":"EXPEDIENT"},{"id":"I2","text":{"fr":"","en":"Excluding initial direct costs from the measurement of the right-of-use assets","es":""},"category":"EXPEDIENT"},{"id":"I3","text":{"fr":"","en":"Using hindsight to determine the term of shop leases with options","es":""},"category":"EXPEDIENT"},{"id":"I4","text":{"fr":"","en":"Not reassessing whether existing service contracts contain a lease","es":""},"category":"EXPEDIENT"},{"id":"I5","text":{"fr":"","en":"Discounting the remaining payments at the incremental borrowing rate at the date of initial application","es":""},"category":"REQUIREMENT"},{"id":"I6","text":{"fr":"","en":"Not restating comparatives and recognising the cumulative effect in opening retained earnings","es":""},"category":"REQUIREMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000159","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.TRANSITION.LESSEE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"ENERGY","tested_point":"TRANSITION_FULL_RETROSPECTIVE_COMPARATIVES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS16.000018","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000018","section_id":"transition-methods"},"references":["IFRS 16 §C5","IFRS 16 §C7"],"exercise":{"prompt":{"fr":"","en":"An energy producer that chooses the full retrospective method presents a comparative year restated as if IFRS 16 had always been applied, whereas under the cumulative-effect method that comparative is not restated.","es":""},"explanation":{"fr":"","en":"True. Method (a) applies the standard to each prior period presented, under IAS 8 (IFRS 16, para. C5); method (b) does not restate comparatives and recognises the cumulative effect in opening equity at the date of initial application (IFRS 16, paras. C5 and C7).","es":""},"common_error":{"fr":"","en":"Thinking both methods give the same comparatives and differ only in the discount rate.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000160","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS","IFRS16.DEFINITIONS.KEY_TERMS"],"dimension":"DOCUMENTATION","format":"MINI_CASE","context":"TELECOM","tested_point":"FINANCE_LESSOR_NOTE","difficulty":"ADVANCED","estimated_time_s":420,"lesson_id":"LS.IFRS16.000016","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"numeric-example"},"references":["IFRS 16 §75","IFRS 16 §90","IFRS 16 §93","IFRS 16 §94"],"exercise":{"prompt":{"fr":"","en":"Prepare Netbail's note on its finance lease at the end of year 1.","es":""},"explanation":{"fr":"","en":"Finance lessor's note: income for the period (IFRS 16, para. 90), changes in the net investment (IFRS 16, para. 93), undiscounted maturities and reconciliation to the net investment, distinguishing undiscounted payments, unearned finance income and the discounted unguaranteed residual value (IFRS 16, para. 94).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Netbail, a non-manufacturer finance company, leases network equipment to a telecom operator under a 3-year finance lease. Lease payments of 100,000 at the end of each year; unguaranteed residual value accruing to Netbail at the end of the lease: 30,000; implicit rate: 5%; no variable payments (case data). Net investment at the commencement date: 298,239.93; finance income for year 1: 14,912.00; net investment at the end of year 1: 213,151.93 (taken from the finance lease follow-up case).","es":""},"parts":[{"prompt":{"fr":"","en":"Prepare the maturity analysis of the undiscounted lease payments receivable at the end of year 1.","es":""},"explanation":{"fr":"","en":"The two remaining payments are shown at their undiscounted amount, year by year: 100,000 in year 2 and 100,000 in year 3, i.e. 2 × 100,000 = 200,000. The unguaranteed residual value of 30,000 is not a lease payment: it is not part of the maturity analysis (IFRS 16, para. 94).","es":""},"common_error":{"fr":"","en":"Adding the unguaranteed residual value to the maturities, or showing discounted amounts: the analysis covers undiscounted lease payments.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual lease payment","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Lease payments still to be collected","es":""},"value":"2","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Year 2","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Year 3","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total undiscounted lease payments receivable","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"DOCUMENTATION","formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Total undiscounted lease payments receivable","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease payments still to be collected","es":""},"value":2,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Annual lease payment","es":""},"value":100000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"The unguaranteed residual value of 30,000 is not a lease payment: it is not part of the maturity analysis (IFRS 16, para. 94).","es":""},"references":["REF.IFRS16.94"]}},{"prompt":{"fr":"","en":"Prepare the reconciliation of the undiscounted payments to the net investment at the end of year 1 (rounded to the cent).","es":""},"explanation":{"fr":"","en":"Present value of the payments = 100,000 / 1.05 + 100,000 / 1.05² = 185,941.04; unearned finance income = 200,000 − 185,941.04 = 14,058.96; discounted unguaranteed residual value = 30,000 / 1.05² = 27,210.88; net investment = 185,941.04 + 27,210.88 = 213,151.93 (one-cent rounding difference). The reconciliation identifies the unearned finance income and the discounted unguaranteed residual value (IFRS 16, para. 94); the line layout follows the choice made in the lesson example, as the standard does not prescribe a format.","es":""},"common_error":{"fr":"","en":"Forgetting the discounted unguaranteed residual value: without it, the discounted payments do not explain the whole net investment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Undiscounted payments receivable","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Unguaranteed residual value","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Implicit rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Unearned finance income on the lease payments","es":""},"answer":14058.96,"tolerance":0.02,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Discounted unguaranteed residual value","es":""},"answer":27210.88,"tolerance":0.02,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Net investment at year end","es":""},"answer":213151.93,"tolerance":0.02,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Discounted unguaranteed residual value","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unguaranteed residual value","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Implicit rate","es":""},"value":5,"unit":"PERCENT"}],"result":27210.88,"unit":"EUR"}],"references":["REF.IFRS16.94"]}},{"prompt":{"fr":"","en":"What income for year 1 does Netbail disclose for this finance lease?","es":""},"explanation":{"fr":"","en":"For a finance lease, the lessor discloses selling profit or loss, finance income on the net investment and income from variable payments not included in the net investment (IFRS 16, para. 90). Netbail, not a manufacturer and with no variable payments, discloses only the finance income: 298,239.93 × 5% = 14,912.00 (IFRS 16, para. 75).","es":""},"common_error":{"fr":"","en":"Presenting the payment collected as income: under a finance lease, only the finance income on the net investment is income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Finance income on the net investment of 14,912.00, with no selling profit and no variable income","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Lease income of 100,000, equal to the payment collected","es":""},"correct":false,"feedback":{"fr":"","en":"The payment collected partly repays the receivable; only the finance income on the net investment is income for the period (IFRS 16, paras. 75 and 90).","es":""}},{"id":"C","text":{"fr":"","en":"A selling profit equal to the net investment at the commencement date","es":""},"correct":false,"feedback":{"fr":"","en":"Netbail is neither a manufacturer nor a dealer (case data): there is no selling profit to disclose (IFRS 16, para. 90).","es":""}}],"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"The note must also explain the change in the net investment in year 1: from 298,239.93 to 213,151.93, through finance income of 14,912.00 and the 100,000 payment collected.","es":""},"explanation":{"fr":"","en":"True. The lessor provides a qualitative and quantitative explanation of significant changes in the carrying amount of the net investment (IFRS 16, para. 93): 298,239.93 + 14,912.00 − 100,000 = 213,151.93 (IFRS 16, para. 75).","es":""},"common_error":{"fr":"","en":"Giving only the closing balance: the significant change in the net investment must be explained.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P4","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000161","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.TRANSITION.LESSEE"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"RETAIL","tested_point":"LESSEE_TRANSITION_CUMULATIVE_EFFECT","difficulty":"ADVANCED","estimated_time_s":360,"lesson_id":"LS.IFRS16.000018","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000018","section_id":"numeric-example"},"references":["IFRS 16 §C2","IFRS 16 §C5","IFRS 16 §C7","IFRS 16 §C8"],"exercise":{"prompt":{"fr":"","en":"Deal with the initial application of IFRS 16 to Ardelis's warehouse lease.","es":""},"explanation":{"fr":"","en":"Cumulative-effect method: comparatives not restated, cumulative effect in opening equity at the date of initial application (IFRS 16, paras. C2, C5 and C7); liability discounted at the incremental borrowing rate at that date and right-of-use asset under the option chosen lease by lease (IFRS 16, para. C8).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Ardelis, a fictitious distributor, applies IFRS 16 for the first time in the year from 1 January to 31 December N and uses the cumulative-effect method (the entity's choice). Its warehouse lease, previously classified as an operating lease, shows at 1 January N: 4 remaining payments of 25,000 at the end of each year; incremental borrowing rate at that date: 5%; accrued lease payment of 3,000 recognised immediately before that date. For the right-of-use asset, Ardelis uses the option \"equal to the adjusted lease liability\" (the entity's choice, case data).","es":""},"parts":[{"prompt":{"fr":"","en":"With the method chosen, how does Ardelis treat the N−1 comparative information?","es":""},"explanation":{"fr":"","en":"Under the cumulative-effect method, the lessee does not restate comparatives and recognises the cumulative effect of initial application in the opening balance of retained earnings (or another component of equity) at the date of initial application, here 1 January N, the beginning of the year of initial application (IFRS 16, paras. C2, C5 and C7).","es":""},"common_error":{"fr":"","en":"Restating N−1 when the cumulative-effect method has been chosen: comparatives are not changed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It does not restate it; any cumulative effect is recognised in opening retained earnings at 1 January N","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It restates it as if IFRS 16 had always been applied","es":""},"correct":false,"feedback":{"fr":"","en":"Restating prior periods corresponds to the full retrospective method (IFRS 16, para. C5(a)), which Ardelis did not choose.","es":""}},{"id":"C","text":{"fr":"","en":"It does not restate it and recognises the cumulative effect in profit or loss for N","es":""},"correct":false,"feedback":{"fr":"","en":"The cumulative effect does not go through profit or loss: it is recognised in opening equity (IFRS 16, para. C7).","es":""}}],"id":"P1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Calculate the lease liability and the right-of-use asset at 1 January N (rounded to the cent).","es":""},"explanation":{"fr":"","en":"Liability = remaining payments discounted at the incremental borrowing rate at the date of initial application: 25,000 × (1/1.05 + 1/1.05² + 1/1.05³ + 1/1.05⁴) = 25,000 × 3.545951 = 88,648.76. Right-of-use asset under the option chosen = liability adjusted for the accrued payment recognised immediately before that date: 88,648.76 − 3,000 = 85,648.76 (IFRS 16, para. C8). The accrued payment was a liability: it reduces the right-of-use asset.","es":""},"common_error":{"fr":"","en":"Adding the accrued payment to the right-of-use asset: a prepaid payment increases it, an accrued payment reduces it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Remaining annual payment","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Number of remaining payments","es":""},"value":"4","unit":"UNITS"},{"label":{"fr":"","en":"Incremental borrowing rate at the date of initial application","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Accrued lease payment","es":""},"value":"3000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Lease liability","es":""},"answer":88648.76,"tolerance":0.02,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Right-of-use asset","es":""},"answer":85648.76,"tolerance":0.02,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Lease liability","es":""},"expression":"a * (1 / (1 + b) + 1 / (1 + b)^2 + 1 / (1 + b)^3 + 1 / (1 + b)^4)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remaining annual payment","es":""},"value":25000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate at the date of initial application","es":""},"value":5,"unit":"PERCENT"}],"result":88648.76,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability","es":""},"value":88648.76,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accrued lease payment","es":""},"value":3000,"unit":"EUR"}],"result":85648.76,"unit":"EUR","rationale":{"fr":"","en":"Right-of-use asset under the option chosen = liability adjusted for the accrued payment recognised immediately before that date: 88,648.76 − 3,000 = 85,648.76 (IFRS 16, para. C8).","es":""}}],"references":["REF.IFRS16.C8"]}},{"prompt":{"fr":"","en":"Ardelis discounts the remaining payments at the incremental borrowing rate that applied at the lease commencement date, several years before N.","es":""},"explanation":{"fr":"","en":"False. For a former operating lease, the liability is measured at the present value of the remaining payments at the incremental borrowing rate at the date of initial application, 1 January N, not at the rate at the start of the lease (IFRS 16, para. C8).","es":""},"common_error":{"fr":"","en":"Using the rate at the start of the lease: under the cumulative-effect method, the rate is the one at the date of initial application.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"With the option chosen for the right-of-use asset, this lease gives rise to no difference to be recognised in opening retained earnings.","es":""},"explanation":{"fr":"","en":"True. The right-of-use asset (85,648.76) equals the liability (88,648.76) less the accrued payment already in the statement of financial position (3,000): 85,648.76 + 3,000 = 88,648.76, with no difference for this lease. Under the option \"as if the standard had always been applied\", the difference between right-of-use asset and liability would have been recognised in opening equity (IFRS 16, paras. C7 and C8). The choice of option is case data, not a requirement.","es":""},"common_error":{"fr":"","en":"Believing transition always creates an equity difference: with the option \"equal to the adjusted liability\", there is none for this lease.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P4","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS16.000162","source":"V2","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"RETAIL","tested_point":"SUBLEASE_PORTFOLIO_MINI","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IFRS16.000013","review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"subleases"},"references":["IFRS 16 §B58","IFRS 16 §6","IFRS 16 §63","IFRS 16 §B7"],"exercise":{"prompt":{"fr":"","en":"Classify Velmora's subleases and draw the consequences for its head leases.","es":""},"explanation":{"fr":"","en":"Summary: (a) short, exempted head lease, operating sublease (IFRS 16, para. B58(a)); (b) classification by reference to the remaining right-of-use asset, 5 years out of 6, an indicator of a finance lease to be confirmed by documented judgement (IFRS 16, paras. B58(b) and 63); (c) low-value asset exemption ruled out once a sublease is planned (IFRS 16, para. B7).","es":""},"common_error":{"fr":"","en":"Classifying a sublease by looking at the leased building or equipment instead of the right-of-use asset held by the intermediate lessor.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Velmora, a fashion retailer (a fictitious entity), is the lessee under several leases that it partly leases on to third parties. (a) It leases a pop-up unit for 10 months, for which it applied the short-term lease exemption; it subleases it for 6 months to a partner brand. (b) It leases a store for 8 years; after 2 years, it closes the shop and subleases the whole store to another retailer for 5 of the remaining 6 years. The building itself has an estimated economic life of 40 years (case data). (c) It leases 30 new payment terminals, each of low value, which it plans to sublease to the franchisees of its network. No other information is relevant.","es":""},"parts":[{"prompt":{"fr":"","en":"How does Velmora classify the sublease of the pop-up unit (a)?","es":""},"explanation":{"fr":"","en":"Velmora applied the short-term lease exemption to the head lease (IFRS 16, para. 6): the sublease is therefore an operating lease (IFRS 16, para. B58(a)). Rule to remember: short, exempted head lease, operating sublease.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an operating lease, with no further analysis","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a finance lease, because the sublease covers the major part of the 10 months","es":""},"correct":false,"feedback":{"fr":"","en":"There is no risks-and-rewards analysis here: a short-term head lease accounted for under the exemption requires an operating lease (IFRS 16, para. B58(a)).","es":""}},{"id":"C","text":{"fr":"","en":"By reference to the economic life of the unit itself","es":""},"correct":false,"feedback":{"fr":"","en":"The underlying asset is never the classification reference for a sublease; and for this exempted head lease, the classification is imposed: operating lease (IFRS 16, para. B58).","es":""}}],"id":"P1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"For the store (b), which analysis leads to the classification of the sublease?","es":""},"explanation":{"fr":"","en":"Outside the exemption, the sublease is classified by reference to the right-of-use asset arising from the head lease (IFRS 16, para. B58(b)). A lease term covering the major part of the economic life of the underlying asset is an example of a situation that would normally lead to a finance lease (IFRS 16, para. 63(c)): applied to the right-of-use asset, 5 years out of 6 point that way. Professional judgement: the final conclusion takes all the indicators of the contract into account and is documented; the case gives only the term.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Compare the 5 years of sublease with the 40-year life of the building: operating lease","es":""},"correct":false,"feedback":{"fr":"","en":"This is the mistake to avoid: the reference is the right-of-use asset arising from the head lease, not the building (IFRS 16, para. B58(b)).","es":""}},{"id":"B","text":{"fr":"","en":"Compare the 5 years of sublease with the 6 remaining years of the right-of-use asset: the sublease covers the major part of it, an indicator of a finance lease","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No analysis: a sublease is always an operating lease for the intermediate lessor","es":""},"correct":false,"feedback":{"fr":"","en":"The automatic operating lease applies only if the head lease is an exempted short-term lease; an 8-year lease is not (IFRS 16, para. B58).","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Velmora may treat the head lease of the payment terminals (c) as a lease of low-value assets.","es":""},"explanation":{"fr":"","en":"False. A lessee that subleases an asset, or expects to sublease it, cannot treat the head lease as a lease of a low-value asset (IFRS 16, para. B7): Velmora therefore applies the lessee model to the terminals, then classifies the subleases to the franchisees by reference to the right-of-use asset (IFRS 16, para. B58(b)).","es":""},"common_error":{"fr":"","en":"Applying the low-value asset exemption on the unit price of the terminals alone, without seeing that the planned sublease rules it out.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000001","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000001","tested_point":"QST.IFRS16.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"objective"},"references":["IFRS 16 §1"],"exercise":{"prompt":{"fr":"","en":"IFRS 16 sets out principles intended for both lessees and lessors, not for lessees only.","es":""},"explanation":{"fr":"","en":"The standard addresses both parties to the contract: lessees and lessors must provide relevant information that faithfully represents their lease transactions (IFRS 16, para. 1).","es":""},"common_error":{"fr":"","en":"Believing that IFRS 16 deals only with lessee accounting.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000002","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000002","tested_point":"QST.IFRS16.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"objective"},"references":["IFRS 16 §1"],"exercise":{"prompt":{"fr":"","en":"IFRS 16 deals only with the recognition and measurement of leases; their presentation and disclosures are governed by other standards.","es":""},"explanation":{"fr":"","en":"The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases: all four aspects are covered by IFRS 16 (IFRS 16, para. 1).","es":""},"common_error":{"fr":"","en":"Limiting IFRS 16 to the lessee's statement of financial position.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000003","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000003","tested_point":"QST.IFRS16.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"objective"},"references":["IFRS 16 §1"],"exercise":{"prompt":{"fr":"","en":"According to its objective, the information produced under IFRS 16 must enable users of financial statements to assess the effect of leases on which aspects of the entity?","es":""},"explanation":{"fr":"","en":"The objective is relevant information that faithfully represents lease transactions and gives users a basis to assess the effect of leases on the financial position, financial performance and cash flows of the entity (IFRS 16, para. 1).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On its financial position only, since the standard aims first to bring obligations onto the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"The effect on financial position is targeted, but the objective also covers performance and cash flows.","es":""}},{"id":"B","text":{"fr":"","en":"On its taxable profit and on the amount of current tax for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The objective of the standard does not concern taxable profit; it targets financial statement information.","es":""}},{"id":"C","text":{"fr":"","en":"On its financial position, financial performance and cash flows.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"On the market value of its shares and on its market capitalisation.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not target the market value of the entity, but the effect of leases on its financial statements.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000004","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000004","tested_point":"QST.IFRS16.000004","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"objective"},"references":["IFRS 16 §2"],"exercise":{"prompt":{"fr":"","en":"Ardelis applies IFRS 16 to its leases. What must it rely on to apply the standard to a given contract?","es":""},"explanation":{"fr":"","en":"In applying the standard, the entity considers the terms and conditions of the contract and all relevant facts and circumstances; neither the title of the document nor the treatment adopted by the other party is sufficient (IFRS 16, para. 2).","es":""},"common_error":{"fr":"","en":"Relying on the name given to the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the legal title of the contract only, which by itself determines the accounting treatment.","es":""},"correct":false,"feedback":{"fr":"","en":"The title of the document is not enough: the analysis covers the terms and the facts and circumstances.","es":""}},{"id":"B","text":{"fr":"","en":"On the treatment adopted by the counterparty in its own financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"Each entity applies the standard on the basis of its own analysis, not on the other party's accounting.","es":""}},{"id":"C","text":{"fr":"","en":"On the financial terms of the contract only, excluding facts and circumstances.","es":""},"correct":false,"feedback":{"fr":"","en":"Relevant facts and circumstances are part of the analysis; they must not be set aside.","es":""}},{"id":"D","text":{"fr":"","en":"On the terms and conditions of the contract and on all relevant facts and circumstances.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000005","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000005","tested_point":"QST.IFRS16.000005","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"objective"},"references":["IFRS 16 §2"],"exercise":{"prompt":{"fr":"","en":"An entity applies IFRS 16 consistently to contracts with similar characteristics and in similar circumstances.","es":""},"explanation":{"fr":"","en":"The standard requires consistent application: contracts with similar characteristics, in similar circumstances, receive the same treatment (IFRS 16, para. 2).","es":""},"common_error":{"fr":"","en":"Thinking that each contract may be treated freely, without reference to comparable contracts.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000006","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000006","tested_point":"QST.IFRS16.000006","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"objective"},"references":["IFRS 16 §2"],"exercise":{"prompt":{"fr":"","en":"Tremora leases two identical warehouses, under identical terms, in the same logistics area. It may apply IFRS 16 differently to each of the two contracts if this improves its gearing ratio.","es":""},"explanation":{"fr":"","en":"Contracts with similar characteristics, entered into in similar circumstances, must be treated consistently; the aim of presenting a more favourable ratio does not justify a different treatment (IFRS 16, para. 2).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000007","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000007","tested_point":"QST.IFRS16.000007","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"objective"},"references":["IFRS 16 §1"],"exercise":{"prompt":{"fr":"","en":"For which aspects of the treatment of leases does IFRS 16 set out principles?","es":""},"explanation":{"fr":"","en":"IFRS 16 sets out principles for the recognition, measurement, presentation and disclosure of leases (IFRS 16, para. 1).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognition and measurement, the other aspects being left to the entity's choice.","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation and disclosure are also governed by the standard; they are not left to the entity's choice.","es":""}},{"id":"B","text":{"fr":"","en":"Measurement and the taxation of lease payments made or received.","es":""},"correct":false,"feedback":{"fr":"","en":"Taxation is not an aspect dealt with by IFRS 16; the standard covers recognition, measurement, presentation and disclosure.","es":""}},{"id":"C","text":{"fr":"","en":"Recognition, measurement, presentation and disclosure.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Presentation and disclosure, without any recognition or measurement principles.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard also sets out recognition and measurement principles, not only presentation principles.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000008","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000008","tested_point":"QST.IFRS16.000008","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"objective"},"references":["IFRS 16 §1"],"exercise":{"prompt":{"fr":"","en":"Which quality does the objective of IFRS 16 expect from the information provided by lessees and lessors about their leases?","es":""},"explanation":{"fr":"","en":"The objective is that lessees and lessors provide relevant information that faithfully represents their lease transactions, so that users can assess their effect (IFRS 16, para. 1).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Relevant information that faithfully represents lease transactions.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Prudent information that systematically adopts the lowest possible amount of obligation.","es":""},"correct":false,"feedback":{"fr":"","en":"Systematically adopting the lowest obligation does not give a faithful representation of the transactions.","es":""}},{"id":"C","text":{"fr":"","en":"Information aligned with the tax rules applicable to lease payments.","es":""},"correct":false,"feedback":{"fr":"","en":"The objective of the standard is not to reproduce tax rules.","es":""}},{"id":"D","text":{"fr":"","en":"Information based on legal form only, to ensure comparability.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal form alone does not ensure a faithful representation of lease transactions.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000009","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000009","tested_point":"QST.IFRS16.000009","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"IFRS 16 also applies to contracts under which a lessee subleases the right-of-use asset it holds.","es":""},"explanation":{"fr":"","en":"The standard applies to all leases, including leases of right-of-use assets in a sublease, subject to the limited exclusions it lists (IFRS 16, para. 3).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000010","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000010","tested_point":"QST.IFRS16.000010","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"Leases to explore for or use minerals, oil, natural gas or similar non-regenerative resources are excluded from the scope of IFRS 16.","es":""},"explanation":{"fr":"","en":"The standard excludes from its scope leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources (IFRS 16, para. 3).","es":""},"common_error":{"fr":"","en":"Confusing this exclusion with a general exclusion of the whole mining sector.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000011","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000011","tested_point":"QST.IFRS16.000011","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §4"],"exercise":{"prompt":{"fr":"","en":"A lessee is required to apply IFRS 16 to all leases of intangible assets other than those described in paragraph 3(e).","es":""},"explanation":{"fr":"","en":"For leases of intangible assets other than the licensed rights described in paragraph 3(e), IFRS 16 gives the lessee an option: it may apply the standard, but is not required to (IFRS 16, para. 4).","es":""},"common_error":{"fr":"","en":"Turning a lessee option into a requirement.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000012","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000012","tested_point":"QST.IFRS16.000012","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"Which of the following arrangements is excluded from the scope of IFRS 16?","es":""},"explanation":{"fr":"","en":"Service concession arrangements within the scope of IFRIC 12 are excluded from the scope of IFRS 16; the other contracts proposed are leases within the scope of the standard, subleases included (IFRS 16, para. 3).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A transport company's lease of a hangar used to maintain its vehicles.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease of a hangar is an ordinary lease, within the scope of the standard.","es":""}},{"id":"B","text":{"fr":"","en":"A lessee's sublease of an office floor to another company.","es":""},"correct":false,"feedback":{"fr":"","en":"Subleases are expressly included in the scope of IFRS 16.","es":""}},{"id":"C","text":{"fr":"","en":"A lease of identified computer servers for a period of four years.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease of identified servers does not belong to any of the excluded categories.","es":""}},{"id":"D","text":{"fr":"","en":"A service concession arrangement within the scope of IFRIC 12.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000013","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000013","tested_point":"QST.IFRS16.000013","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"Brevalis, owner of a patented process, grants a customer a licence to use that process for five years. Which standard does Brevalis apply to this licence?","es":""},"explanation":{"fr":"","en":"Licences of intellectual property granted by a lessor are within the scope of IFRS 15 and are excluded from the scope of IFRS 16 (IFRS 16, para. 3).","es":""},"common_error":{"fr":"","en":"Applying IFRS 16 to a licence of intellectual property granted by a lessor.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 15, because licences of intellectual property granted by a lessor are excluded from IFRS 16.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IFRS 16, because Brevalis makes an asset available to a customer for a period, like a lessor.","es":""},"correct":false,"feedback":{"fr":"","en":"The licence resembles a lease, but licences of intellectual property granted by a lessor are expressly excluded from IFRS 16.","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 16 by option, since the asset concerned is an intangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The option available for intangible assets concerns the lessee, not the licence granted by the lessor.","es":""}},{"id":"D","text":{"fr":"","en":"IAS 38, because the patented process is an intangible asset of Brevalis.","es":""},"correct":false,"feedback":{"fr":"","en":"The question concerns the licence granted to the customer; the standard refers it to IFRS 15, not to IAS 38.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000014","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000014","tested_point":"QST.IFRS16.000014","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3","IFRS 16 §4"],"exercise":{"prompt":{"fr":"","en":"The broadcaster Cinévia holds, under a licensing agreement within the scope of IAS 38, the right to broadcast a series of films for three years. How does this contract relate to IFRS 16?","es":""},"explanation":{"fr":"","en":"Rights held by a lessee under licensing agreements within the scope of IAS 38, for items such as motion picture films, video recordings, plays, manuscripts, patents and copyrights, are excluded from the scope of IFRS 16 (IFRS 16, para. 3). The option to apply IFRS 16 to intangible assets covers only assets other than those (IFRS 16, para. 4).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is excluded from IFRS 16: rights held by a lessee under licensing agreements within the scope of IAS 38, such as films, are excluded from the scope.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It must be accounted for under IFRS 16, because Cinévia uses a third party's asset for a period in exchange for consideration.","es":""},"correct":false,"feedback":{"fr":"","en":"Even if the contract resembles a lease, this category of licensed rights is expressly excluded.","es":""}},{"id":"C","text":{"fr":"","en":"It falls within IFRS 15, because it is a licence of intellectual property.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 15 covers licences granted by the lessor; Cinévia holds the licence, it does not grant it.","es":""}},{"id":"D","text":{"fr":"","en":"Cinévia may choose to apply IFRS 16, as for any lease of an intangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The option in paragraph 4 specifically excludes the rights described in paragraph 3(e), which include films.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000015","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000015","tested_point":"QST.IFRS16.000015","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"Which of the following contracts are excluded from the scope of IFRS 16? (several answers)","es":""},"explanation":{"fr":"","en":"The standard excludes, among others, service concession arrangements within the scope of IFRIC 12, leases of biological assets within the scope of IAS 41 held by a lessee and licences of intellectual property granted by a lessor within the scope of IFRS 15. The lease of offices and that of a machine remain within the scope (IFRS 16, para. 3).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A law firm's lease of its offices for a period of nine years.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease of offices is an ordinary lease, within the scope of the standard.","es":""}},{"id":"B","text":{"fr":"","en":"A service concession arrangement within the scope of IFRIC 12.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A lessee's lease of biological assets within the scope of IAS 41.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A furniture manufacturer's lease of a production machine.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease of a production machine does not belong to any excluded category.","es":""}},{"id":"E","text":{"fr":"","en":"A licence of intellectual property granted by a lessor within the scope of IFRS 15.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000016","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000016","tested_point":"QST.IFRS16.000016","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":65,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §4"],"exercise":{"prompt":{"fr":"","en":"Cobalis leases, as lessee, an intangible asset that does not fall within the categories of paragraph 3(e) (licensed rights within the scope of IAS 38 such as films, patents or copyrights). Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"For leases of intangible assets other than those described in paragraph 3(e), the lessee may apply IFRS 16 but is not required to (IFRS 16, para. 4).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Cobalis is required to apply IFRS 16 to this contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Paragraph 4 imposes nothing: it gives the lessee an option.","es":""}},{"id":"B","text":{"fr":"","en":"Cobalis may apply IFRS 16 to this contract.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 16 prohibits Cobalis from applying the standard to any lease of an intangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion concerns only the rights in paragraph 3(e); for other intangible assets, application is permitted.","es":""}},{"id":"D","text":{"fr":"","en":"For this contract, applying IFRS 16 is an option and not a requirement.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000017","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000017","tested_point":"QST.IFRS16.000017","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"Pressilux leases identified industrial presses to its customers for periods of three to five years. It also grants one of these customers a licence to use its patented surface-treatment process. How does Pressilux analyse these two arrangements with regard to the scope of IFRS 16?","es":""},"explanation":{"fr":"","en":"The leases of identified presses are leases within the scope of the standard. By contrast, licences of intellectual property granted by a lessor fall within IFRS 15 and are excluded from IFRS 16 (IFRS 16, para. 3).","es":""},"common_error":{"fr":"","en":"Treating any provision of an asset by a lessor as a lease under IFRS 16.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both arrangements fall within IFRS 16, because Pressilux acts each time as lessor of an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Granting a licence of intellectual property is not treated as a lease: this situation is excluded from the scope of IFRS 16.","es":""}},{"id":"B","text":{"fr":"","en":"Both arrangements fall within IFRS 15, because in both cases Pressilux sells a service to its customers.","es":""},"correct":false,"feedback":{"fr":"","en":"The leases of presses are leases within the scope of IFRS 16, not sales of services.","es":""}},{"id":"C","text":{"fr":"","en":"The licence falls within IFRS 16 and the leases of presses within IFRS 15, because only licences are rights of use.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: the licence granted falls within IFRS 15 and the leases of presses within IFRS 16.","es":""}},{"id":"D","text":{"fr":"","en":"The leases of presses fall within IFRS 16; the licence of intellectual property falls within IFRS 15.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000018","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000018","tested_point":"QST.IFRS16.000018","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"The dairy cooperative Verdal leases, for four years, a herd of dairy cows (biological assets within the scope of IAS 41) and, for ten years, the barn that houses it. It wonders which contracts fall within the scope of IFRS 16 as lessee.","es":""},"explanation":{"fr":"","en":"Leases of biological assets within the scope of IAS 41 held by a lessee are excluded from the scope of IFRS 16; the lease of the barn, an ordinary farm building, remains a lease within the scope of the standard (IFRS 16, para. 3).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Neither, because agricultural activity is entirely excluded from IFRS 16.","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion concerns biological assets held by a lessee, not all the contracts of an agricultural entity.","es":""}},{"id":"B","text":{"fr":"","en":"Both, because Verdal controls the use of the cows as well as that of the barn.","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion of biological assets held by a lessee applies whatever the way the asset is used.","es":""}},{"id":"C","text":{"fr":"","en":"The barn falls within IFRS 16; the lease of the herd is excluded from it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The herd falls within IFRS 16; the barn is excluded because it is used for biological assets.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: the herd is excluded; the barn, a leased building, remains within the scope.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000019","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000019","tested_point":"QST.IFRS16.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":95,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3","IFRS 16 §4"],"exercise":{"prompt":{"fr":"","en":"The studio Altamar leases an identified screening room for six years. It also holds, under a licensing agreement within the scope of IAS 38, exploitation rights to a feature film. Its finance director proposes applying IFRS 16 to both contracts, relying on the option available for intangible assets. Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"Rights held by a lessee under licensing agreements within the scope of IAS 38, in particular for films, are excluded from the scope (IFRS 16, para. 3). The option to apply IFRS 16 concerns only intangible assets other than those in paragraph 3(e) (IFRS 16, para. 4). The screening room is an ordinary lease within the scope of the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is acceptable: the option to apply IFRS 16 covers all intangible assets, films included.","es":""},"correct":false,"feedback":{"fr":"","en":"The option in paragraph 4 specifically excludes the rights in paragraph 3(e), which include films.","es":""}},{"id":"B","text":{"fr":"","en":"Neither contract falls within IFRS 16, because the film industry is excluded from the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not exclude an industry: the lease of the room remains within its scope.","es":""}},{"id":"C","text":{"fr":"","en":"The room falls within IFRS 16; the rights to the film are excluded and the option is not available for them.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The rights to the film must be accounted for under IFRS 16; only the room may be excluded by option.","es":""},"correct":false,"feedback":{"fr":"","en":"The rights to the film are excluded, and the lease of the room is not optional.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000020","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000020","tested_point":"QST.IFRS16.000020","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000001","section_id":"scope-rule"},"references":["IFRS 16 §3"],"exercise":{"prompt":{"fr":"","en":"Norvelis reviews the contracts it has entered into. Which of them fall within the scope of IFRS 16? (several answers)","es":""},"explanation":{"fr":"","en":"The lease of the van and the sublease of the office floor are leases within the scope of the standard; licences within the scope of IAS 38 held by a lessee, biological assets within the scope of IAS 41 held by a lessee and contracts to explore for natural gas are excluded (IFRS 16, para. 3).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A licence within the scope of IAS 38 allowing it to use a patent held by a third party.","es":""},"correct":false,"feedback":{"fr":"","en":"Licensed rights within the scope of IAS 38 held by a lessee, such as a patent, are excluded.","es":""}},{"id":"B","text":{"fr":"","en":"The lease of an identified delivery van for three years.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The lease, as lessee, of breeding livestock within the scope of IAS 41.","es":""},"correct":false,"feedback":{"fr":"","en":"Leases of biological assets within the scope of IAS 41 by a lessee are excluded.","es":""}},{"id":"D","text":{"fr":"","en":"The sublease to another company of an office floor that Norvelis itself leases.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A contract allowing it to explore a natural gas field.","es":""},"correct":false,"feedback":{"fr":"","en":"Contracts to explore for natural gas are excluded from the scope.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000021","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000021","tested_point":"QST.IFRS16.000021","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §5"],"exercise":{"prompt":{"fr":"","en":"For a short-term lease, a lessee may elect to recognise neither a right-of-use asset nor a lease liability.","es":""},"explanation":{"fr":"","en":"The lessee may elect not to apply paragraphs 22 to 49, which govern in particular the recognition of the right-of-use asset and the lease liability, to short-term leases and to leases for which the underlying asset is of low value (IFRS 16, para. 5).","es":""},"common_error":{"fr":"","en":"Believing that the exemption is mandatory or that it exists only for low-value assets.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000022","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000022","tested_point":"QST.IFRS16.000022","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §8"],"exercise":{"prompt":{"fr":"","en":"The election to apply the short-term lease exemption is made lease by lease, on a case-by-case basis.","es":""},"explanation":{"fr":"","en":"For short-term leases, the election is made by class of underlying asset, that is, by grouping of assets of a similar nature and use in the entity's operations; only the low-value election may be made lease by lease (IFRS 16, para. 8).","es":""},"common_error":{"fr":"","en":"Applying to short-term leases the lease-by-lease election reserved for low-value assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000023","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS","IFRS16.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000023","tested_point":"QST.IFRS16.000023","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16","IFRS 16 §5"],"exercise":{"prompt":{"fr":"","en":"Fixalis leases a machine for a period of 12 months; the contract gives it an option to purchase the machine at the end. This lease can be treated as a short-term lease.","es":""},"explanation":{"fr":"","en":"A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less and contains no purchase option (IFRS 16, Appendix A). A lease with a purchase option therefore cannot benefit from the short-term lease exemption (IFRS 16, para. 5).","es":""},"common_error":{"fr":"","en":"Stopping at the term criterion without examining the purchase option.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000024","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000024","tested_point":"QST.IFRS16.000024","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §6"],"exercise":{"prompt":{"fr":"","en":"How does a lessee that applies the exemption to a short-term lease account for the related lease payments?","es":""},"explanation":{"fr":"","en":"When the exemption is applied, the lessee recognises the lease payments as an expense on a straight-line basis over the lease term or on another systematic basis when that basis better reflects the pattern of the lessee's benefit (IFRS 16, para. 6).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an expense, on a straight-line basis over the lease term, or on another systematic basis if that basis better reflects the pattern of the lessee's benefit.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It still recognises a right-of-use asset, depreciated over the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption precisely removes the need to recognise a right-of-use asset and a lease liability.","es":""}},{"id":"C","text":{"fr":"","en":"As an expense when the cash is paid, whatever the pattern in which benefits are consumed.","es":""},"correct":false,"feedback":{"fr":"","en":"The pattern of cash payments is not the reference: the expense is spread on a straight-line or systematic basis.","es":""}},{"id":"D","text":{"fr":"","en":"As an expense, in full, at the commencement date of the lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense is spread over the lease term; it is not recognised all at once at the commencement date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000025","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000025","tested_point":"QST.IFRS16.000025","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B3","IFRS 16 §B4"],"exercise":{"prompt":{"fr":"","en":"On what basis does a lessee assess whether the underlying asset of a lease is of low value?","es":""},"explanation":{"fr":"","en":"Low value is assessed on the basis of the value of the asset when new, regardless of the age of the asset being leased (IFRS 16, para. B3). The assessment is absolute: it depends neither on the size nor on the circumstances of the lessee, and the exemption is available whether or not the leases are material to the lessee (IFRS 16, para. B4).","es":""},"common_error":{"fr":"","en":"Using the carrying amount or the current value of a used asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the current value of the asset, taking into account its age and wear at the date of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"A cheap used asset is not of low value if its value when new is not.","es":""}},{"id":"B","text":{"fr":"","en":"On the value of the asset when new, regardless of its actual age.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On the materiality of the lease to the lessee's financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"The materiality of the lease to the lessee plays no part in the assessment.","es":""}},{"id":"D","text":{"fr":"","en":"On the undiscounted total of the lease payments due over the whole lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard reasons on the value of the asset when new, not on the total lease payments.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000026","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000026","tested_point":"QST.IFRS16.000026","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §8"],"exercise":{"prompt":{"fr":"","en":"Transalis wants to apply the two optional lessee exemptions. At what level is each election made?","es":""},"explanation":{"fr":"","en":"The short-term lease election is made by class of underlying asset (assets of a similar nature and use in the entity's operations), while the low-value election may be made lease by lease (IFRS 16, para. 8).","es":""},"common_error":{"fr":"","en":"Reversing the levels of election of the two exemptions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both elections are made by class of underlying asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The low-value election may be made lease by lease; it is not tied to a class.","es":""}},{"id":"B","text":{"fr":"","en":"Both elections are made lease by lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The short-term lease election is made by class of underlying asset.","es":""}},{"id":"C","text":{"fr":"","en":"Lease by lease for short-term leases; by class of underlying asset for low-value assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The levels are reversed: re-read which exemption each level of election applies to.","es":""}},{"id":"D","text":{"fr":"","en":"By class of underlying asset for short-term leases; lease by lease for low-value assets.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000027","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000027","tested_point":"QST.IFRS16.000027","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B3","IFRS 16 §B4","IFRS 16 §B5"],"exercise":{"prompt":{"fr":"","en":"To conclude that an underlying asset is of low value, which factors must a lessee take into account? (several answers)","es":""},"explanation":{"fr":"","en":"Low value is assessed on the value of the asset when new (IFRS 16, para. B3), on an absolute basis, regardless of the size or circumstances of the lessee and of the materiality of the lease (IFRS 16, para. B4). The asset must also be able to benefit the lessee on its own or together with readily available resources, and must not be highly dependent on, or highly interrelated with, other assets (IFRS 16, para. B5).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The value of the asset when new.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Whether or not the lease is material to the lessee.","es":""},"correct":false,"feedback":{"fr":"","en":"The materiality of the lease to the lessee plays no part: the exemption is available whether or not the lease is material.","es":""}},{"id":"C","text":{"fr":"","en":"Whether the lessee can benefit from the asset on its own or together with other readily available resources.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The size of the lessee and the amount of its total assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment is absolute: the size of the lessee has no effect.","es":""}},{"id":"E","text":{"fr":"","en":"The absence of high dependence on, or high interrelation with, other assets.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000028","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000028","tested_point":"QST.IFRS16.000028","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B8","IFRS 16 §B6"],"exercise":{"prompt":{"fr":"","en":"Which of the following assets, taken when new, does the standard cite as possible examples of low-value assets? (several answers)","es":""},"explanation":{"fr":"","en":"The standard cites as possible examples of low-value assets tablets and personal computers, small items of office furniture and telephones (IFRS 16, para. B8). An asset that, by its nature, is typically not of low value when new, such as a car, cannot qualify for the exemption (IFRS 16, para. B6); the same applies, a fortiori, to a building.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A tablet.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A car.","es":""},"correct":false,"feedback":{"fr":"","en":"A car is typically not of low value when new; the standard expressly excludes it.","es":""}},{"id":"C","text":{"fr":"","en":"A small item of office furniture.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A telephone.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"An office building.","es":""},"correct":false,"feedback":{"fr":"","en":"A building is not, by nature, an asset of low value when new.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000029","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS","IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000101","tested_point":"VG.IFRS16.000101","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §6","IFRS 16 §B36"],"exercise":{"prompt":{"fr":"","en":"Chantiers Orbel leases a site hut for a lease term of {lease_term_months} months from 1 April 20X1, with no purchase option. It applies the short-term lease exemption to this class of assets. The lessor grants a rent-free period for the first {free_months} months; afterwards, Orbel pays {monthly_payment} at the end of each month until the end of the lease. Compute the lease expense for the year ended 31 December 20X1, recognised on a straight-line basis.","es":""},"explanation":{"fr":"","en":"The exempt lessee recognises the lease payments as an expense on a straight-line basis over the lease term (IFRS 16, para. 6), and the lease term includes the rent-free period (IFRS 16, para. B36). Total payments: (12 − 2) × 3,600 = 10 × 3,600 = 36,000. Monthly expense: 36,000 / 12 = 3,000. Expense for 20X1 (April to December, 9 months): 9 × 3,000 = 27,000. Payments made in 20X1 (June to December) amount to 7 × 3,600 = 25,200; the difference of 1,800 is an accrued expense.","es":""},"common_error":{"fr":"","en":"Expensing only the payments made (25,200).","es":""},"format":"CALCULATION","placeholders":[{"id":"lease_term_months","value":"12","unit":"MONTHS"},{"id":"free_months","value":"2","unit":"MONTHS"},{"id":"monthly_payment","value":"3600","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lease term (months)","es":""},"value":"12","unit":"MONTHS"},{"label":{"fr":"","en":"Rent-free months","es":""},"value":"2","unit":"MONTHS"},{"label":{"fr":"","en":"Monthly payment made at the end of the month after the rent-free period","es":""},"value":"3600","unit":"EUR"}],"steps":[{"id":"EXPENSE_20X1","label":{"fr":"","en":"Lease expense for 20X1","es":""},"answer":27000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPENSE_20X1","meaning":{"fr":"","en":"Lease expense for 20X1","es":""},"expression":"9 * (((a - b) * c) / a)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease term (months)","es":""},"value":12,"unit":"MONTHS"},{"symbol":"b","meaning":{"fr":"","en":"Rent-free months","es":""},"value":2,"unit":"MONTHS"},{"symbol":"c","meaning":{"fr":"","en":"Monthly payment made at the end of the month after the rent-free period","es":""},"value":3600,"unit":"EUR"}],"result":27000,"unit":"EUR"}],"rationale":{"fr":"","en":"The exempt lessee recognises the lease payments as an expense on a straight-line basis over the lease term (IFRS 16, para. 6), and the lease term includes the rent-free period (IFRS 16, para. B36).","es":""},"references":["REF.IFRS16.6","REF.IFRS16.B36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000030","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS","IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000101","tested_point":"VG.IFRS16.000101","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §6","IFRS 16 §B36"],"exercise":{"prompt":{"fr":"","en":"The events organiser Festivia leases a marquee structure for {lease_term_months} months from 1 September 20X1, with no purchase option; it applies the short-term lease exemption to this class of assets. The first month is rent-free ({free_months} month), then Festivia pays {monthly_payment} in arrears, at the end of each following month. The reporting period ends on 31 December 20X1. Determine the lease expense for 20X1 and the accrued expense in the statement of financial position at that date.","es":""},"explanation":{"fr":"","en":"The lease payments of an exempt lease are recognised as an expense on a straight-line basis over the lease term (IFRS 16, para. 6), rent-free period included (IFRS 16, para. B36). Total payments: (10 − 1) × 5,000 = 45,000; monthly expense: 45,000 / 10 = 4,500. Expense for 20X1 (September to December, 4 months): 4 × 4,500 = 18,000. Payments made in 20X1 (end of October, November and December): 3 × 5,000 = 15,000. Accrued expense: 18,000 − 15,000 = 3,000.","es":""},"common_error":{"fr":"","en":"Taking the payments made (15,000) as the expense.","es":""},"format":"CALCULATION","placeholders":[{"id":"lease_term_months","value":"10","unit":"MONTHS"},{"id":"free_months","value":"1","unit":"MONTHS"},{"id":"monthly_payment","value":"5000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lease term (months)","es":""},"value":"10","unit":"MONTHS"},{"label":{"fr":"","en":"Rent-free months","es":""},"value":"1","unit":"MONTHS"},{"label":{"fr":"","en":"Monthly payment in arrears after the rent-free period","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"EXPENSE_20X1","label":{"fr":"","en":"Lease expense for 20X1","es":""},"answer":18000,"tolerance":0,"unit":"EUR"},{"id":"ACCRUED_EXPENSE","label":{"fr":"","en":"Accrued expense at 31 December 20X1","es":""},"answer":3000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ACCRUED_EXPENSE","meaning":{"fr":"","en":"Accrued expense at 31 December 20X1","es":""},"expression":"a - (3 * b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease expense for 20X1","es":""},"value":18000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Monthly payment in arrears after the rent-free period","es":""},"value":5000,"unit":"EUR"}],"result":3000,"unit":"EUR"}],"rationale":{"fr":"","en":"The lease payments of an exempt lease are recognised as an expense on a straight-line basis over the lease term (IFRS 16, para. 6), rent-free period included (IFRS 16, para. B36).","es":""},"references":["REF.IFRS16.6","REF.IFRS16.B36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000031","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000102","tested_point":"VG.IFRS16.000102","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §6","IFRS 16 §8"],"exercise":{"prompt":{"fr":"","en":"The design studio Graphix leases 25 tablets for {lease_term_months} months from 1 March 20X1. After analysis, each tablet is a low-value asset (case datum) and Graphix elects the exemption for this lease. The total payment, payable in advance at the beginning of each month, is {payment_year1} per month in the first year and then {payment_year2} per month in the second year. No other systematic basis is more representative than the straight-line basis. Compute the lease expense for the year ended 31 December 20X1 and the accrued expense at that date.","es":""},"explanation":{"fr":"","en":"The low-value exemption may be elected lease by lease (IFRS 16, para. 8); the lease payments are then recognised as an expense on a straight-line basis over the lease term (IFRS 16, para. 6). Total payments: 12 × 300 + 12 × 360 = 3,600 + 4,320 = 7,920; monthly expense: 7,920 / 24 = 330. Expense for 20X1 (March to December, 10 months): 10 × 330 = 3,300. Payments made in advance in 20X1: 10 × 300 = 3,000. Accrued expense: 3,300 − 3,000 = 300.","es":""},"common_error":{"fr":"","en":"Taking the payments made in the period (3,000) as the expense.","es":""},"format":"CALCULATION","placeholders":[{"id":"lease_term_months","value":"24","unit":"MONTHS"},{"id":"payment_year1","value":"300","unit":"EUR"},{"id":"payment_year2","value":"360","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lease term (months)","es":""},"value":"24","unit":"MONTHS"},{"label":{"fr":"","en":"Total monthly payment in the first year","es":""},"value":"300","unit":"EUR"},{"label":{"fr":"","en":"Total monthly payment in the second year","es":""},"value":"360","unit":"EUR"}],"steps":[{"id":"EXPENSE_20X1","label":{"fr":"","en":"Lease expense for 20X1","es":""},"answer":3300,"tolerance":0,"unit":"EUR"},{"id":"ACCRUED_EXPENSE","label":{"fr":"","en":"Accrued expense at 31 December 20X1","es":""},"answer":300,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ACCRUED_EXPENSE","meaning":{"fr":"","en":"Accrued expense at 31 December 20X1","es":""},"expression":"a - (10 * b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease expense for 20X1","es":""},"value":3300,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total monthly payment in the first year","es":""},"value":300,"unit":"EUR"}],"result":300,"unit":"EUR"}],"references":["REF.IFRS16.6","REF.IFRS16.8"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000032","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000102","tested_point":"VG.IFRS16.000102","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §6","IFRS 16 §8"],"exercise":{"prompt":{"fr":"","en":"The firm Bureaulis leases office chairs for {lease_term_months} months from 1 July 20X1. Each chair is a small item of furniture whose value when new is low (case datum); Bureaulis applies the low-value exemption to this lease. Payments are made in advance on 1 July each year: {payment_y1} in the first year, {payment_y2} in the second and {payment_y3} in the third. No other systematic basis is more representative. Determine the lease expense for 20X1 (year ended 31 December) and the prepaid expense at that date.","es":""},"explanation":{"fr":"","en":"With the exemption elected for this lease (IFRS 16, para. 8), the lease payments are recognised as an expense on a straight-line basis over the lease term (IFRS 16, para. 6). Total payments: 1,800 + 2,100 + 2,400 = 6,300; monthly expense: 6,300 / 36 = 175. Expense for 20X1 (July to December, 6 months): 6 × 175 = 1,050. Payment made on 1 July 20X1: 1,800. Prepaid expense: 1,800 − 1,050 = 750.","es":""},"common_error":{"fr":"","en":"Taking half of the first annual payment (900) as the expense, without smoothing the increase.","es":""},"format":"CALCULATION","placeholders":[{"id":"lease_term_months","value":"36","unit":"MONTHS"},{"id":"payment_y1","value":"1800","unit":"EUR"},{"id":"payment_y2","value":"2100","unit":"EUR"},{"id":"payment_y3","value":"2400","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lease term (months)","es":""},"value":"36","unit":"MONTHS"},{"label":{"fr":"","en":"Annual payment in advance, year 1","es":""},"value":"1800","unit":"EUR"},{"label":{"fr":"","en":"Annual payment in advance, year 2","es":""},"value":"2100","unit":"EUR"},{"label":{"fr":"","en":"Annual payment in advance, year 3","es":""},"value":"2400","unit":"EUR"}],"steps":[{"id":"EXPENSE_20X1","label":{"fr":"","en":"Lease expense for 20X1","es":""},"answer":1050,"tolerance":0,"unit":"EUR"},{"id":"PREPAID_EXPENSE","label":{"fr":"","en":"Prepaid expense at 31 December 20X1","es":""},"answer":750,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PREPAID_EXPENSE","meaning":{"fr":"","en":"Prepaid expense at 31 December 20X1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment in advance, year 1","es":""},"value":1800,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease expense for 20X1","es":""},"value":1050,"unit":"EUR"}],"result":750,"unit":"EUR"}],"rationale":{"fr":"","en":"With the exemption elected for this lease (IFRS 16, para. 8), the lease payments are recognised as an expense on a straight-line basis over the lease term (IFRS 16, para. 6).","es":""},"references":["REF.IFRS16.6","REF.IFRS16.8"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000033","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000101","tested_point":"VG.IFRS16.000101","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §6"],"exercise":{"prompt":{"fr":"","en":"Stockalia leases a storage container for {lease_term_months} months from 1 November 20X1, with no purchase option, and applies the short-term lease exemption to this class of assets. It pays {quarterly_payment} in advance at the beginning of each quarter, that is on 1 November 20X1 and 1 February 20X2. Compute the lease expense for the year ended 31 December 20X1.","es":""},"explanation":{"fr":"","en":"The lease payments of an exempt lease are recognised as an expense on a straight-line basis over the lease term, regardless of the payment dates (IFRS 16, para. 6). Total payments: 2 × 9,000 = 18,000; monthly expense: 18,000 / 6 = 3,000. Expense for 20X1 (November and December, 2 months): 2 × 3,000 = 6,000. The payment of 1 November 20X1 (9,000) also covers January 20X2: 3,000 is a prepaid expense.","es":""},"common_error":{"fr":"","en":"Expensing the whole advance payment of 9,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"lease_term_months","value":"6","unit":"MONTHS"},{"id":"quarterly_payment","value":"9000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lease term (months)","es":""},"value":"6","unit":"MONTHS"},{"label":{"fr":"","en":"Quarterly payment in advance","es":""},"value":"9000","unit":"EUR"}],"steps":[{"id":"EXPENSE_20X1","label":{"fr":"","en":"Lease expense for 20X1","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPENSE_20X1","meaning":{"fr":"","en":"Lease expense for 20X1","es":""},"expression":"2 * ((2 * a) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Quarterly payment in advance","es":""},"value":9000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease term (months)","es":""},"value":6,"unit":"MONTHS"}],"result":6000,"unit":"EUR"}],"rationale":{"fr":"","en":"The lease payments of an exempt lease are recognised as an expense on a straight-line basis over the lease term, regardless of the payment dates (IFRS 16, para. 6).","es":""},"references":["REF.IFRS16.6"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000034","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000034","tested_point":"QST.IFRS16.000034","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B4","IFRS 16 §B3"],"exercise":{"prompt":{"fr":"","en":"The GrandPort group, with several thousand employees, and the young company Pixelia, with 3 employees, each lease a new laptop of the same model for three years. GrandPort treats its lease as relating to a low-value asset, and this analysis of the asset is considered correct. Pixelia's finance director considers that, for such a small entity, the lease payment is material and that the laptop therefore cannot be a low-value asset for Pixelia. Which conclusion should be adopted?","es":""},"explanation":{"fr":"","en":"The low-value assessment is made on an absolute basis: it depends neither on the size, nor on the nature, nor on the circumstances of the lessee, and the exemption is available whether or not the lease is material to the lessee. Different lessees are therefore expected to reach the same conclusion for the same asset (IFRS 16, para. B4), assessed when new (IFRS 16, para. B3). Pixelia may therefore elect the exemption, like GrandPort.","es":""},"common_error":{"fr":"","en":"Assessing low value against the materiality of the lease to the lessee.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Pixelia is right: a lease that is material to the lessee cannot relate to a low-value asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The materiality of the lease to the lessee has no effect on the low-value qualification.","es":""}},{"id":"B","text":{"fr":"","en":"The assessment is absolute: the same asset leads to the same conclusion for both lessees, and Pixelia may apply the exemption.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Each lessee sets its own low-value threshold according to its size; the two conclusions can coexist.","es":""},"correct":false,"feedback":{"fr":"","en":"A threshold specific to each lessee would contradict the requirement of the same conclusion for the same asset.","es":""}},{"id":"D","text":{"fr":"","en":"Pixelia must apply the exemption, because it is mandatory once the asset is of low value.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption is a lessee election, not a requirement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000035","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000035","tested_point":"QST.IFRS16.000035","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B3","IFRS 16 §B6"],"exercise":{"prompt":{"fr":"","en":"Rivéo leases, for two years, a nine-year-old car whose current value is estimated at 2,500. An equivalent model is worth 28,000 when new. The contract contains no purchase option. The accountant proposes applying the low-value exemption. Which analysis is correct?","es":""},"explanation":{"fr":"","en":"Low value is assessed on the basis of the asset when new, regardless of the age of the asset being leased (IFRS 16, para. B3). An asset that, by its nature, is typically not of low value when new cannot qualify, the standard citing the example of cars (IFRS 16, para. B6). The age and current value of the car therefore have no effect.","es":""},"common_error":{"fr":"","en":"Using the value of a used asset to assess low value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The exemption does not apply: low value is assessed when new, and a car is typically not of low value when new.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The exemption applies, because the current value of the car is low.","es":""},"correct":false,"feedback":{"fr":"","en":"The current value of a used asset is not the reference: only the value when new matters.","es":""}},{"id":"C","text":{"fr":"","en":"The exemption applies, because the lease is not material to Rivéo.","es":""},"correct":false,"feedback":{"fr":"","en":"The materiality of the lease plays no part in the low-value assessment.","es":""}},{"id":"D","text":{"fr":"","en":"The exemption does not apply, because it is reserved for leases with a term of 12 months or less.","es":""},"correct":false,"feedback":{"fr":"","en":"The 12-month term relates to the short-term lease exemption, not to the low-value exemption.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000036","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000036","tested_point":"QST.IFRS16.000036","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B7","IFRS 16 §8"],"exercise":{"prompt":{"fr":"","en":"Cowelia, which operates a coworking space, leases 40 laptops for three years; each laptop, when new, would meet the criteria of a low-value asset. Cowelia plans to sublease these laptops to the members of its space. It wishes to apply the low-value exemption to the head lease. Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"When the lessee subleases the asset or expects to sublease it, the head lease does not qualify as a lease of a low-value asset (IFRS 16, para. B7). The possibility of electing the exemption lease by lease (IFRS 16, para. 8) does not lift this prohibition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The exemption applies, since each laptop is of low value when new.","es":""},"correct":false,"feedback":{"fr":"","en":"The value when new is not enough when the lessee plans a sublease.","es":""}},{"id":"B","text":{"fr":"","en":"The exemption applies provided that the sublease income is not material.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no materiality threshold: the intention to sublease is enough to rule out the exemption.","es":""}},{"id":"C","text":{"fr":"","en":"The exemption applies, because the low-value election may be made lease by lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease-by-lease election does not make it possible to circumvent the sublease exclusion.","es":""}},{"id":"D","text":{"fr":"","en":"The exemption is ruled out: a head lease cannot relate to a low-value asset when the lessee subleases the asset or expects to sublease it.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000037","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS","IFRS16.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000037","tested_point":"QST.IFRS16.000037","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16","IFRS 16 §5"],"exercise":{"prompt":{"fr":"","en":"The accountant of Plieuse & Co analyses the lease of an industrial folding machine: (1) the lease term, at the commencement date, is 11 months; (2) the production machinery class is covered by the short-term lease election; (3) the contract contains an option to purchase the machine at the end, but a term of 11 months is enough to qualify it as a short-term lease; (4) the payments are therefore recognised as an expense on a straight-line basis. Which step contains the error?","es":""},"explanation":{"fr":"","en":"A short-term lease has a lease term of 12 months or less at the commencement date and contains no purchase option (IFRS 16, Appendix A). The purchase option therefore prevents the application of the short-term lease exemption (IFRS 16, para. 5): the conclusion of step 3, and therefore step 4 which follows from it, are wrong.","es":""},"common_error":{"fr":"","en":"Qualifying a lease as short-term on the term criterion alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: the term must be assessed at the inception date of the lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The term is indeed assessed at the commencement date; step 1 is correct.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: the short-term lease election must be made lease by lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The short-term lease election is made by class of underlying asset; step 2 is correct.","es":""}},{"id":"C","text":{"fr":"","en":"Step 3: a lease containing a purchase option is not a short-term lease.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Step 4: an exempt lease must be expensed as the payments are made.","es":""},"correct":false,"feedback":{"fr":"","en":"Step 4 follows from a wrong qualification; in itself, the straight-line basis is indeed the rule for exempt leases.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000038","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000038","tested_point":"QST.IFRS16.000038","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B5","IFRS 16 §8"],"exercise":{"prompt":{"fr":"","en":"Optiflux leases 120 sensors for four years, each with a modest price when new. These sensors work only once integrated into a measurement line that Optiflux also leases; they are highly interrelated with each other and with that line. Analysis by the management controller: (1) each sensor, taken individually, has a modest price when new; (2) the low-value election may be made lease by lease; (3) it does not matter that the sensors can only work when integrated into the line: the exemption applies; (4) the payments for the sensors are recognised as an expense on a straight-line basis. Which step contains the error?","es":""},"explanation":{"fr":"","en":"An asset can be of low value only if the lessee can benefit from it on its own or together with other readily available resources, and if it is neither highly dependent on, nor highly interrelated with, other assets (IFRS 16, para. B5). The sensors, which only work once integrated into the line, do not meet these conditions: step 3 is wrong, and step 4 does not arise. The lease-by-lease election (IFRS 16, para. 8) does not change this condition.","es":""},"common_error":{"fr":"","en":"Stopping at the unit price without examining the asset's dependence on other assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: the price of a sensor must be assessed on its current value and not when new.","es":""},"correct":false,"feedback":{"fr":"","en":"Low value is indeed assessed when new; step 1 is correct.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: the low-value election is made by class of underlying asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The low-value election may be made lease by lease; step 2 is correct.","es":""}},{"id":"C","text":{"fr":"","en":"Step 3: an asset that is highly dependent on, or highly interrelated with, other assets cannot be of low value.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Step 4: the payments of an exempt lease are recognised as an expense when paid.","es":""},"correct":false,"feedback":{"fr":"","en":"Step 4 follows from the error in step 3; the straight-line basis itself is indeed the rule for exempt leases.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000039","standard_id":"IFRS16","concept_ids":["IFRS16.SCOPE.EXEMPTIONS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000039","tested_point":"QST.IFRS16.000039","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §7"],"exercise":{"prompt":{"fr":"","en":"Fitralis leases a forklift for 9 months, with no purchase option, and applies the short-term lease exemption to this class of assets. After 7 months, it agrees with the lessor to extend the lease by 4 months. Accountant's analysis: (1) the original lease was indeed a short-term lease; (2) the extension changes the lease term; (3) since the total term reaches 13 months, the original lease must be restated from its commencement date, with a right-of-use asset and a lease liability recognised at that date; (4) the payments already expensed are reversed. Which step contains the fundamental error?","es":""},"explanation":{"fr":"","en":"When a lessee that applies the exemption to a short-term lease modifies that lease or changes its term, it considers the lease to be a new lease (IFRS 16, para. 7). The original lease is therefore not restated from its commencement date: step 3 is wrong and step 4 follows from it. The new lease is then analysed like any new lease.","es":""},"common_error":{"fr":"","en":"Adding the original term and the extension and restating the lease retrospectively.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: a 9-month lease cannot benefit from the short-term lease exemption.","es":""},"correct":false,"feedback":{"fr":"","en":"A term of 9 months with no purchase option allows the exemption; step 1 is correct.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: a negotiated extension does not change the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"The extension does change the lease term; step 2 is correct.","es":""}},{"id":"C","text":{"fr":"","en":"Step 3: when there is a modification or a change in the lease term, the lessee considers the lease to be a new lease, without restating the original lease.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Step 4: only the payments for the 4 months of extension must be reversed.","es":""},"correct":false,"feedback":{"fr":"","en":"Step 4 rests on the error in step 3: no past expense needs to be reversed.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000040","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LEASE_IDENTIFICATION.DEFINITION","IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000040","tested_point":"QST.IFRS16.000040","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16","IFRS 16 §9","IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"The inception date of the lease is the date on which the lessee recognises the right-of-use asset and the lease liability.","es":""},"explanation":{"fr":"","en":"Appendix A distinguishes two dates (IFRS 16, Appendix A). At the inception date, the entity assesses in particular whether the contract is, or contains, a lease (IFRS 16, para. 9). It is at the commencement date that the lessee recognises the right-of-use asset and the lease liability (IFRS 16, para. 22).","es":""},"common_error":{"fr":"","en":"Confusing the inception date and the commencement date.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000041","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LESSOR_CLASSIFICATION.CRITERIA","IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000041","tested_point":"QST.IFRS16.000041","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16","IFRS 16 §66","IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"On 1 February 20X2, Grutia and the lessor Dalvia commit to the principal terms of a lease of a crane (inception date). Dalvia makes the crane available to Grutia on 1 May 20X2 (commencement date). On which dates does Dalvia classify the lease and Grutia recognise the right-of-use asset and the lease liability?","es":""},"explanation":{"fr":"","en":"The definitions in Appendix A distinguish the inception date and the commencement date (IFRS 16, Appendix A). The lessor classifies the lease at the inception date (IFRS 16, para. 66), here 1 February 20X2. The lessee recognises the right-of-use asset and the lease liability at the commencement date (IFRS 16, para. 22), here 1 May 20X2.","es":""},"common_error":{"fr":"","en":"Confusing the inception date and the commencement date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Classification on 1 May 20X2; recognition by the lessee on 1 February 20X2.","es":""},"correct":false,"feedback":{"fr":"","en":"The two dates are reversed: classification takes place at the inception date, recognition at the commencement date.","es":""}},{"id":"B","text":{"fr":"","en":"Classification and recognition by the lessee on 1 February 20X2.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessee recognises nothing before the commencement date, when the asset is made available to it.","es":""}},{"id":"C","text":{"fr":"","en":"Classification and recognition by the lessee on 1 May 20X2.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification by the lessor takes place at the inception date, not at the commencement date.","es":""}},{"id":"D","text":{"fr":"","en":"Classification on 1 February 20X2; recognition by the lessee on 1 May 20X2.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000042","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000042","tested_point":"QST.IFRS16.000042","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16","IFRS 16 §18"],"exercise":{"prompt":{"fr":"","en":"When a contract contains an early termination option that the lessee is reasonably certain not to exercise, the periods it covers form part of the lease term.","es":""},"explanation":{"fr":"","en":"The lease term, a term defined in Appendix A (IFRS 16, Appendix A), is the non-cancellable period, together with the periods covered by an option to extend the lease if the lessee is reasonably certain to exercise it and the periods covered by an option to terminate if the lessee is reasonably certain not to exercise it (IFRS 16, para. 18).","es":""},"common_error":{"fr":"","en":"Excluding from the term the periods covered by a termination option that the lessee is not expected to exercise.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000043","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000043","tested_point":"QST.IFRS16.000043","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §18","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"Hortalis leases a warehouse. The contract provides for a non-cancellable period of 4 years, a first extension option of 2 years, which Hortalis is reasonably certain to exercise given the significant leasehold improvements it is making (case datum), then a second extension option of 3 years, whose exercise is not reasonably certain. What is the lease term?","es":""},"explanation":{"fr":"","en":"The lease term comprises the non-cancellable period and the periods covered by an extension option that the lessee is reasonably certain to exercise (IFRS 16, para. 18; term defined in Appendix A). Term: 4 + 2 = 6 years. The second option, whose exercise is not reasonably certain, is not taken into account.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"4 years.","es":""},"correct":false,"feedback":{"fr":"","en":"The non-cancellable period alone omits the extension option that is reasonably certain.","es":""}},{"id":"B","text":{"fr":"","en":"6 years.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"9 years.","es":""},"correct":false,"feedback":{"fr":"","en":"The second option is not reasonably certain: it must not be included.","es":""}},{"id":"D","text":{"fr":"","en":"7 years.","es":""},"correct":false,"feedback":{"fr":"","en":"You used the 3-year option instead of the 2-year one: re-read which one is reasonably certain.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000044","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000044","tested_point":"QST.IFRS16.000044","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §26","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"Which rate does the lessee use to discount the lease payments when initially measuring the lease liability?","es":""},"explanation":{"fr":"","en":"At the commencement date, the lease liability is measured at the present value of the lease payments not yet paid, discounted at the interest rate implicit in the lease if it can be readily determined, otherwise at the lessee's incremental borrowing rate (IFRS 16, para. 26). Both rates are defined terms (IFRS 16, Appendix A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The interest rate implicit in the lease if it can be readily determined, otherwise the lessee's incremental borrowing rate.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Always its incremental borrowing rate, even if the implicit rate is known.","es":""},"correct":false,"feedback":{"fr":"","en":"The incremental borrowing rate is used only if the implicit rate cannot be readily determined.","es":""}},{"id":"C","text":{"fr":"","en":"The entity's weighted average cost of capital.","es":""},"correct":false,"feedback":{"fr":"","en":"The weighted average cost of capital is not a rate provided for by the standard for the lease liability.","es":""}},{"id":"D","text":{"fr":"","en":"A risk-free rate set by the central bank.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not provide for a risk-free rate to discount the lease liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000045","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000045","tested_point":"QST.IFRS16.000045","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Vexoria knows the interest rate implicit in its lease, which can be readily determined. It may nevertheless choose to discount the lease liability at its incremental borrowing rate if it finds this more practical.","es":""},"explanation":{"fr":"","en":"The interest rate implicit in the lease is used whenever it can be readily determined; the lessee's incremental borrowing rate is used only otherwise (IFRS 16, para. 26). There is no free choice between the two rates.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000046","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000046","tested_point":"QST.IFRS16.000046","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §27","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"Mirabel, lessee of a shop, analyses the cash flows provided for in the contract. Which of them are part of the lease payments included in the lease liability at the commencement date? (several answers)","es":""},"explanation":{"fr":"","en":"The lease payments included in the lease liability comprise fixed payments less lease incentives receivable, variable payments that depend on an index or a rate measured using the index or rate at the commencement date, amounts expected under residual value guarantees, the price of a purchase option that is reasonably certain and certain termination penalties (IFRS 16, para. 27). A payment based on revenue depends neither on an index nor on a rate and is not included; neither is a purchase option that is not reasonably certain. The term lease payments is defined in Appendix A (IFRS 16, Appendix A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A variable payment equal to 2% of the revenue generated in the shop.","es":""},"correct":false,"feedback":{"fr":"","en":"A payment based on sales is not a variable payment that depends on an index or a rate: it is not included.","es":""}},{"id":"B","text":{"fr":"","en":"Fixed payments, less lease incentives receivable from the lessor.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A payment linked to a consumer price index, measured using the index at the commencement date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The exercise price of a purchase option that Mirabel is not reasonably certain to exercise.","es":""},"correct":false,"feedback":{"fr":"","en":"Only the price of a purchase option that is reasonably certain is included.","es":""}},{"id":"E","text":{"fr":"","en":"Amounts that Mirabel expects to pay under a residual value guarantee.","es":""},"correct":true}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS16.000047","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000047","tested_point":"QST.IFRS16.000047","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §24","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"Calvane determines the cost of the right-of-use asset for leased premises. Which items are included in that cost at the commencement date? (several answers)","es":""},"explanation":{"fr":"","en":"The cost of the right-of-use asset comprises the initial amount of the lease liability, lease payments made at or before the commencement date less lease incentives received, the lessee's initial direct costs and the estimate of dismantling or restoration costs required by the contract (IFRS 16, para. 24). Lease incentives received are deducted, not added; variable payments linked to sales are not part of the cost. Right-of-use asset is a term defined in Appendix A (IFRS 16, Appendix A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of the initial measurement of the lease liability.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Lease incentives received from the lessor, added to the cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Lease incentives received reduce the cost; they are not added to it.","es":""}},{"id":"C","text":{"fr":"","en":"Initial direct costs incurred by Calvane.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The estimate of the costs of restoring the premises required by the contract.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Future variable payments based on the revenue generated in the premises.","es":""},"correct":false,"feedback":{"fr":"","en":"Variable payments linked to sales are not part of the lease liability or of the cost of the right-of-use asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000048","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000048","tested_point":"QST.IFRS16.000048","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §62","IFRS 16 §63","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"For a lessor, what is a finance lease?","es":""},"explanation":{"fr":"","en":"A finance lease transfers to the lessee substantially all the risks and rewards incidental to ownership of the underlying asset; otherwise the lease is an operating lease (IFRS 16, para. 62). Both notions are defined in Appendix A (IFRS 16, Appendix A). The standard sets no numerical threshold for the term; such a percentage can only be a working convention, never a rule of IFRS 16.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A lease that necessarily transfers legal ownership of the asset to the lessee at its end.","es":""},"correct":false,"feedback":{"fr":"","en":"Transfer of ownership at the end of the lease is an example of a situation that normally leads to a finance lease (IFRS 16, para. 63), not a mandatory condition.","es":""}},{"id":"B","text":{"fr":"","en":"A lease that transfers to the lessee substantially all the risks and rewards incidental to ownership of the underlying asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A lease whose term exceeds 75% of the economic life of the asset, a threshold set by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 sets no numerical threshold: the percentage cited is not a rule of the standard.","es":""}},{"id":"D","text":{"fr":"","en":"Any lease that contains a purchase option for the lessee, whatever its price.","es":""},"correct":false,"feedback":{"fr":"","en":"A purchase option is cited as an example only if its price is sufficiently lower than fair value for its exercise to be reasonably certain at the inception date (IFRS 16, para. 63).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS16.000049","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LESSOR_CLASSIFICATION.CRITERIA","IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000049","tested_point":"QST.IFRS16.000049","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §61","IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"Under IFRS 16, the lessee classifies each of its leases as an operating lease or a finance lease, and recognises a right-of-use asset only for the latter.","es":""},"explanation":{"fr":"","en":"It is the lessor that classifies each of its leases as an operating lease or a finance lease (IFRS 16, para. 61). The lessee, for its part, recognises a right-of-use asset and a lease liability at the commencement date (IFRS 16, para. 22), subject to the optional exemptions.","es":""},"common_error":{"fr":"","en":"Applying the lessor's operating / finance lease distinction to the lessee.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000050","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LESSOR_FINANCE.INITIAL","IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000050","tested_point":"QST.IFRS16.000050","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §67","IFRS 16 §69","IFRS 16 §76","IFRS 16"],"exercise":{"prompt":{"fr":"","en":"The lessor Finaxa has entered into a finance lease. At what amount does it present its receivable at the commencement date, and what does the difference between the gross investment and the net investment in the lease represent?","es":""},"explanation":{"fr":"","en":"At the commencement date, the lessor presents assets held under a finance lease as a receivable at an amount equal to the net investment in the lease (IFRS 16, para. 67). Payments received are applied against the gross investment to reduce both the principal and the unearned finance income (IFRS 16, para. 76): the difference between gross investment and net investment, terms defined in Appendix A (IFRS 16, Appendix A), represents finance income not yet earned.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the gross investment; the difference corresponds to the unguaranteed residual value.","es":""},"correct":false,"feedback":{"fr":"","en":"The receivable is presented at the net investment, and the difference between gross and net investment corresponds to unearned finance income, not to the unguaranteed residual value.","es":""}},{"id":"B","text":{"fr":"","en":"At the fair value of the underlying asset; there is no difference between gross and net investment.","es":""},"correct":false,"feedback":{"fr":"","en":"The receivable equals the net investment, and there is a difference between gross and net investment.","es":""}},{"id":"C","text":{"fr":"","en":"At the undiscounted total of the payments receivable; the difference corresponds to initial direct costs.","es":""},"correct":false,"feedback":{"fr":"","en":"The receivable is not presented at an undiscounted amount, and initial direct costs are included in the initial measurement of the net investment (IFRS 16, para. 69): they do not explain the difference.","es":""}},{"id":"D","text":{"fr":"","en":"At the net investment; the difference corresponds to unearned finance income.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000051","standard_id":"IFRS16","concept_ids":["IFRS16.DEFINITIONS.KEY_TERMS","IFRS16.LEASE_IDENTIFICATION.DEFINITION","IFRS16.LESSOR_CLASSIFICATION.CRITERIA","IFRS16.LESSEE_INITIAL.RECOGNITION","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000051","tested_point":"QST.IFRS16.000051","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000003","section_id":"dates"},"references":["IFRS 16 §9","IFRS 16 §66","IFRS 16 §22","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Which of the following operations take place at the commencement date of the lease, and not at the inception date? (several answers)","es":""},"explanation":{"fr":"","en":"At the inception date, the entity assesses whether the contract is, or contains, a lease (IFRS 16, para. 9) and the lessor classifies the lease (IFRS 16, para. 66). At the commencement date, the lessee recognises the right-of-use asset and the lease liability (IFRS 16, para. 22), the latter being measured at the present value of the lease payments not yet paid (IFRS 16, para. 26).","es":""},"common_error":{"fr":"","en":"Placing all the analyses of the contract at the commencement date.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Assessing whether the contract contains a lease.","es":""},"correct":false,"feedback":{"fr":"","en":"Whether there is a lease is assessed at the inception date.","es":""}},{"id":"B","text":{"fr":"","en":"The lessee's recognition of the right-of-use asset and the lease liability.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The lessor's classification of the lease as an operating lease or a finance lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor's classification is made at the inception date.","es":""}},{"id":"D","text":{"fr":"","en":"Measuring the lease liability at the present value of the lease payments not yet paid.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000052","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000052","tested_point":"QST.IFRS16.000052","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §9"],"exercise":{"prompt":{"fr":"","en":"True or false? At the inception date of a logistics services contract, Orvalis must assess whether the contract is, or contains, a lease. This is the case if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.","es":""},"explanation":{"fr":"","en":"True. The assessment is made at the inception date of the contract: the contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Paragraphs B9 to B31 explain how to perform this analysis (IFRS 16, para. 9). The title of the contract (services, provision, supply) therefore does not settle the question.","es":""},"common_error":{"fr":"","en":"Thinking that a contract called a services agreement can never contain a lease.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000053","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000053","tested_point":"QST.IFRS16.000053","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §11","IFRS 16 §9"],"exercise":{"prompt":{"fr":"","en":"True or false? Brevane has established that a supply contract does not contain a lease. It must reconsider this conclusion at each reporting date, even if the terms and conditions of the contract have not been changed.","es":""},"explanation":{"fr":"","en":"False. The initial assessment is made at the inception date (IFRS 16, para. 9). The entity then reassesses whether the contract is, or contains, a lease only if its terms and conditions are changed (IFRS 16, para. 11). A reporting date with no change to the contract therefore does not trigger a new analysis.","es":""},"common_error":{"fr":"","en":"Reassessing every year whether there is a lease although the contract has not changed.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000054","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000054","tested_point":"QST.IFRS16.000054","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §10","IFRS 16 §9"],"exercise":{"prompt":{"fr":"","en":"Kelmor makes a specified press available to Alvane for the manufacture of 200,000 parts, without setting a calendar duration. How does the notion of a period of time apply to the analysis of a possible lease?","es":""},"explanation":{"fr":"","en":"The definition requires control of the use of an identified asset for a period of time in exchange for consideration (IFRS 16, para. 9). That period may be described in terms of the amount of use of the identified asset, for example a number of units produced by an item of equipment (IFRS 16, para. 10). The absence of a calendar duration therefore does not prevent the analysis: the period here corresponds to the production of 200,000 parts.","es":""},"common_error":{"fr":"","en":"Ruling out a lease because the contract sets no end date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Without a calendar duration, the contract cannot contain a lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The period may be expressed other than as a calendar duration, in particular as an amount of use.","es":""}},{"id":"B","text":{"fr":"","en":"The period may be expressed as an amount of use, here the number of parts produced.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The period is deemed equal to the entire useful life of the press.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing leads to using the useful life of the press: the period is the use provided for in the contract, here expressed in parts.","es":""}},{"id":"D","text":{"fr":"","en":"A twelve-month period is used by default when the contract sets no duration.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 provides no default duration: the period may be expressed as an amount of use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000055","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000055","tested_point":"QST.IFRS16.000055","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B13","IFRS 16 §9"],"exercise":{"prompt":{"fr":"","en":"Ternis enters into a contract with a supplier for a storage tank, with no serial number or other specification. On the day it is put into service, the supplier installs a particular tank in the Ternis plant; the contract gives the supplier no right to replace it. Does Ternis have an identified asset?","es":""},"explanation":{"fr":"","en":"An asset is usually identified because the contract names it explicitly; it can also be identified implicitly, when it is made available to the customer (IFRS 16, para. B13). Here, the tank installed at Ternis is implicitly specified when it is put into service, and no substitution right calls this conclusion into question. The analysis continues with the other elements of the definition (IFRS 16, para. 9).","es":""},"common_error":{"fr":"","en":"Requiring a written specification of the asset in the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only if the contract is changed to mention the serial number of the tank.","es":""},"correct":false,"feedback":{"fr":"","en":"No change is needed: implicit identification is sufficient.","es":""}},{"id":"B","text":{"fr":"","en":"No, because the contract does not explicitly specify any tank.","es":""},"correct":false,"feedback":{"fr":"","en":"Explicit specification is not the only route: an asset can be identified implicitly when it is made available.","es":""}},{"id":"C","text":{"fr":"","en":"Yes, but the identified asset is the supplier's entire fleet of tanks, not the installed tank.","es":""},"correct":false,"feedback":{"fr":"","en":"The identified asset is the tank made available to Ternis, not the supplier's fleet.","es":""}},{"id":"D","text":{"fr":"","en":"Yes, the tank is implicitly specified when it is made available to Ternis.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000056","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000056","tested_point":"QST.IFRS16.000056","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B14","IFRS 16 §B18"],"exercise":{"prompt":{"fr":"","en":"The contract of Sylcor provides that the supplier may replace the specified self-propelled truck made available to it. Which of the following statements on whether this substitution right is substantive are correct? (several answers)","es":""},"explanation":{"fr":"","en":"A substitution right prevents the existence of an identified asset only if it is substantive throughout the period of use. It is substantive if the supplier has the practical ability to substitute (the customer cannot prevent it and alternative assets are available or can be obtained within a reasonable period) and would benefit economically from the substitution (IFRS 16, para. B14). Merely mentioning the right in the contract is therefore not enough. A right or obligation to replace the asset for repairs, maintenance or malfunction does not prevent the customer from having an identified asset (IFRS 16, para. B18).","es":""},"common_error":{"fr":"","en":"Concluding that there is no identified asset as soon as the contract mentions a replacement right.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The supplier must have the practical ability to substitute: Sylcor cannot prevent it.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The mere mention of the substitution right in the contract is enough to make it substantive.","es":""},"correct":false,"feedback":{"fr":"","en":"A contractual mention is not enough: there must be a practical ability and a net economic benefit for the supplier.","es":""}},{"id":"C","text":{"fr":"","en":"Replacement trucks must be available to the supplier or obtainable within a reasonable period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The supplier must benefit economically, on a net basis, from the substitution.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A right to replace the truck only in the event of a breakdown makes the right substantive.","es":""},"correct":false,"feedback":{"fr":"","en":"Replacement limited to breakdowns, repairs or maintenance does not prevent the customer from having an identified asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000057","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000057","tested_point":"QST.IFRS16.000057","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B15","IFRS 16 §B14"],"exercise":{"prompt":{"fr":"","en":"True or false? The contract making a specified server available to Nolvane allows the supplier to replace it, but only from the third year of the contract onwards. This substitution right is not substantive.","es":""},"explanation":{"fr":"","en":"True. A substitution right that can be exercised only from a particular date, or on the occurrence of a specified event, is not substantive, because the supplier does not have the practical ability to substitute throughout the period of use (IFRS 16, para. B15). This right therefore does not prevent the server from being an identified asset, since only a right that is substantive throughout the period of use would have that effect (IFRS 16, para. B14).","es":""},"common_error":{"fr":"","en":"Considering that a deferred substitution right is enough to rule out an identified asset.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000058","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000058","tested_point":"QST.IFRS16.000058","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B19","IFRS 16 §B14"],"exercise":{"prompt":{"fr":"","en":"The contract of Pradel allows the supplier to replace the specified compressor installed at its site. Pradel has no information on the supplier's fleet or replacement costs and cannot readily determine whether this substitution right is substantive. What should it conclude?","es":""},"explanation":{"fr":"","en":"If the customer cannot readily determine whether the supplier's substitution right is substantive, it presumes that the right is not substantive (IFRS 16, para. B19). Pradel therefore concludes that the compressor is an identified asset, subject to the other conditions. Otherwise, a substantive right requires a practical ability to substitute and a net economic benefit for the supplier (IFRS 16, para. B14).","es":""},"common_error":{"fr":"","en":"Assuming that a substitution right is substantive without being able to demonstrate it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It presumes, out of prudence, that the substitution right is substantive.","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption works the other way: in case of doubt, the right is presumed not to be substantive.","es":""}},{"id":"B","text":{"fr":"","en":"It waits for the first actual substitution before concluding on whether there is an identified asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment cannot be deferred: the presumption that the right is not substantive allows a conclusion now.","es":""}},{"id":"C","text":{"fr":"","en":"It presumes that the substitution right is not substantive.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It requires a certificate from the supplier, failing which the contract is treated as a service contract.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 does not provide for this approach: the presumption applies in favour of an identified asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000059","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000059","tested_point":"QST.IFRS16.000059","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B20","IFRS 16 §B14"],"exercise":{"prompt":{"fr":"","en":"The Marzel group is reviewing three contracts. In which one does the customer have an identified asset?","es":""},"explanation":{"fr":"","en":"A capacity portion that is physically distinct, such as a floor of a building, can be an identified asset; a portion that is not physically distinct, such as part of the capacity of a fibre optic cable, is not, unless it represents substantially all of the capacity of the asset (IFRS 16, para. B20). In addition, a substitution right that is substantive throughout the period of use rules out an identified asset (IFRS 16, para. B14): this is the case for the vehicle in the third contract.","es":""},"common_error":{"fr":"","en":"Treating a share of shared capacity that is not physically distinct as an identified asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A specified floor of an office building, for the exclusive use of the customer.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A 25% share of the capacity of a fibre optic cable, with no physically distinct fibre reserved for the customer.","es":""},"correct":false,"feedback":{"fr":"","en":"A portion that is not physically distinct and does not represent substantially all of the capacity is not an identified asset.","es":""}},{"id":"C","text":{"fr":"","en":"A vehicle that the supplier can replace at any time with one of the available vehicles in its fleet, with a net economic benefit and without the customer being able to prevent it.","es":""},"correct":false,"feedback":{"fr":"","en":"This substitution right is substantive throughout the period of use: there is no identified asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000060","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000060","tested_point":"QST.IFRS16.000060","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B20","IFRS 16 §B13","IFRS 16 §B18","IFRS 16 §B14"],"exercise":{"prompt":{"fr":"","en":"The Vantelle group is analysing five contracts, which contain no substitution rights other than those described. In which ones does the customer have an identified asset? (several answers)","es":""},"explanation":{"fr":"","en":"A capacity portion that is not physically distinct is an identified asset if it represents substantially all of the capacity of the asset, but not otherwise (IFRS 16, para. B20). An asset not specified in the contract can be implicitly specified when it is made available for use by the customer (IFRS 16, para. B13). Replacement for repairs, maintenance or malfunction does not prevent the asset from being identified (IFRS 16, para. B18). By contrast, a substitution right that is substantive throughout the period of use rules it out (IFRS 16, para. B14).","es":""},"common_error":{"fr":"","en":"Treating replacement for malfunction as a substantive substitution right.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Contract 1: a portion of the capacity of a cable, not physically distinct, representing substantially all of its capacity.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Contract 2: a 35% share of the capacity of a pipeline, not physically distinct.","es":""},"correct":false,"feedback":{"fr":"","en":"This portion is neither physically distinct nor representative of substantially all of the capacity: no identified asset.","es":""}},{"id":"C","text":{"fr":"","en":"Contract 3: a vessel not specified in the contract, but made available to the customer with no substitution right for the supplier.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Contract 4: a specified machine that the supplier must replace if it malfunctions.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Contract 5: a specified machine that the supplier can replace at any time, with machines available and a net economic benefit, without the customer being able to prevent it.","es":""},"correct":false,"feedback":{"fr":"","en":"The substitution right here is substantive throughout the period of use: there is no identified asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000061","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000061","tested_point":"QST.IFRS16.000061","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B18","IFRS 16 §B13","IFRS 16 §B21","IFRS 16 §B26"],"exercise":{"prompt":{"fr":"","en":"The controller of Morvan is analysing a four-year contract for a specified industrial printer installed at the Morvan premises. The memo contains four steps. Which step contains an error?","es":""},"explanation":{"fr":"","en":"An asset explicitly specified in the contract is normally identified (IFRS 16, para. B13). A supplier's right or obligation to replace the asset for repairs, maintenance or malfunction does not prevent the customer from having an identified asset (IFRS 16, para. B18): step 2 is therefore wrong. Steps 3 and 4 are correct: Morvan obtains the output of the printer (IFRS 16, para. B21) and decides what is printed and when it is produced (IFRS 16, para. B26).","es":""},"common_error":{"fr":"","en":"Concluding that there is no identified asset because of a clause on replacement in the event of breakdown.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Step 1: the printer is explicitly specified in the contract, which identifies it.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: explicit specification normally identifies the asset.","es":""}},{"id":"B","text":{"fr":"","en":"Step 2: the supplier must replace the printer in the event of a breakdown, so there is no identified asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Step 3: Morvan obtains all of the printer's output over the four years.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: the primary output is part of the economic benefits from use.","es":""}},{"id":"D","text":{"fr":"","en":"Step 4: Morvan alone decides what it prints and when it does so.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: deciding the type and timing of output is part of the right to direct the use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000062","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000062","tested_point":"QST.IFRS16.000062","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B14","IFRS 16 §B17","IFRS 16 §B19","IFRS 16 §9"],"exercise":{"prompt":{"fr":"","en":"Ferlane enters into a five-year contract with a carrier for the transport of a specified volume of goods by railcars. The contract specifies the type of railcars, but for each journey the carrier chooses the railcars used from a large pool available nearby; it can replace them at any time without Ferlane's consent, and this flexibility allows it to optimise the use of its pool at low cost. Between journeys, the railcars stay at the carrier's sites. What conclusion should be reached?","es":""},"explanation":{"fr":"","en":"A substitution right is substantive if the supplier has the practical ability to substitute (the customer cannot prevent it, alternative assets are available) and would benefit economically from it; it then rules out an identified asset (IFRS 16, para. B14). The standard notes that substitution costs are generally higher when the asset is at the customer's premises (IFRS 16, para. B17); here the railcars stay at the carrier's sites, so that obstacle does not arise. The facts here are clear: the presumption reserved for cases in which the customer cannot readily determine whether the right is substantive does not apply (IFRS 16, para. B19). In the absence of an identified asset, the contract does not contain a lease of the railcars (IFRS 16, para. 9).","es":""},"common_error":{"fr":"","en":"Concluding that there is a lease although the supplier has a substantive substitution right.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contract contains a lease of the railcars, since their type is specified in the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Specifying a type of asset is not enough: the carrier has a substantive substitution right throughout the period.","es":""}},{"id":"B","text":{"fr":"","en":"There is no identified asset, as the carrier has a substantive substitution right: no lease.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Ferlane presumes that the substitution right is not substantive and concludes that there is a lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption applies only if the customer cannot readily determine whether the right is substantive; here, the facts are clear.","es":""}},{"id":"D","text":{"fr":"","en":"The contract contains a five-year lease, since the consideration is fixed.","es":""},"correct":false,"feedback":{"fr":"","en":"Fixed consideration does not create an identified asset: the substantive substitution right rules it out.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000063","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000063","tested_point":"QST.IFRS16.000063","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B14","IFRS 16 §B16","IFRS 16 §B17"],"exercise":{"prompt":{"fr":"","en":"A supplier makes a specified bottling line available to Dorlan for six years; the line is installed and fixed in the Dorlan plant. The contract allows the supplier to replace it with an equivalent line. A replacement would require costly dismantling and transport, with no identifiable gain for the supplier. The supplier nevertheless points to the possibility that a future customer might one day agree to pay an above-market price for this line, a possibility considered unlikely at the inception date. Which analysis should be retained?","es":""},"explanation":{"fr":"","en":"A substitution right is substantive only if the supplier has the practical ability to substitute and would benefit economically from the substitution (IFRS 16, para. B14). When the asset is located at the customer's premises, substitution costs are generally higher, which makes it more likely that they exceed the benefits (IFRS 16, para. B17). The assessment is based on facts and circumstances at the inception date, disregarding future events considered unlikely at that date, such as a future customer willing to pay an above-market price (IFRS 16, para. B16). The right is therefore not substantive and the line remains an identified asset.","es":""},"common_error":{"fr":"","en":"Taking an unlikely future event into account to judge that the substitution right is substantive.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The right is substantive, since the contract expressly allows it.","es":""},"correct":false,"feedback":{"fr":"","en":"A contractual mention is not enough: a net economic benefit for the supplier is also needed, and it is absent here.","es":""}},{"id":"B","text":{"fr":"","en":"The right is substantive, given the possibility of finding a customer paying an above-market price.","es":""},"correct":false,"feedback":{"fr":"","en":"This future event, considered unlikely at the inception date, is not taken into account.","es":""}},{"id":"C","text":{"fr":"","en":"The right is not substantive: substitution would cost more than it would bring in.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No conclusion is possible until the supplier has waived its right in writing.","es":""},"correct":false,"feedback":{"fr":"","en":"The conclusion is based on the facts and circumstances at the inception date; no written waiver is required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000064","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000064","tested_point":"QST.IFRS16.000064","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B21","IFRS 16 §B9"],"exercise":{"prompt":{"fr":"","en":"Under a ten-year contract, Halbrec has exclusive use of a specified cogeneration plant. It receives all the electricity produced, which it consumes, as well as the residual heat, which it sells to a neighbouring network. Which benefits does Halbrec take into account in assessing whether it obtains substantially all of the economic benefits from use of the plant?","es":""},"explanation":{"fr":"","en":"Throughout the period of use, the customer must have the right to obtain substantially all of the economic benefits from use of the asset, in addition to the right to direct its use (IFRS 16, para. B9). These benefits, obtained directly or indirectly, for example through exclusive use, include the primary output, by-products, including potential cash flows derived from them, and other benefits that could be realised from a commercial transaction with a third party (IFRS 16, para. B21). The electricity consumed and the heat sold are therefore both taken into account.","es":""},"common_error":{"fr":"","en":"Considering only the primary output and forgetting by-products.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The electricity and the residual heat, including the cash flows from selling it.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only the electricity, the primary output of the plant.","es":""},"correct":false,"feedback":{"fr":"","en":"By-products, such as residual heat, and the cash flows derived from them are also part of the benefits.","es":""}},{"id":"C","text":{"fr":"","en":"Only the cash flows received from third parties, the electricity consumed internally being excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"Benefits can be obtained directly, by using the output: the electricity consumed also counts.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000065","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000065","tested_point":"QST.IFRS16.000065","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B23","IFRS 16 §B21"],"exercise":{"prompt":{"fr":"","en":"True or false? The retailer Lumira has exclusive use of a specified retail unit. The consideration comprises a fixed part and a part equal to 3% of the sales made in the unit, paid to the owner. This payment prevents Lumira from obtaining substantially all of the economic benefits from use of the unit.","es":""},"explanation":{"fr":"","en":"False. When the customer is required to pay the supplier or another party a portion of the cash flows derived from use of the asset as consideration, those cash flows are part of the economic benefits it obtains; consideration based on a percentage of the sales of a retail unit therefore does not prevent the customer from obtaining substantially all of the benefits (IFRS 16, para. B23). Exclusive use of the unit points in the same direction (IFRS 16, para. B21).","es":""},"common_error":{"fr":"","en":"Considering that variable consideration based on sales deprives the customer of part of the benefits.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000066","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000066","tested_point":"QST.IFRS16.000066","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B22","IFRS 16 §B21"],"exercise":{"prompt":{"fr":"","en":"Rivelo has exclusive use of a specified truck for three years, but the contract limits its use to a defined region and to 60,000 km a year. Rivelo uses the truck fully within those limits. How should it assess whether it obtains substantially all of the economic benefits from use?","es":""},"explanation":{"fr":"","en":"The customer must have the right to obtain substantially all of the economic benefits from use, for example through exclusive use (IFRS 16, para. B21). The assessment considers the benefits within the defined scope of the right to use: if the use of a vehicle is restricted to a territory or a mileage, only the benefits from use within those limits are considered (IFRS 16, para. B22). Rivelo obtains all of the benefits within that scope.","es":""},"common_error":{"fr":"","en":"Comparing the benefits obtained with unlimited use of the truck.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By reference to the benefits the truck would provide with no limit on region or mileage.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment is limited to the contractual scope of the right to use, not to unlimited use.","es":""}},{"id":"B","text":{"fr":"","en":"Contractual limits in principle prevent the customer from obtaining substantially all of the benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"The limits define the scope of the assessment; they do not rule out a lease.","es":""}},{"id":"C","text":{"fr":"","en":"By reference to the benefits the supplier would obtain from reselling the truck at the end of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The supplier's resale of the truck after the period of use is outside the scope analysed.","es":""}},{"id":"D","text":{"fr":"","en":"By reference only to the benefits from use within the region and mileage limit in the contract.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000067","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000067","tested_point":"QST.IFRS16.000067","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B25","IFRS 16 §B26","IFRS 16 §B27","IFRS 16 §B30"],"exercise":{"prompt":{"fr":"","en":"The contract entered into by Ostral for a specified machine tool provides for several rights. Which of them are rights to direct how and for what purpose the machine is used?","es":""},"explanation":{"fr":"","en":"The customer directs how and for what purpose the asset is used if, within the scope of the contract, it can change them throughout the period of use; only decision-making rights that affect the economic benefits derived from use are relevant (IFRS 16, para. B25). Relevant rights include rights to change the type of output, when it is produced, where it is produced, and whether and how much is produced (IFRS 16, para. B26). Rights limited to operating or maintaining the asset are not among them (IFRS 16, para. B27), and a clause protecting the supplier's asset is a protective right, which defines the scope without preventing the customer from directing the use (IFRS 16, para. B30).","es":""},"common_error":{"fr":"","en":"Confusing the supplier's protective rights with the right to direct the use.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ostral's right to change the type of parts manufactured.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Ostral's right to carry out the routine maintenance of the machine.","es":""},"correct":false,"feedback":{"fr":"","en":"A right limited to maintenance, even an essential one, does not allow the customer to direct how and for what purpose the asset is used.","es":""}},{"id":"C","text":{"fr":"","en":"Ostral's right to decide when the machine produces and in what quantity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The supplier's right to cap the maximum throughput to protect the machine.","es":""},"correct":false,"feedback":{"fr":"","en":"This is a protective right: it defines the scope of the right of use without giving the supplier the right to direct the use.","es":""}},{"id":"E","text":{"fr":"","en":"Ostral's right to install the machine at another of its sites, within the scope provided for in the contract.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000068","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000068","tested_point":"QST.IFRS16.000068","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B30","IFRS 16 §B27","IFRS 16 §B24","IFRS 16 §B26"],"exercise":{"prompt":{"fr":"","en":"The Calvène group obtains exclusive use of a specified vessel for eight years, with no substitution right for the supplier. Calvène decides which goods are carried, which ports are served and the departure dates, subject to clauses that prohibit sailing in high-risk areas and carrying hazardous materials. The supplier provides the crew and maintains the vessel. The internal auditor concludes that the contract does not contain a lease. Which statement in the auditor's memo is wrong and distorts the conclusion?","es":""},"explanation":{"fr":"","en":"Clauses that protect the supplier's asset, its personnel or its compliance with laws and regulations are protective rights: they define the scope of the right of use without, on their own, preventing the customer from directing the use (IFRS 16, para. B30). Statement A is therefore the error. Rights limited to operating and maintaining the asset are not rights to direct how and for what purpose it is used (IFRS 16, para. B27). Calvène decides what is carried, where and when (IFRS 16, para. B26): it has the right to direct the use of the vessel (IFRS 16, para. B24), and the contract contains a lease.","es":""},"common_error":{"fr":"","en":"Confusing the supplier's protective rights with the right to direct the use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The clauses on high-risk areas and hazardous materials show that the supplier directs the use of the vessel.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The vessel is specified in the contract and the supplier has no substitution right.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: it leads to an identified asset and does not distort the analysis.","es":""}},{"id":"C","text":{"fr":"","en":"Calvène obtains substantially all of the economic benefits through exclusive use of the vessel.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: exclusive use gives it substantially all of the benefits.","es":""}},{"id":"D","text":{"fr":"","en":"The crew and maintenance provided by the supplier do not give it the right to direct the use of the vessel.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: operating and maintaining are not rights to direct the use.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000069","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000069","tested_point":"QST.IFRS16.000069","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B24","IFRS 16 §B28","IFRS 16 §B29","IFRS 16 §B27"],"exercise":{"prompt":{"fr":"","en":"Before signing the contract, Solenne designed a solar farm (location, capacity, panel orientation) that the supplier builds and then operates for it for twenty years, with no substitution right. This design, supplemented by contractual restrictions, predetermines how and for what purpose the farm is used; no relevant decision remains to be made during the period of use. The supplier handles operation and maintenance. Does Solenne have the right to direct the use of the farm?","es":""},"explanation":{"fr":"","en":"When the relevant decisions about how and for what purpose the asset is used are predetermined, the customer has the right to direct the use in particular if it designed the asset, or specific aspects of it, in a way that predetermines that use (IFRS 16, para. B24). These decisions can be predetermined by the design of the asset or by contractual restrictions (IFRS 16, para. B28). Decision-making rights before the period of use are normally disregarded, except precisely when the customer designed the asset (IFRS 16, para. B29). Operation and maintenance by the supplier do not give it that right (IFRS 16, para. B27). Solenne therefore has the right to direct the use.","es":""},"common_error":{"fr":"","en":"Disregarding the customer's design of the asset on the grounds that it precedes the period of use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, because the supplier operates and maintains the farm.","es":""},"correct":false,"feedback":{"fr":"","en":"Operation and maintenance are not rights to direct how and for what purpose the asset is used.","es":""}},{"id":"B","text":{"fr":"","en":"No, because decisions taken before the period of use are never taken into account.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule has an exception: the customer's design of the asset is taken into account.","es":""}},{"id":"C","text":{"fr":"","en":"Yes, because it designed the farm in a way that predetermines its use.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Yes, but only because it receives the electricity produced by the farm.","es":""},"correct":false,"feedback":{"fr":"","en":"Receiving the benefits is not enough: the right to direct the use is a separate condition, met here through the design.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000070","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000070","tested_point":"QST.IFRS16.000070","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B10","IFRS 16 §B9"],"exercise":{"prompt":{"fr":"","en":"Ardance signs a six-year contract with a crane supplier. For the first two years, a specified crane is made available for its exclusive use, with no substitution right, and Ardance alone decides how it is used on its construction sites. For the following four years, the supplier performs lifting operations on demand with its own cranes: it chooses the crane, its deployment and when it is used. What conclusion should be reached?","es":""},"explanation":{"fr":"","en":"A contract conveys the right to control the use of an identified asset if, throughout the period of use, the customer has both the right to obtain substantially all of the economic benefits and the right to direct the use (IFRS 16, para. B9). If the customer controls the use of an identified asset for only a portion of the term of the contract, the contract contains a lease for that portion only (IFRS 16, para. B10). Here, Ardance controls the specified crane for the first two years only.","es":""},"common_error":{"fr":"","en":"Applying a single conclusion to the whole term of the contract when control exists only for a portion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contract contains no lease, because control does not exist over the whole term of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Control over a portion of the term is enough to give rise to a lease for that portion.","es":""}},{"id":"B","text":{"fr":"","en":"The contract contains a lease for the full six years.","es":""},"correct":false,"feedback":{"fr":"","en":"During the last four years, Ardance does not control the use of any identified asset.","es":""}},{"id":"C","text":{"fr":"","en":"The contract contains a lease for the last four years only.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: the supplier directs the use of the cranes during the last four years.","es":""}},{"id":"D","text":{"fr":"","en":"The contract contains a lease for the first two years only.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000073","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.DEFINITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000073","tested_point":"QST.IFRS16.000073","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000004","section_id":"lease-definition"},"references":["IFRS 16 §B31","IFRS 16 §9"],"exercise":{"prompt":{"fr":"","en":"A trainee at Pelvane has to apply the flowchart provided in IFRS 16 to determine whether a contract is, or contains, a lease. In what order does the flowchart sequence the questions?","es":""},"explanation":{"fr":"","en":"A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration (IFRS 16, para. 9). The supporting flowchart sequences the questions on the identified asset (paras B13 to B20), then on the right to obtain substantially all of the economic benefits (paras B21 to B23), and finally on the right to direct the use (paras B24 to B30) (IFRS 16, para. B31).","es":""},"common_error":{"fr":"","en":"Forgetting the economic benefits step.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Amount of consideration, then contract term, then existence of an identified asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The flowchart starts neither from the amount nor from the term: it begins with the identified asset.","es":""}},{"id":"B","text":{"fr":"","en":"Right to direct the use, then identified asset, then economic benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"The order is reversed: the identified asset is examined first.","es":""}},{"id":"C","text":{"fr":"","en":"Identified asset, then substantially all of the economic benefits, then right to direct the use.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Identified asset, then right to direct the use, with no review of the economic benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"The right to obtain substantially all of the economic benefits is a step in its own right.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000074","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.COMBINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000074","tested_point":"QST.IFRS16.000074","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"portfolio"},"references":["IFRS 16 §B1"],"exercise":{"prompt":{"fr":"","en":"Quarnel holds 300 leases of commercial vehicles with similar characteristics. It is considering applying IFRS 16 at portfolio level rather than contract by contract. On what condition is this practical expedient permitted?","es":""},"explanation":{"fr":"","en":"IFRS 16 is designed to be applied lease by lease. As a simplification, an entity may instead apply it to a group of leases with similar characteristics, provided it reasonably expects the effect on its financial statements not to differ materially from a lease-by-lease application (IFRS 16, para. B1). The Standard sets no numerical threshold.","es":""},"common_error":{"fr":"","en":"Confusing the portfolio approach with the combination of contracts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: IFRS 16 must be applied contract by contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The Standard permits, as a practical expedient, application to a portfolio of similar leases.","es":""}},{"id":"B","text":{"fr":"","en":"Quarnel reasonably expects an effect that does not differ materially from applying it contract by contract.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"All the leases were signed on the same day with the same lessor.","es":""},"correct":false,"feedback":{"fr":"","en":"This idea relates to combining contracts, not to the portfolio approach.","es":""}},{"id":"D","text":{"fr":"","en":"The leases represent less than 5% of the total assets of Quarnel.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 sets no numerical threshold for the portfolio approach.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000075","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.COMBINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000075","tested_point":"QST.IFRS16.000075","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"portfolio"},"references":["IFRS 16 §B2"],"exercise":{"prompt":{"fr":"","en":"Velmar signs two contracts on the same day with the same supplier. Which of the following situations does not, on its own, require them to be combined?","es":""},"explanation":{"fr":"","en":"Contracts entered into at or near the same time with the same counterparty, or related parties of the counterparty, are combined and accounted for as a single contract if at least one criterion is met: negotiation as a package with an overall commercial objective that cannot be understood without considering the contracts together, consideration in one contract depending on the price or performance of the other, or rights of use forming a single lease component (IFRS 16, para. B2). Different assets negotiated and priced independently meet none of these criteria.","es":""},"common_error":{"fr":"","en":"Automatically combining all contracts signed on the same day with the same counterparty.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contracts were negotiated as a package, with an overall commercial objective that cannot be understood without considering them together.","es":""},"correct":false,"feedback":{"fr":"","en":"This is a combination criterion: negotiation as a package with an overall commercial objective requires combination.","es":""}},{"id":"B","text":{"fr":"","en":"The amount due under one depends on the price or performance of the other.","es":""},"correct":false,"feedback":{"fr":"","en":"This is a combination criterion: interdependent consideration requires combination.","es":""}},{"id":"C","text":{"fr":"","en":"The rights of use conveyed by the two contracts form a single lease component.","es":""},"correct":false,"feedback":{"fr":"","en":"This is a combination criterion: a single lease component requires combination.","es":""}},{"id":"D","text":{"fr":"","en":"They relate to different assets, negotiated and priced independently.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000076","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.COMBINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000076","tested_point":"QST.IFRS16.000076","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"portfolio"},"references":["IFRS 16 §B2"],"exercise":{"prompt":{"fr":"","en":"The accounting department of the Ostreva group is preparing a fact sheet on combining contracts under IFRS 16. Which elements are part of the conditions that require two contracts to be combined? (several answers)","es":""},"explanation":{"fr":"","en":"Two or more contracts are combined and accounted for as a single contract when they are entered into at or near the same time with the same counterparty, or related parties of the counterparty, and at least one criterion is met: negotiation as a package with an overall commercial objective, consideration in one contract depending on the price or performance of the other, or rights of use forming a single lease component (IFRS 16, para. B2). An identical term or the prior classification of each contract are not among these conditions.","es":""},"common_error":{"fr":"","en":"Requiring the contracts to have the same term in order to combine them.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contracts are entered into at or near the same time.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The contracts have the same term.","es":""},"correct":false,"feedback":{"fr":"","en":"An identical term is not a combination condition.","es":""}},{"id":"C","text":{"fr":"","en":"The contracts are entered into with the same counterparty or with related parties of the counterparty.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At least one criterion is met: package negotiation, interdependent consideration or single lease component.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Each contract, taken on its own, is a lease.","es":""},"correct":false,"feedback":{"fr":"","en":"Combination applies to contracts in general; it does not require each one to be a lease already.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000077","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.COMBINATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000077","tested_point":"QST.IFRS16.000077","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"portfolio"},"references":["IFRS 16 §B2"],"exercise":{"prompt":{"fr":"","en":"On 1 March 20X1, Gardelle signs two contracts with Imbra: the provision of a specified warehouse for five years and a three-year handling service. The warehouse contract provides for a 15% discount on the consideration as long as the handling contract is not terminated. How should Gardelle account for these contracts?","es":""},"explanation":{"fr":"","en":"Contracts entered into at the same time with the same counterparty are combined and accounted for as a single contract if at least one criterion is met, in particular when the consideration in one contract depends on the price or performance of the other (IFRS 16, para. B2). Here, the 15% discount on the warehouse depends on the handling contract continuing: the two contracts are combined. A different term does not prevent this.","es":""},"common_error":{"fr":"","en":"Analysing separately two contracts negotiated as a package whose prices depend on each other.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It analyses them separately, as they are two separate documents.","es":""},"correct":false,"feedback":{"fr":"","en":"Analysing them separately ignores the interdependence of the consideration, which requires combination.","es":""}},{"id":"B","text":{"fr":"","en":"It combines them only if the two contracts have the same term.","es":""},"correct":false,"feedback":{"fr":"","en":"The term is not a combination criterion: different terms do not prevent combination.","es":""}},{"id":"C","text":{"fr":"","en":"It combines them, as the consideration for the warehouse depends on the performance of the handling contract.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It combines them only if Imbra is a related party of Gardelle.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion concerns the same counterparty or its related parties; Imbra is the same counterparty for both contracts.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000078","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.COMBINATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000078","tested_point":"QST.IFRS16.000078","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"portfolio"},"references":["IFRS 16 §B2"],"exercise":{"prompt":{"fr":"","en":"On 10 June 20X2, Pennec signs with Arlis a contract for specified offices. On 14 June 20X2, it signs with Arlis Services, a subsidiary of Arlis, a contract for the furniture of those offices. The Arlis group negotiated the two contracts together, as an overall fit-out offer whose commercial objective can only be understood by considering them together. What conclusion should be reached?","es":""},"explanation":{"fr":"","en":"Contracts entered into at or near the same time with the same counterparty or related parties of the counterparty are combined if at least one criterion is met, in particular negotiation as a package with an overall commercial objective that cannot be understood without considering the contracts together (IFRS 16, para. B2). Arlis Services is a related party of Arlis, the signatures are close in time and the offer was negotiated as a package: the two contracts are combined and accounted for as a single contract.","es":""},"common_error":{"fr":"","en":"Ruling out combination because one of the contracts is signed by a subsidiary of the counterparty.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No combination, because the counterparties are two legally separate companies.","es":""},"correct":false,"feedback":{"fr":"","en":"Contracts entered into with related parties of the counterparty fall within the scope of combination.","es":""}},{"id":"B","text":{"fr":"","en":"No combination, because the contracts were not signed on the same day.","es":""},"correct":false,"feedback":{"fr":"","en":"Dates close in time are enough: signature on the same day is not required.","es":""}},{"id":"C","text":{"fr":"","en":"Combination: close dates, related party of the counterparty and package negotiation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Combination only if the two contracts provide for the same monthly consideration.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of consideration is not a condition: a single B2 criterion is enough.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000079","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_IDENTIFICATION.COMBINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000079","tested_point":"QST.IFRS16.000079","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"portfolio"},"references":["IFRS 16 §B1"],"exercise":{"prompt":{"fr":"","en":"Thalgo applies IFRS 16 to a portfolio of 1,200 forklift leases with similar characteristics; it reasonably expects an effect that does not differ materially from applying it contract by contract. How does it establish its estimates and assumptions?","es":""},"explanation":{"fr":"","en":"When an entity applies the Standard to a portfolio of leases with similar characteristics, under the practical expedient, it uses estimates and assumptions that reflect the size and composition of the portfolio (IFRS 16, para. B1). It therefore does not use contract-by-contract assumptions, nor those of a single contract, and all the leases in the portfolio remain covered.","es":""},"common_error":{"fr":"","en":"Applying the parameters of a single lease to a whole portfolio.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It uses for each lease the assumptions it would have used individually.","es":""},"correct":false,"feedback":{"fr":"","en":"That would mean giving up the expedient: the portfolio approach relies on assumptions set at portfolio level.","es":""}},{"id":"B","text":{"fr":"","en":"It may exclude the oldest leases from the portfolio to simplify the calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"All the leases in the portfolio remain accounted for; the simplification concerns the estimates.","es":""}},{"id":"C","text":{"fr":"","en":"It applies to the whole portfolio the assumptions of the most recently signed lease.","es":""},"correct":false,"feedback":{"fr":"","en":"A single lease does not reflect the size and composition of the portfolio.","es":""}},{"id":"D","text":{"fr":"","en":"It uses estimates and assumptions that reflect the size and composition of the portfolio.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000080","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000080","tested_point":"QST.IFRS16.000080","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §12","IFRS 16 §16"],"exercise":{"prompt":{"fr":"","en":"Corvel, a lessee, enters into a five-year contract containing a lease of photocopiers and their maintenance by the lessor. It has not elected the practical expedient not to separate components for this class of assets. How does it account for the maintenance?","es":""},"explanation":{"fr":"","en":"Each lease component is accounted for as a lease separately from non-lease components, unless the lessee applies the practical expedient not to separate them (IFRS 16, para. 12). Without that expedient, the lessee accounts for non-lease components, such as maintenance, under other applicable Standards (IFRS 16, para. 16). The maintenance therefore does not form part of the lease payments.","es":""},"common_error":{"fr":"","en":"Including the maintenance portion in the lease payments although the lessee separates the components.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a non-lease component, accounted for under other applicable Standards.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As part of the lease payments, included in the lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Including maintenance in the lease payments amounts to applying an expedient that Corvel has not elected.","es":""}},{"id":"C","text":{"fr":"","en":"As a separate lease, in the same way as the photocopiers.","es":""},"correct":false,"feedback":{"fr":"","en":"Maintenance does not convey the right to use an asset: it is a non-lease component.","es":""}},{"id":"D","text":{"fr":"","en":"It accounts for it only if the lessor invoices it on a separate line.","es":""},"correct":false,"feedback":{"fr":"","en":"Separation depends on the nature of the components, not on how the invoices are presented.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000081","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000081","tested_point":"QST.IFRS16.000081","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §B32","IFRS 16 §B33","IFRS 16 §12"],"exercise":{"prompt":{"fr":"","en":"In a single contract, Ferrand obtains from a lessor a tractor, a trailer that can be used with tractors readily available on the market, and a maintenance service for both vehicles. It also pays file fees that cover administrative tasks of the lessor and transfer no good or service to it. Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"The right to use an underlying asset is a separate lease component if the lessee can benefit from use of that asset on its own or together with readily available resources, and the asset is neither highly dependent on, nor highly interrelated with, the other assets in the contract (IFRS 16, para. B32). Amounts paid for activities that do not transfer a good or service, such as the lessor's administrative charges, are not a separate component: they are part of the total consideration allocated to the components (IFRS 16, para. B33). A contract may thus contain several lease components and non-lease components, such as maintenance (IFRS 16, para. 12).","es":""},"common_error":{"fr":"","en":"Treating the lessor's administrative charges as a separate service component.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The file fees are a separate non-lease component.","es":""},"correct":false,"feedback":{"fr":"","en":"These fees transfer no good or service: they are not a separate component.","es":""}},{"id":"B","text":{"fr":"","en":"The right to use the trailer can be a separate lease component, if the trailer is neither highly dependent on nor highly interrelated with the tractor.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The file fees are part of the total consideration allocated to the identified components.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The maintenance service is a non-lease component.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A single contract can contain only one lease component.","es":""},"correct":false,"feedback":{"fr":"","en":"Each separable right of use forms a separate lease component: a contract can contain several.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000082","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000082","tested_point":"QST.IFRS16.000082","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §15","IFRS 16 §17"],"exercise":{"prompt":{"fr":"","en":"Belcour, a lessee, is considering not separating the non-lease components of its vehicle leases. Which statement about this practical expedient is correct?","es":""},"explanation":{"fr":"","en":"The lessee may elect, by class of underlying asset, not to separate non-lease components and instead account for each lease component and any associated non-lease components as a single lease component; the expedient is not available for embedded derivatives meeting the criteria in paragraph 4.3.3 of IFRS 9 (IFRS 16, para. 15). It is not available to the lessor, which allocates the consideration under IFRS 15 (IFRS 16, para. 17).","es":""},"common_error":{"fr":"","en":"Believing that the expedient can be elected contract by contract or by the lessor.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is elected contract by contract, depending on the amount of services included in each contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The election is made by class of underlying asset, not contract by contract.","es":""}},{"id":"B","text":{"fr":"","en":"It is elected by class of underlying asset; services and lease then form a single lease component.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It extends to embedded derivatives that meet the separation criteria of IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"These embedded derivatives are expressly excluded from the expedient.","es":""}},{"id":"D","text":{"fr":"","en":"It is available on the same terms to the lessor of the vehicles.","es":""},"correct":false,"feedback":{"fr":"","en":"The expedient is reserved for the lessee; the lessor allocates the consideration under IFRS 15.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000083","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000083","tested_point":"QST.IFRS16.000083","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §17","IFRS 16 §15"],"exercise":{"prompt":{"fr":"","en":"Oriande, a lessor, makes available to Peyrac, a lessee, under a single four-year contract, an item of laboratory equipment and a calibration service. Peyrac has elected the practical expedient not to separate components for this class of assets. How does each of the two companies account for the consideration in the contract?","es":""},"explanation":{"fr":"","en":"The lessee may elect, by class of underlying asset, to account for the lease component and the associated non-lease components as a single lease component (IFRS 16, para. 15). The lessor, for its part, allocates the consideration in a contract containing a lease component and other components by applying paragraphs 73 to 90 of IFRS 15; the expedient not to separate is not available to it (IFRS 16, para. 17). The election of Peyrac therefore has no effect on the accounting of Oriande.","es":""},"common_error":{"fr":"","en":"Extending to the lessor the practical expedient available to the lessee.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both companies account for the whole as a single lease component.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor cannot apply the expedient: Oriande must allocate the consideration.","es":""}},{"id":"B","text":{"fr":"","en":"Both companies allocate the consideration under IFRS 15, the election of Peyrac having no effect.","es":""},"correct":false,"feedback":{"fr":"","en":"Peyrac can apply the expedient it has elected for this class of assets.","es":""}},{"id":"C","text":{"fr":"","en":"Oriande may elect the same expedient as Peyrac, for symmetry between the parties.","es":""},"correct":false,"feedback":{"fr":"","en":"No symmetry is provided for: the expedient is not available to the lessor.","es":""}},{"id":"D","text":{"fr":"","en":"Peyrac accounts for the whole as a single lease component; Oriande allocates the consideration under IFRS 15.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000084","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000084","tested_point":"QST.IFRS16.000084","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §14","IFRS 16 §13"],"exercise":{"prompt":{"fr":"","en":"Lantier, a lessee, enters into a contract that includes the lease of an industrial boiler and its maintenance. The lessor never sells maintenance separately, but several service providers on the market charge for similar maintenance. Lantier separates the components. How does it determine the stand-alone price of the maintenance?","es":""},"explanation":{"fr":"","en":"The lessee allocates the consideration on the basis of the relative stand-alone price of each lease component and the aggregate stand-alone price of the non-lease components (IFRS 16, para. 13). The stand-alone price is the price the lessor, or a similar supplier, would charge separately for that component or a similar one; if an observable price is not readily available, the lessee estimates it, maximising the use of observable information (IFRS 16, para. 14). The prices charged by similar providers are the reference here.","es":""},"common_error":{"fr":"","en":"Allocating all the consideration to the lease when the lessor does not sell the service separately.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Based on the price that similar suppliers would charge separately for similar maintenance.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It uses a nil price, as the lessor itself has no price.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor having no price does not mean a nil price: the prices of similar suppliers are used.","es":""}},{"id":"C","text":{"fr":"","en":"Based on the internal cost it would incur by carrying out the maintenance itself, with no reference to the market.","es":""},"correct":false,"feedback":{"fr":"","en":"Observable information exists on the market: it must be favoured.","es":""}},{"id":"D","text":{"fr":"","en":"It allocates all the consideration to the lease, as the maintenance has no price at the lessor.","es":""},"correct":false,"feedback":{"fr":"","en":"This removes the separation that Lantier applies and overstates the lease component.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000085","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000085","tested_point":"QST.IFRS16.000085","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §15","IFRS 16 §16","IFRS 16 §12"],"exercise":{"prompt":{"fr":"","en":"Dunval, a lessee, leases vehicles with a maintenance package and premises with a cleaning service. It elects the practical expedient not to separate components for the vehicles class, but not for the premises class. What is the effect of these elections?","es":""},"explanation":{"fr":"","en":"The election not to separate non-lease components is made by class of underlying asset: for the vehicles, each lease component and the associated maintenance form a single lease component (IFRS 16, para. 15). For the premises, without the expedient, each lease component is separated from the non-lease components (IFRS 16, para. 12) and the cleaning is accounted for under other applicable Standards (IFRS 16, para. 16).","es":""},"common_error":{"fr":"","en":"Applying to all classes of assets the election made for only one of them.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The election made for the vehicles automatically applies to all classes of assets of Dunval.","es":""},"correct":false,"feedback":{"fr":"","en":"The election is made class by class: the one made for the vehicles does not extend to the premises.","es":""}},{"id":"B","text":{"fr":"","en":"For both the vehicles and the premises, the services are excluded from the lease payments.","es":""},"correct":false,"feedback":{"fr":"","en":"For the vehicles, the expedient includes the maintenance in the lease component.","es":""}},{"id":"C","text":{"fr":"","en":"Vehicle maintenance is part of the lease component; the cleaning of the premises follows other Standards.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"For the premises, the cleaning is also part of the lease component, the election following the largest class.","es":""},"correct":false,"feedback":{"fr":"","en":"No rule makes the election follow the largest class: the election is specific to each class.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000086","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000201","tested_point":"VG.IFRS16.000201","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §13","IFRS 16 §16"],"exercise":{"prompt":{"fr":"","en":"Brissac, a lessee, pays the lessor {annual_consideration} a year, in arrears (at the end of each year), for the lease of a packaging machine and its maintenance. The stand-alone prices are {ssp_lease} for the lease and {ssp_non_lease} for the maintenance. Brissac separates the components. What annual amount does it allocate to the lease component?","es":""},"explanation":{"fr":"","en":"The lessee allocates the consideration on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components (IFRS 16, para. 13). Lease component: 120,000 × 100,000 / (100,000 + 25,000) = 120,000 × 80% = 96,000. The maintenance receives 24,000, accounted for under other applicable Standards (IFRS 16, para. 16).","es":""},"common_error":{"fr":"","en":"Treating the whole annual consideration as a lease payment.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_consideration","value":"120000","unit":"EUR"},{"id":"ssp_lease","value":"100000","unit":"EUR"},{"id":"ssp_non_lease","value":"25000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual consideration in the contract","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the lease","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the maintenance","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"LEASE_COMPONENT","label":{"fr":"","en":"Annual consideration allocated to the lease component","es":""},"answer":96000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_COMPONENT","meaning":{"fr":"","en":"Annual consideration allocated to the lease component","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration in the contract","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stand-alone price of the lease","es":""},"value":100000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price of the maintenance","es":""},"value":25000,"unit":"EUR"}],"result":96000,"unit":"EUR"}],"rationale":{"fr":"","en":"The lessee allocates the consideration on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components (IFRS 16, para. 13).","es":""},"references":["REF.IFRS16.13","REF.IFRS16.16"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000087","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000201","tested_point":"VG.IFRS16.000201","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §13","IFRS 16 §12"],"exercise":{"prompt":{"fr":"","en":"The Aubrac firm pays each month, at the start of the month, {monthly_consideration} for a specified office floor and reception and security services provided by the lessor. The monthly stand-alone prices observed on the market are {ssp_space} for the offices and {ssp_services} for the services. Aubrac, a lessee, does not use the practical expedient. What portion of the monthly consideration goes to the lease component?","es":""},"explanation":{"fr":"","en":"Each lease component is separated from the non-lease components (IFRS 16, para. 12), and the consideration is allocated in proportion to the stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components (IFRS 16, para. 13). Monthly lease component: 9,000 × 8,000 / (8,000 + 2,000) = 9,000 × 80% = 7,200. The services receive 1,800 a month.","es":""},"common_error":{"fr":"","en":"Using the stand-alone price of 8,000 instead of allocating the consideration of 9,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"monthly_consideration","value":"9000","unit":"EUR"},{"id":"ssp_space","value":"8000","unit":"EUR"},{"id":"ssp_services","value":"2000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Monthly consideration in the contract","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Monthly stand-alone price of the offices","es":""},"value":"8000","unit":"EUR"},{"label":{"fr":"","en":"Monthly stand-alone price of the services","es":""},"value":"2000","unit":"EUR"}],"steps":[{"id":"LEASE_COMPONENT_MONTHLY","label":{"fr":"","en":"Monthly consideration allocated to the lease component","es":""},"answer":7200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_COMPONENT_MONTHLY","meaning":{"fr":"","en":"Monthly consideration allocated to the lease component","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Monthly consideration in the contract","es":""},"value":9000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Monthly stand-alone price of the offices","es":""},"value":8000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Monthly stand-alone price of the services","es":""},"value":2000,"unit":"EUR"}],"result":7200,"unit":"EUR"}],"rationale":{"fr":"","en":"Each lease component is separated from the non-lease components (IFRS 16, para. 12), and the consideration is allocated in proportion to the stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components (IFRS 16, para. 13).","es":""},"references":["REF.IFRS16.13","REF.IFRS16.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000088","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000201","tested_point":"VG.IFRS16.000201","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §13","IFRS 16 §14"],"exercise":{"prompt":{"fr":"","en":"The haulier Elvire, a lessee, pays {annual_consideration} a year, at the end of each year, for a specified heavy goods vehicle, its maintenance and the training of its drivers by the lessor. The stand-alone prices, based on the prices charged separately by similar suppliers, are: lease {ssp_lease}, maintenance {ssp_maintenance}, training {ssp_training}. Elvire separates the components. What annual amount does it allocate to the lease component?","es":""},"explanation":{"fr":"","en":"The consideration is allocated on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components (IFRS 16, para. 13), these prices being taken from the prices charged separately by similar suppliers (IFRS 16, para. 14). Aggregate stand-alone price of the non-lease components: 6,000 + 4,000 = 10,000. Lease component: 46,000 × 40,000 / (40,000 + 10,000) = 46,000 × 80% = 36,800. The non-lease components receive 9,200.","es":""},"common_error":{"fr":"","en":"Forgetting one of the non-lease components in the denominator.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_consideration","value":"46000","unit":"EUR"},{"id":"ssp_lease","value":"40000","unit":"EUR"},{"id":"ssp_maintenance","value":"6000","unit":"EUR"},{"id":"ssp_training","value":"4000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual consideration in the contract","es":""},"value":"46000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the lease","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the maintenance","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the training","es":""},"value":"4000","unit":"EUR"}],"steps":[{"id":"LEASE_COMPONENT","label":{"fr":"","en":"Annual consideration allocated to the lease component","es":""},"answer":36800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_COMPONENT","meaning":{"fr":"","en":"Annual consideration allocated to the lease component","es":""},"expression":"a * b / (b + (c + d))","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration in the contract","es":""},"value":46000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stand-alone price of the lease","es":""},"value":40000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price of the maintenance","es":""},"value":6000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Stand-alone price of the training","es":""},"value":4000,"unit":"EUR"}],"result":36800,"unit":"EUR"}],"rationale":{"fr":"","en":"The consideration is allocated on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components (IFRS 16, para. 13), these prices being taken from the prices charged separately by similar suppliers (IFRS 16, para. 14).","es":""},"references":["REF.IFRS16.13","REF.IFRS16.14"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000089","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000202","tested_point":"VG.IFRS16.000202","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §B33","IFRS 16 §13"],"exercise":{"prompt":{"fr":"","en":"Vauclair, a lessee, pays each year, at the end of the year, {billed_amount} for the lease of a refrigerated warehouse and a technical monitoring service, plus {admin_fee} of administrative charges of the lessor, which transfer no good or service to it. The stand-alone prices are {ssp_lease} for the lease and {ssp_service} for the monitoring. Vauclair separates the components. What annual amount does it allocate to the lease component?","es":""},"explanation":{"fr":"","en":"The lessor's administrative charges transfer no good or service: they are not a separate component but are part of the total consideration allocated to the components (IFRS 16, para. B33). Total consideration: 108,000 + 3,000 = 111,000. Allocation on relative stand-alone prices (IFRS 16, para. 13): 111,000 × 100,000 / (100,000 + 20,000) = 92,500. The monitoring receives 18,500.","es":""},"common_error":{"fr":"","en":"Excluding the administrative charges from the consideration allocated (wrong result: 90,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"billed_amount","value":"108000","unit":"EUR"},{"id":"admin_fee","value":"3000","unit":"EUR"},{"id":"ssp_lease","value":"100000","unit":"EUR"},{"id":"ssp_service","value":"20000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual amount billed for the lease and the monitoring","es":""},"value":"108000","unit":"EUR"},{"label":{"fr":"","en":"Annual administrative charges","es":""},"value":"3000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the lease","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the monitoring","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"LEASE_COMPONENT","label":{"fr":"","en":"Annual consideration allocated to the lease component","es":""},"answer":92500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_COMPONENT","meaning":{"fr":"","en":"Annual consideration allocated to the lease component","es":""},"expression":"(a + b) * c / (c + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual amount billed for the lease and the monitoring","es":""},"value":108000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual administrative charges","es":""},"value":3000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price of the lease","es":""},"value":100000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Stand-alone price of the monitoring","es":""},"value":20000,"unit":"EUR"}],"result":92500,"unit":"EUR"}],"rationale":{"fr":"","en":"The lessor's administrative charges transfer no good or service: they are not a separate component but are part of the total consideration allocated to the components (IFRS 16, para. B33).","es":""},"references":["REF.IFRS16.B33","REF.IFRS16.13"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000090","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000202","tested_point":"VG.IFRS16.000202","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §B33","IFRS 16 §13"],"exercise":{"prompt":{"fr":"","en":"A private hospital, the Sorbiers clinic, obtains from a lessor a specified medical scanner with a technical support service. It pays, at the start of each year, {billed_amount} for the scanner and the support, and {admin_fee} of file-keeping charges that remunerate internal tasks of the lessor without providing it with any good or service. Stand-alone prices: scanner {ssp_lease}, support {ssp_service}. The clinic, a lessee, does not apply the expedient not to separate components. Compute the annual consideration of the lease component.","es":""},"explanation":{"fr":"","en":"Amounts that remunerate activities of the lessor without transferring a good or service to the lessee are not a separate component; they are added to the total consideration to be allocated (IFRS 16, para. B33). Total consideration: 72,000 + 4,800 = 76,800. Allocation on relative stand-alone prices (IFRS 16, para. 13): 76,800 × 70,000 / (70,000 + 10,000) = 76,800 × 87.5% = 67,200. The support receives 9,600.","es":""},"common_error":{"fr":"","en":"Allocating only 72,000 and forgetting the file-keeping charges (wrong result: 63,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"billed_amount","value":"72000","unit":"EUR"},{"id":"admin_fee","value":"4800","unit":"EUR"},{"id":"ssp_lease","value":"70000","unit":"EUR"},{"id":"ssp_service","value":"10000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual amount paid for the scanner and the support","es":""},"value":"72000","unit":"EUR"},{"label":{"fr":"","en":"Annual file-keeping charges","es":""},"value":"4800","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the scanner","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the support","es":""},"value":"10000","unit":"EUR"}],"steps":[{"id":"LEASE_COMPONENT","label":{"fr":"","en":"Annual consideration allocated to the lease component","es":""},"answer":67200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_COMPONENT","meaning":{"fr":"","en":"Annual consideration allocated to the lease component","es":""},"expression":"(a + b) * c / (c + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual amount paid for the scanner and the support","es":""},"value":72000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual file-keeping charges","es":""},"value":4800,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price of the scanner","es":""},"value":70000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Stand-alone price of the support","es":""},"value":10000,"unit":"EUR"}],"result":67200,"unit":"EUR"}],"references":["REF.IFRS16.B33","REF.IFRS16.13"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000091","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000203","tested_point":"VG.IFRS16.000203","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §13","IFRS 16 §B32","IFRS 16 §12"],"exercise":{"prompt":{"fr":"","en":"Batigra, a lessee, pays {annual_consideration} a year, at the end of each year, for a mobile crane, a flatbed truck and their maintenance, under a single contract. Batigra can benefit from each vehicle on its own, and neither is highly dependent on, or highly interrelated with, the other. Stand-alone prices: crane {ssp_crane}, truck {ssp_truck}, maintenance {ssp_maintenance}. Batigra separates the components. Compute the annual consideration allocated to each of the two lease components.","es":""},"explanation":{"fr":"","en":"Each separable right of use forms a separate lease component (IFRS 16, para. B32): the crane and the truck are two lease components, the maintenance a non-lease component (IFRS 16, para. 12). The consideration is allocated on the basis of the relative stand-alone price of each lease component and the aggregate stand-alone price of the non-lease components (IFRS 16, para. 13). Total stand-alone prices: 90,000 + 45,000 + 15,000 = 150,000. Crane: 135,000 × 90,000 / 150,000 = 81,000. Truck: 135,000 × 45,000 / 150,000 = 40,500. Maintenance: 13,500.","es":""},"common_error":{"fr":"","en":"Treating the crane and the truck as a single lease component.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_consideration","value":"135000","unit":"EUR"},{"id":"ssp_crane","value":"90000","unit":"EUR"},{"id":"ssp_truck","value":"45000","unit":"EUR"},{"id":"ssp_maintenance","value":"15000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual consideration in the contract","es":""},"value":"135000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the crane","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the truck","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the maintenance","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"LEASE_COMPONENT_CRANE","label":{"fr":"","en":"Annual consideration allocated to the crane lease component","es":""},"answer":81000,"tolerance":0,"unit":"EUR"},{"id":"LEASE_COMPONENT_TRUCK","label":{"fr":"","en":"Annual consideration allocated to the truck lease component","es":""},"answer":40500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_COMPONENT_CRANE","meaning":{"fr":"","en":"Annual consideration allocated to the crane lease component","es":""},"expression":"a * b / (b + c + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration in the contract","es":""},"value":135000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stand-alone price of the crane","es":""},"value":90000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price of the truck","es":""},"value":45000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Stand-alone price of the maintenance","es":""},"value":15000,"unit":"EUR"}],"result":81000,"unit":"EUR"},{"step":"LEASE_COMPONENT_TRUCK","meaning":{"fr":"","en":"Annual consideration allocated to the truck lease component","es":""},"expression":"a * b / (c + b + d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual consideration in the contract","es":""},"value":135000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stand-alone price of the truck","es":""},"value":45000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Stand-alone price of the crane","es":""},"value":90000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Stand-alone price of the maintenance","es":""},"value":15000,"unit":"EUR"}],"result":40500,"unit":"EUR"}],"rationale":{"fr":"","en":"Each separable right of use forms a separate lease component (IFRS 16, para. B32): the crane and the truck are two lease components, the maintenance a non-lease component (IFRS 16, para. 12).","es":""},"references":["REF.IFRS16.13","REF.IFRS16.B32","REF.IFRS16.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000092","standard_id":"IFRS16","concept_ids":["IFRS16.COMPONENTS.SEPARATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000203","tested_point":"VG.IFRS16.000203","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000005","section_id":"components-rule"},"references":["IFRS 16 §13","IFRS 16 §B32"],"exercise":{"prompt":{"fr":"","en":"The Lisandre printing works, a lessee, pays {annual_consideration} a year, at the start of each year, for an offset press, a folding machine and a technical support service provided by a single lessor. Each machine can be used on its own with readily available resources and neither is highly dependent on, or highly interrelated with, the other. Stand-alone prices: press {ssp_machine_a}, folding machine {ssp_machine_b}, support {ssp_service}. Determine the annual consideration of the press lease component and of the folding machine lease component.","es":""},"explanation":{"fr":"","en":"The press and the folding machine are two separate lease components, because Lisandre can benefit from each on its own or with readily available resources and neither is highly dependent on the other (IFRS 16, para. B32). The consideration is allocated in proportion to the stand-alone prices (IFRS 16, para. 13). Total stand-alone prices: 50,000 + 30,000 + 20,000 = 100,000. Press: 84,000 × 50% = 42,000. Folding machine: 84,000 × 30% = 25,200. Support: 16,800.","es":""},"common_error":{"fr":"","en":"Allocating the consideration between the machines only, forgetting the support.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_consideration","value":"84000","unit":"EUR"},{"id":"ssp_machine_a","value":"50000","unit":"EUR"},{"id":"ssp_machine_b","value":"30000","unit":"EUR"},{"id":"ssp_service","value":"20000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual consideration in the contract","es":""},"value":"84000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the press","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the folding machine","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Stand-alone price of the support","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"LEASE_COMPONENT_A","label":{"fr":"","en":"Annual consideration allocated to the press lease component","es":""},"answer":42000,"tolerance":0,"unit":"EUR"},{"id":"LEASE_COMPONENT_B","label":{"fr":"","en":"Annual consideration allocated to the folding machine lease component","es":""},"answer":25200,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000093","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000093","tested_point":"QST.IFRS16.000093","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §18"],"exercise":{"prompt":{"fr":"","en":"The lease term includes the non-cancellable period as well as the periods covered by an extension option that the lessee is reasonably certain to exercise.","es":""},"explanation":{"fr":"","en":"The lease term starts from the non-cancellable period, to which are added the optional extension periods whose exercise is reasonably certain, and the periods covered by a termination option that the lessee is reasonably certain not to exercise (IFRS 16, para. 18).","es":""},"common_error":{"fr":"","en":"Equating the lease term with the non-cancellable period alone.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000094","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000094","tested_point":"QST.IFRS16.000094","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §B36"],"exercise":{"prompt":{"fr":"","en":"The lessor of Ombrelle grants three rent-free months at the start of an office lease. Those three months are excluded from the lease term, since no lease payment is made during them.","es":""},"explanation":{"fr":"","en":"The lease term runs from the commencement date and includes any rent-free periods granted by the lessor: the three months without payment are therefore part of the lease term (IFRS 16, para. B36).","es":""},"common_error":{"fr":"","en":"Starting the lease term at the first payment made.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000095","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000095","tested_point":"QST.IFRS16.000095","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §18"],"exercise":{"prompt":{"fr":"","en":"Calvenor leases a hangar for a non-cancellable period of 5 years, with an option to extend for 3 years. The analysis of facts and circumstances concludes that Calvenor is reasonably certain to exercise that option. What lease term should be used?","es":""},"explanation":{"fr":"","en":"The lease term comprises the non-cancellable period of 5 years and the extension period of 3 years whose exercise is reasonably certain, that is 8 years (IFRS 16, para. 18).","es":""},"common_error":{"fr":"","en":"Using the non-cancellable period although the extension is reasonably certain.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"5 years, because only the non-cancellable period binds Calvenor.","es":""},"correct":false,"feedback":{"fr":"","en":"The optional period is added as soon as the exercise of the option is reasonably certain.","es":""}},{"id":"B","text":{"fr":"","en":"8 years.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"3 years, being only the period covered by the option.","es":""},"correct":false,"feedback":{"fr":"","en":"The non-cancellable period is always part of the lease term; the option is added to it, it does not replace it.","es":""}},{"id":"D","text":{"fr":"","en":"5 years, the 3-year option being only mentioned in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"An option that is reasonably certain to be exercised enters the lease term itself, not only the disclosures.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000096","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000096","tested_point":"QST.IFRS16.000096","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §B35"],"exercise":{"prompt":{"fr":"","en":"Fenouillet leases a warehouse for 6 years. The contract allows only the lessor to terminate it at the end of the fourth year; Fenouillet has no termination right. What non-cancellable period should be used?","es":""},"explanation":{"fr":"","en":"When only the lessor can terminate, the period covered by its option is part of the non-cancellable period; only a termination option held by the lessee is considered as such in determining the lease term (IFRS 16, para. B35). The non-cancellable period is therefore 6 years.","es":""},"common_error":{"fr":"","en":"Treating a lessor's option as a lessee's termination option.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"4 years, because the contract may end after the fourth year.","es":""},"correct":false,"feedback":{"fr":"","en":"A termination right held only by the lessor does not shorten the lessee's non-cancellable period.","es":""}},{"id":"B","text":{"fr":"","en":"4 or 6 years depending on the probability that the lessor exercises its termination right at the end of the fourth year.","es":""},"correct":false,"feedback":{"fr":"","en":"No probability is estimated: the period covered by the lessor's option is included automatically.","es":""}},{"id":"C","text":{"fr":"","en":"6 years, the period covered by the lessor's option remaining in the non-cancellable period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"2 years, being the period covered by the lessor's termination option.","es":""},"correct":false,"feedback":{"fr":"","en":"Those 2 years are added to the first 4 years in the non-cancellable period; they do not make it up on their own.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000097","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000097","tested_point":"QST.IFRS16.000097","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §20"],"exercise":{"prompt":{"fr":"","en":"At each reporting date, the lessee reassesses whether it is reasonably certain to exercise its extension options on the basis of changes in market rents alone, even in the absence of any significant event within its control.","es":""},"explanation":{"fr":"","en":"Reassessment is not periodic: it occurs only upon a significant event or change in circumstances, within the control of the lessee, that affects the assessment of the option (IFRS 16, para. 20). A mere change in market rents is not enough.","es":""},"common_error":{"fr":"","en":"Reassessing the lease term at each reporting date on the basis of market changes alone.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000098","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000098","tested_point":"QST.IFRS16.000098","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §19","IFRS 16 §B37"],"exercise":{"prompt":{"fr":"","en":"At the commencement date, Pradelle must assess whether it is reasonably certain to exercise the extension option in a lease of a logistics site. Which of the following are facts and circumstances creating an economic incentive that must be considered? (several answers)","es":""},"explanation":{"fr":"","en":"The assessment considers all facts and circumstances that create an economic incentive for the lessee (IFRS 16, para. 19), including the terms of the optional periods compared with market terms, significant leasehold improvements, termination costs and the importance of the asset to the operations, taking into account their expected changes up to the exercise date (IFRS 16, para. B37). The lessor's own choices create no incentive for the lessee.","es":""},"common_error":{"fr":"","en":"Looking only at contractual clauses and ignoring improvements and exit costs.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The lessor's financing structure.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor's financing does not change the lessee's economic incentive to extend.","es":""}},{"id":"B","text":{"fr":"","en":"The terms of the optional period compared with market terms.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Significant leasehold improvements made or planned by Pradelle on the site.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The depreciation method applied by the lessor to the warehouse.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor's accounting policy has no effect on the lessee's economic incentive.","es":""}},{"id":"E","text":{"fr":"","en":"Costs relating to the termination, such as finding and fitting out another site.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The importance of the site to Pradelle's operations.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000099","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000099","tested_point":"QST.IFRS16.000099","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §B34"],"exercise":{"prompt":{"fr":"","en":"Garonnelle leases an archive room for an initial period of 12 months. Thereafter the contract continues month to month, and each party may terminate it at any time without the other's permission, with no penalty or other cost (no improvements, room easily replaceable). Garonnelle plans to occupy the room for 36 months. Over which period is the contract enforceable for determining the lease term?","es":""},"explanation":{"fr":"","en":"To determine the lease term, the entity identifies the period for which the contract is enforceable; it is no longer enforceable once the lessee and the lessor each have the right to terminate it without the other's permission with no more than an insignificant penalty (IFRS 16, para. B34). Here, that situation is reached after the first 12 months.","es":""},"common_error":{"fr":"","en":"Using the period of use the lessee hopes for.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"12 months: beyond that, each party can terminate without the other's permission with a nil penalty.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"36 months, being the occupation period planned by Garonnelle.","es":""},"correct":false,"feedback":{"fr":"","en":"An intention to occupy does not make enforceable a period that each party can freely end.","es":""}},{"id":"C","text":{"fr":"","en":"No period, since the contract is never enforceable.","es":""},"correct":false,"feedback":{"fr":"","en":"The initial period of 12 months binds both parties: it is enforceable.","es":""}},{"id":"D","text":{"fr":"","en":"24 months, adding to the initial 12 months one year of monthly renewals considered probable by Garonnelle.","es":""},"correct":false,"feedback":{"fr":"","en":"A renewal that each party can refuse without penalty is not part of the enforceable period.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000100","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000100","tested_point":"QST.IFRS16.000100","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §19","IFRS 16 §B37"],"exercise":{"prompt":{"fr":"","en":"Lumbres leases a shop for a non-cancellable period of 3 years, with an option to extend for 5 years. At the commencement date, it makes significant leasehold improvements with a useful life of 8 years that cannot be moved elsewhere. The accountant uses a lease term of 3 years on the grounds that the option has not yet been exercised, with no further analysis. What is the error?","es":""},"explanation":{"fr":"","en":"The lessee must assess whether it is reasonably certain to exercise the option by considering all facts and circumstances that create an economic incentive (IFRS 16, para. 19), including significant leasehold improvements expected to have significant economic benefit when the option becomes exercisable (IFRS 16, para. B37). Setting the option aside merely because it has not been exercised skips that analysis.","es":""},"common_error":{"fr":"","en":"Using the non-cancellable period alone despite significant improvements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"8 years should have been used automatically, since every extension option enters the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"An option enters the lease term only if its exercise is reasonably certain: inclusion is not automatic.","es":""}},{"id":"B","text":{"fr":"","en":"The economic incentive created by the significant leasehold improvements was not assessed to judge whether the extension is reasonably certain.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The lease term must match the useful life of the improvements, whatever the options.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease term does not mirror the useful life of the improvements; they are one indicator among others.","es":""}},{"id":"D","text":{"fr":"","en":"No error: an option not yet exercised can never enter the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"An unexercised option enters the lease term when its exercise is reasonably certain.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000101","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000101","tested_point":"QST.IFRS16.000101","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §20","IFRS 16 §B41"],"exercise":{"prompt":{"fr":"","en":"At the commencement date, Hautecombe excluded a 4-year extension option from the lease term of its warehouse lease. During the third year, it decides to install in the warehouse a highly customised automated storage system, not anticipated at the outset, from which it will derive significant economic benefit when the option becomes exercisable. The contract itself is not changed. What must Hautecombe do?","es":""},"explanation":{"fr":"","en":"The lessee reassesses whether it is reasonably certain to exercise an option upon a significant event within its control that affects that assessment (IFRS 16, para. 20). Significant leasehold improvements not anticipated at the commencement date and expected to have significant economic benefit when the option becomes exercisable are an example (IFRS 16, para. B41).","es":""},"common_error":{"fr":"","en":"Treating the lease term as frozen at the commencement date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Wait for the option exercise date to revisit the lease term, if need be.","es":""},"correct":false,"feedback":{"fr":"","en":"The significant event has occurred now: the reassessment is not deferred to the exercise date.","es":""}},{"id":"B","text":{"fr":"","en":"Reassess now whether the exercise of the extension option is reasonably certain.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Do nothing: the lease term set at the commencement date is never revisited while the contract is unchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease term is reassessed upon a significant event within the lessee's control, even if the contract is unchanged.","es":""}},{"id":"D","text":{"fr":"","en":"Account for a new, separate lease for the 4-year optional period.","es":""},"correct":false,"feedback":{"fr":"","en":"The contract is not changed: the option of the existing lease is reassessed; no new lease is created.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000102","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000102","tested_point":"QST.IFRS16.000102","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §21"],"exercise":{"prompt":{"fr":"","en":"At the commencement date, Mirandol used a lease term of 5 years for the lease of a workshop, its 2-year extension option not being reasonably certain. At the end of the fifth year, Mirandol notifies the lessor that it exercises that option, as provided by the contract. How is the lease term treated?","es":""},"explanation":{"fr":"","en":"The entity revises the lease term when there is a change in the non-cancellable period, in particular when the lessee exercises an option not previously included in the lease term (IFRS 16, para. 21). Exercising the option brings the lease term to 7 years.","es":""},"common_error":{"fr":"","en":"Confusing the revision of the lease term (change in the non-cancellable period) with a market-driven reassessment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The lease term remains 5 years: it was set at the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease term is not frozen: exercising an excluded option changes the non-cancellable period and requires a revision.","es":""}},{"id":"B","text":{"fr":"","en":"The 2 additional years form a separate contract unrelated to the original lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"The option is part of the existing contract: exercising it leads to revising that lease's term.","es":""}},{"id":"C","text":{"fr":"","en":"The lease term is revised only if market rents have risen since the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"The revision results from exercising the option, whatever the market trend.","es":""}},{"id":"D","text":{"fr":"","en":"The lease term is revised, since exercising an option not previously included changes the non-cancellable period.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000103","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000103","tested_point":"QST.IFRS16.000103","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §B41","IFRS 16 §20"],"exercise":{"prompt":{"fr":"","en":"Vaudrey leases an office floor for a lease term of 6 years; its 4-year extension option was not included in the lease term. At the beginning of the second year, Vaudrey enters into a sublease of that floor for 7 years, that is beyond the end of the previously determined lease term. What is the consequence for the head lease?","es":""},"explanation":{"fr":"","en":"Entering into a sublease for a period beyond the end of the previously determined lease term is one of the significant events, within the control of the lessee, that require the lease term to be reassessed (IFRS 16, para. B41). Vaudrey therefore reassesses whether the exercise of its option is reasonably certain (IFRS 16, para. 20).","es":""},"common_error":{"fr":"","en":"Analysing the sublease in isolation, with no effect on the head lease.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: the sublease is a separate contract, entered into with a third party, that has no bearing on the lease term of the head lease.","es":""},"correct":false,"feedback":{"fr":"","en":"Subleasing beyond the lease term used is precisely an event that affects the assessment of the head lease option.","es":""}},{"id":"B","text":{"fr":"","en":"The non-cancellable period of the head lease is automatically extended to 8 years.","es":""},"correct":false,"feedback":{"fr":"","en":"The non-cancellable period does not change: the sublease leads to reassessing the option, not to mechanically changing the head lease.","es":""}},{"id":"C","text":{"fr":"","en":"It is a significant event within Vaudrey's control, which requires the extension option to be reassessed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The lease term of the head lease will be revisited only at the end of the sixth year.","es":""},"correct":false,"feedback":{"fr":"","en":"The reassessment takes place when the event occurs, without waiting for the end of the non-cancellable period.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000104","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000104","tested_point":"QST.IFRS16.000104","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §21"],"exercise":{"prompt":{"fr":"","en":"When an event provided for in the contract contractually obliges the lessee to exercise an option not previously included in the lease term, the entity revises the lease term.","es":""},"explanation":{"fr":"","en":"The lease term is revised when there is a change in the non-cancellable period, which includes the occurrence of a contractual event that obliges the lessee to exercise an option not previously included (IFRS 16, para. 21).","es":""},"common_error":{"fr":"","en":"Believing that only a voluntary decision of the lessee can change the lease term.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000105","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000105","tested_point":"QST.IFRS16.000105","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §20","IFRS 16 §B41"],"exercise":{"prompt":{"fr":"","en":"Ternoise leases several industrial sites. Which of the following situations, arising after the commencement date, are significant events within its control that require the lease term of its leases to be reassessed?","es":""},"explanation":{"fr":"","en":"Reassessment is triggered by a significant event within the lessee's control (IFRS 16, para. 20). The examples given include unanticipated significant leasehold improvements, unanticipated significant customisation of the asset, a sublease beyond the lease term used and a business decision directly relevant to exercising an option (IFRS 16, para. B41). Changes in market rents or interest rates are not within the lessee's control.","es":""},"common_error":{"fr":"","en":"Reassessing the lease term following market changes.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Significant leasehold improvements, not anticipated at the commencement date, expected to have significant economic benefit when the option becomes exercisable.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A general rise in market rents in the region.","es":""},"correct":false,"feedback":{"fr":"","en":"Market rents are outside the lessee's control: their rise alone does not trigger a reassessment.","es":""}},{"id":"C","text":{"fr":"","en":"A significant customisation of the underlying asset, not anticipated at the commencement date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A rise in Ternoise's incremental borrowing rate.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the borrowing rate is not an event within the lessee's control affecting the option.","es":""}},{"id":"E","text":{"fr":"","en":"A business decision directly relevant to exercising or not exercising an option.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000107","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000107","tested_point":"QST.IFRS16.000107","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §19","IFRS 16 §B37","IFRS 16 §B39","IFRS 16 §B40"],"exercise":{"prompt":{"fr":"","en":"Arvelle leases a specific packaging line for a non-cancellable period of 2 years, renewable each year at Arvelle's option for 5 further years, at a rent set at 40% of the initial rent, a case datum considered well below market. The line is integrated into the plant; replacing it would require stopping production for 3 months. Arvelle usually uses this type of equipment for 7 years. Management has made no formal renewal decision. Which analysis is most consistent with IFRS 16?","es":""},"explanation":{"fr":"","en":"Reasonable certainty is assessed on all facts and circumstances that create an economic incentive (IFRS 16, para. 19): optional rents that are favourable compared with the market, costs relating to exit (here the production stoppage) and the importance of the asset to the operations (IFRS 16, para. B37). A short non-cancellable period makes an extension more likely (IFRS 16, para. B39) and the practice of using such assets for 7 years informs the analysis (IFRS 16, para. B40). These elements point to a lease term of 2 + 5 = 7 years, which remains a judgemental conclusion to be documented.","es":""},"common_error":{"fr":"","en":"Using the non-cancellable period alone despite strong economic incentives.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"2 years: each annual renewal can be declined, so the lease term is limited to the firm period.","es":""},"correct":false,"feedback":{"fr":"","en":"The ability to decline each renewal does not prevent exercise from being reasonably certain in view of the economic incentives.","es":""}},{"id":"B","text":{"fr":"","en":"7 years: the combined economic incentives make the exercise of the renewals reasonably certain.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"2 years as long as management has not formally decided to renew.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment rests on the economic incentives at the commencement date, not on a formal management decision.","es":""}},{"id":"D","text":{"fr":"","en":"4 years, taking half of the renewals as a prudent compromise.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 provides no arithmetic compromise: each optional period is included or not depending on reasonable certainty.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000108","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000108","tested_point":"QST.IFRS16.000108","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §B35","IFRS 16 §B34"],"exercise":{"prompt":{"fr":"","en":"Quincerot leases forklift trucks for 7 years. Only the lessor can terminate the contract after 3 years, without penalty; Quincerot has no termination right. Quincerot's accountant uses a lease term of 3 years. What is the error?","es":""},"explanation":{"fr":"","en":"When only the lessor has a right to terminate, the period covered by that right is included in the non-cancellable period (IFRS 16, para. B35). The contract ceases to be enforceable only if the lessee and the lessor each have the right to terminate without the other's permission (IFRS 16, para. B34), which is not the case here. The lease term is therefore 7 years.","es":""},"common_error":{"fr":"","en":"Shortening the lease term because of a lessor's termination option.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The probability that the lessor terminates should have been estimated before choosing between 3 and 7 years.","es":""},"correct":false,"feedback":{"fr":"","en":"No probability is estimated: the period covered by the lessor's option is automatically part of the non-cancellable period.","es":""}},{"id":"B","text":{"fr":"","en":"10 years should have been used, adding the 3 years to the 7 years of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The 3 years are within the 7 years of the contract; there is nothing to add.","es":""}},{"id":"C","text":{"fr":"","en":"There is no error: the contract ceases to be enforceable as soon as one party can terminate without penalty.","es":""},"correct":false,"feedback":{"fr":"","en":"The contract remains enforceable as long as the two parties cannot each terminate; here only the lessor can.","es":""}},{"id":"D","text":{"fr":"","en":"The termination right of the lessor alone was treated as a lessee option; the non-cancellable period is 7 years.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000110","standard_id":"IFRS16","concept_ids":["IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000110","tested_point":"QST.IFRS16.000110","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §B38","IFRS 16 §18","IFRS 16 §B37"],"exercise":{"prompt":{"fr":"","en":"Pellerin leases a construction machine for a non-cancellable period of 3 years, with an option to extend for 2 years. If Pellerin does not extend, it must pay the lessor, under a residual value guarantee, an amount such that the lessor's return is substantially the same whether or not the option is exercised. What conclusion should be reached on the lease term?","es":""},"explanation":{"fr":"","en":"When an extension option is combined with another term, such as a residual value guarantee, so that the lessor obtains a substantially identical return whether or not the option is exercised, the entity presumes that the lessee is reasonably certain to exercise the extension (IFRS 16, para. B38). The lease term then includes the optional period: 3 + 2 = 5 years (IFRS 16, para. 18).","es":""},"common_error":{"fr":"","en":"Analysing the extension option in isolation from the other terms of the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"3 years, because the lessor is protected by the residual value guarantee in any case.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor's protection is precisely what underpins the presumption of extension, not a reason to set it aside.","es":""}},{"id":"B","text":{"fr":"","en":"5 years: combining the option and the guarantee leads to presuming that the extension is reasonably certain.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"3 years, the guarantee being analysed separately from the extension option.","es":""},"correct":false,"feedback":{"fr":"","en":"The option and the guarantee must be analysed together, since their combination determines the incentive.","es":""}},{"id":"D","text":{"fr":"","en":"The lease term can only be set at the end of the third year, in the light of the decision actually taken by Pellerin at that time.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease term is assessed from the commencement date (IFRS 16, para. B37); the combination of terms requires the presumption from that date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000111","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000111","tested_point":"QST.IFRS16.000111","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"recognition-rule"},"references":["IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"At the commencement date of a lease that is not exempt, the lessee recognises a right-of-use asset and a lease liability.","es":""},"explanation":{"fr":"","en":"This is the single lessee model: at the commencement date, the lessee recognises a right-of-use asset and a lease liability in its statement of financial position (IFRS 16, para. 22).","es":""},"common_error":{"fr":"","en":"Expensing lease payments as they are paid for a lease that is not exempt.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000112","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000112","tested_point":"QST.IFRS16.000112","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"recognition-rule"},"references":["IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"Estaing leases premises for 6 years; no exemption applies. It records nothing at the commencement date and expenses each lease payment when paid. This treatment complies with IFRS 16.","es":""},"explanation":{"fr":"","en":"For a lease that is not exempt, the lessee recognises a right-of-use asset and a lease liability at the commencement date (IFRS 16, para. 22). Expensing payments as they are made, with nothing in the statement of financial position, does not comply.","es":""},"common_error":{"fr":"","en":"Expensing lease payments as they are paid for a lease that is not exempt.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000113","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000113","tested_point":"QST.IFRS16.000113","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"recognition-rule"},"references":["IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"Morvalis leases a packaging line for 5 years; the lease does not qualify for any exemption. What does Morvalis recognise at the commencement date?","es":""},"explanation":{"fr":"","en":"At the commencement date, the lessee recognises a right-of-use asset and a lease liability (IFRS 16, para. 22). The asset is the right to use the line, not the line itself.","es":""},"common_error":{"fr":"","en":"Expensing lease payments as they are paid for a lease that is not exempt.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: lease payments will be expensed when paid.","es":""},"correct":false,"feedback":{"fr":"","en":"That treatment is reserved for exempt leases; here the lease is recognised in the statement of financial position from the commencement date.","es":""}},{"id":"B","text":{"fr":"","en":"The line itself as property, plant and equipment, as if it had bought it.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessee does not recognise the underlying asset but its right to use it.","es":""}},{"id":"C","text":{"fr":"","en":"A right-of-use asset, the liability being recognised as payments are made.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease liability is recognised at the commencement date, together with the right-of-use asset.","es":""}},{"id":"D","text":{"fr":"","en":"A right-of-use asset and a lease liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000114","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000114","tested_point":"QST.IFRS16.000114","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"recognition-rule"},"references":["IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"For Thalassa's lease of a warehouse, the inception date of the lease is 1 March 20X1, the commencement date is 1 June 20X1 and the first lease payment is made on 30 June 20X1. Thalassa's reporting date is 31 December 20X1. On which date does Thalassa recognise the right-of-use asset and the lease liability?","es":""},"explanation":{"fr":"","en":"The right-of-use asset and the lease liability are recognised at the commencement date (IFRS 16, para. 22), here 1 June 20X1, not at the inception date, on the first payment or at the reporting date.","es":""},"common_error":{"fr":"","en":"Recognising the lease from the inception date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 March 20X1, the inception date of the lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The inception date is not the recognition date: the lessee recognises at the commencement date.","es":""}},{"id":"B","text":{"fr":"","en":"1 June 20X1.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"30 June 20X1, when the first lease payment is made.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognition does not depend on the first payment.","es":""}},{"id":"D","text":{"fr":"","en":"31 December 20X1, the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognition does not wait for the reporting date: it takes place at the commencement date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000115","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION","IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000115","tested_point":"QST.IFRS16.000115","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §22","IFRS 16 §5","IFRS 16 §6"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements on recognition by the lessee at the commencement date are correct? (several answers)","es":""},"explanation":{"fr":"","en":"Unless an exemption applies, the lessee recognises a right-of-use asset and a lease liability at the commencement date (IFRS 16, para. 22). The lessee may however elect not to apply that model to short-term leases and leases of low-value assets (IFRS 16, para. 5); the lease payments are then expensed on a straight-line basis or another systematic basis (IFRS 16, para. 6).","es":""},"common_error":{"fr":"","en":"Expensing lease payments as they are paid for a lease that is not exempt.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The lessee recognises an expense equal to the total lease payments of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"No overall expense is recognised at the commencement date: the lease is recognised in the statement of financial position.","es":""}},{"id":"B","text":{"fr":"","en":"For a lease that is not exempt, the lessee recognises a right-of-use asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The lessee recognises a receivable from the lessor representing the future use of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessee does not recognise a receivable from the lessor; its asset is the right of use.","es":""}},{"id":"D","text":{"fr":"","en":"For a lease that is not exempt, the lessee recognises a lease liability.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"For a short-term lease for which it has elected the exemption, the lessee recognises neither a right-of-use asset nor a lease liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000116","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION","IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000116","tested_point":"QST.IFRS16.000116","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §22","IFRS 16 §5","IFRS 16 §6"],"exercise":{"prompt":{"fr":"","en":"Valcrose leases 40 tablets for its sales staff. The lease is of low-value assets and Valcrose has elected the corresponding exemption. What does it recognise at the commencement date?","es":""},"explanation":{"fr":"","en":"The recognition model of paragraph 22 (right-of-use asset and lease liability) may be set aside by election for low-value assets (IFRS 16, para. 5). Lease payments are then expensed on a straight-line basis over the lease term or on another systematic basis that is more representative (IFRS 16, para. 6).","es":""},"common_error":{"fr":"","en":"Believing that the exemption affects only disclosures.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing in the statement of financial position; lease payments will be expensed on a straight-line or another systematic basis.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A right-of-use asset and a lease liability, the exemption relating only to disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption concerns recognition itself, not only disclosures.","es":""}},{"id":"C","text":{"fr":"","en":"A right-of-use asset only, with no lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"An exempt lease gives rise to neither a right-of-use asset nor a lease liability.","es":""}},{"id":"D","text":{"fr":"","en":"An expense equal to all the lease payments of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments are spread over the lease term, not recognised as a single expense at the commencement date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000117","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000117","tested_point":"QST.IFRS16.000117","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"recognition-rule"},"references":["IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"Since Orbelle is not the legal owner of the truck it leases, it cannot recognise any asset at the commencement date of the lease; it merely provides a disclosure in the notes.","es":""},"explanation":{"fr":"","en":"The lessee does not recognise the truck, which it does not own, but a right-of-use asset, together with a lease liability, from the commencement date (IFRS 16, para. 22). The absence of legal ownership therefore does not prevent the recognition of an asset.","es":""},"common_error":{"fr":"","en":"Confusing the underlying asset with the right to use it.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000123","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000123","tested_point":"QST.IFRS16.000123","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"At the commencement date, the lease liability is measured at the present value of the lease payments that are not paid at that date.","es":""},"explanation":{"fr":"","en":"The initial lease liability is the present value of the lease payments not yet paid at the commencement date, discounted at the interest rate implicit in the lease if it can be readily determined, otherwise at the lessee's incremental borrowing rate (IFRS 16, para. 26).","es":""},"common_error":{"fr":"","en":"Using the undiscounted sum of the lease payments.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000124","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000124","tested_point":"QST.IFRS16.000124","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"Lisandre leases a shop for a fixed payment plus an additional amount equal to 4% of its revenue. The additional amount, reliably estimated in the budget, must be included in the lease liability at the commencement date.","es":""},"explanation":{"fr":"","en":"The only variable payments included in the lease liability are those that depend on an index or a rate, measured using the index or rate at the commencement date (IFRS 16, para. 27). An additional amount based on revenue is not one of them, even if it can be estimated: only the fixed payment is discounted.","es":""},"common_error":{"fr":"","en":"Including variable payments linked to sales in the lease liability.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000125","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000125","tested_point":"QST.IFRS16.000125","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Fontbelle leases a machine tool. The lessor does not provide the information needed to compute the interest rate implicit in the lease, which Fontbelle cannot readily determine. Its incremental borrowing rate is 5%, its weighted average cost of capital 9% and its term deposits earn 2%. Which rate should be used to discount the lease payments at the commencement date?","es":""},"explanation":{"fr":"","en":"Lease payments are discounted at the interest rate implicit in the lease if that rate can be readily determined; otherwise the lessee uses its incremental borrowing rate (IFRS 16, para. 26). Since Fontbelle cannot readily determine the implicit rate, it uses 5%.","es":""},"common_error":{"fr":"","en":"Using an overall financing rate of the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The implicit rate, to be reconstructed at all costs from rough estimates.","es":""},"correct":false,"feedback":{"fr":"","en":"When the implicit rate cannot be readily determined, the standard refers to the incremental borrowing rate, not to a rough reconstruction.","es":""}},{"id":"B","text":{"fr":"","en":"The incremental borrowing rate of 5%.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The weighted average cost of capital of 9%, which reflects Fontbelle's overall financing.","es":""},"correct":false,"feedback":{"fr":"","en":"The weighted average cost of capital is not the fallback rate set by the standard.","es":""}},{"id":"D","text":{"fr":"","en":"The 2% return on deposits.","es":""},"correct":false,"feedback":{"fr":"","en":"The return on deposits is neither the implicit rate nor the incremental borrowing rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000126","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000126","tested_point":"QST.IFRS16.000046","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"Hermelin analyses the payments provided for in a warehouse lease in order to measure the lease liability at the commencement date. Which of them are included? (several answers)","es":""},"explanation":{"fr":"","en":"The payments included are: fixed payments, including in-substance fixed payments, less lease incentives receivable; variable payments that depend on an index or a rate, measured using the index or rate at the commencement date; amounts expected to be payable under a residual value guarantee; the exercise price of a purchase option that is reasonably certain to be exercised; termination penalties if the lease term reflects the exercise of the termination option (IFRS 16, para. 27). A payment based on sales and the price of a purchase option that is not reasonably certain are excluded.","es":""},"common_error":{"fr":"","en":"Including variable payments linked to sales in the lease liability.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An additional payment equal to 1% of the revenue generated through the warehouse.","es":""},"correct":false,"feedback":{"fr":"","en":"A variable payment linked to sales depends on neither an index nor a rate: it is excluded.","es":""}},{"id":"B","text":{"fr":"","en":"The fixed payments, less a lease incentive still receivable from the lessor.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Payments indexed to a consumer price index, measured using the index at the commencement date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The exercise price of a purchase option that is not reasonably certain to be exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"The exercise price of a purchase option is included only if its exercise is reasonably certain.","es":""}},{"id":"E","text":{"fr":"","en":"The amount Hermelin expects to pay under a residual value guarantee.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"A termination penalty, the lease term reflecting the exercise of the termination option.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000127","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000127","tested_point":"QST.IFRS16.000127","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Ravenne leases a machine for 5 years; the 5 annual payments of 20,000 are payable in advance, the first being paid at the commencement date. The interest rate implicit in the lease, which can be readily determined, is 5%. The accountant measures the lease liability by discounting the 5 payments, including the one made at the commencement date. What is the error?","es":""},"explanation":{"fr":"","en":"The lease liability is the present value of the lease payments not yet paid at the commencement date (IFRS 16, para. 26). The first payment of 20,000, made at that date, is excluded: only the 4 remaining payments are discounted at 5%, the implicit rate being readily determinable.","es":""},"common_error":{"fr":"","en":"Also discounting the payment made at the commencement date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The incremental borrowing rate should have been used rather than the implicit rate.","es":""},"correct":false,"feedback":{"fr":"","en":"Since the implicit rate can be readily determined, it is the rate that applies.","es":""}},{"id":"B","text":{"fr":"","en":"The 5 payments should have been taken without discounting, that is 100,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is a present value, not a sum of nominal payments.","es":""}},{"id":"C","text":{"fr":"","en":"The payment made at the commencement date should not have been included: only the 4 remaining payments are discounted.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"There is no error: all the payments of the contract are included in the lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Only the payments not yet paid at the commencement date make up the liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000128","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000128","tested_point":"QST.IFRS16.000128","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §B42","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"Cerdagne leases a press for 4 years. The contract provides that each annual payment is due only if the press proves capable of operating during the year; the press is new, maintained by the lessor, and nothing suggests that it might not operate. How should these payments be treated in measuring the lease liability?","es":""},"explanation":{"fr":"","en":"In-substance fixed payments look variable in form but cannot be avoided in substance, for example payments due only if the asset operates, with no genuine variability (IFRS 16, para. B42). They are part of the fixed payments included in the lease liability (IFRS 16, para. 27).","es":""},"common_error":{"fr":"","en":"Stopping at the variable form of a payment without examining its substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Exclude them: their conditional form makes them variable payments not linked to an index.","es":""},"correct":false,"feedback":{"fr":"","en":"The conditional form is not enough: without genuine variability, the payments are in-substance fixed.","es":""}},{"id":"B","text":{"fr":"","en":"Include them as in-substance fixed payments, since there is no genuine variability.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Include only the first payment, the following ones remaining uncertain.","es":""},"correct":false,"feedback":{"fr":"","en":"All the payments show the same lack of genuine variability: they are all included.","es":""}},{"id":"D","text":{"fr":"","en":"Disclose them in the notes without including them in the lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"In-substance fixed payments are included in the lease liability, not merely disclosed.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000129","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000129","tested_point":"QST.IFRS16.000129","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §27","IFRS 16 §28"],"exercise":{"prompt":{"fr":"","en":"Valdrôme leases a building for 6 years. The annual payment, made at the end of each year, is 100,000 based on the consumer price index at the commencement date, and is then adjusted each year according to changes in that index. The group's economists forecast inflation of 2% per year. Which cash flows does Valdrôme discount to measure the lease liability at the commencement date?","es":""},"explanation":{"fr":"","en":"Variable payments that depend on an index, such as a consumer price index, are included in the lease liability (IFRS 16, para. 28), measured using the index at the commencement date (IFRS 16, para. 27). Valdrôme therefore discounts 6 payments of 100,000, without anticipating the forecast inflation of 2%.","es":""},"common_error":{"fr":"","en":"Discounting estimated future indexation instead of the index at the commencement date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Payments of 100,000 increased each year by the forecast inflation of 2%.","es":""},"correct":false,"feedback":{"fr":"","en":"Estimated future indexation is not used: payments are measured using the index at the commencement date.","es":""}},{"id":"B","text":{"fr":"","en":"6 payments of 100,000, determined using the index at the commencement date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only the first-year payment, the following ones being variable and therefore excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments that depend on an index are not excluded: they are part of the lease liability.","es":""}},{"id":"D","text":{"fr":"","en":"The undiscounted sum of the 6 payments of 100,000, that is 600,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is a present value: the 6 payments must be discounted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000130","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000130","tested_point":"QST.IFRS16.000130","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §B42","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"The lease of a rotary press of Imprimerie Sorgues provides that at the end of the third year Sorgues must either buy the press or extend the lease for 2 years; both branches are realistic and one of them must be paid. At the commencement date, at the rate of the lease, the present value of the payments in the purchase branch is 119,100 and that of the extension branch is 112,400. What discounted amount does Sorgues include in the lease liability in respect of these in-substance fixed payments?","es":""},"explanation":{"fr":"","en":"When several sets of payments are realistic and one of them must be paid, the in-substance fixed payments are the set whose discounted total is the lowest (IFRS 16, para. B42). These in-substance fixed payments are part of the lease payments included in the lease liability (IFRS 16, para. 27). Sorgues therefore uses 112,400, the lower of the two amounts.","es":""},"common_error":{"fr":"","en":"Excluding unavoidable payments because their form remains to be chosen.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"119,100, the highest amount, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not use the highest amount but the set of payments with the lowest discounted total.","es":""}},{"id":"B","text":{"fr":"","en":"115,750, the average of the two branches.","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided for: the set with the lowest discounted total is used.","es":""}},{"id":"C","text":{"fr":"","en":"No amount, since neither branch is certain.","es":""},"correct":false,"feedback":{"fr":"","en":"One of the two branches must be paid: the payment is unavoidable in substance and must be included.","es":""}},{"id":"D","text":{"fr":"","en":"112,400.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000131","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000301","tested_point":"VG.IFRS16.000301","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"Boréal leases a warehouse for {lease_term} years. Fixed annual lease payments of {annual_payment} are made at the end of each year; no payment is made at the commencement date. Since the implicit rate cannot be readily determined, Boréal uses its incremental borrowing rate of {discount_rate}. Compute the lease liability at the commencement date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"The lease liability is the present value of the lease payments not yet paid, at the incremental borrowing rate in the absence of a readily determinable implicit rate (IFRS 16, para. 26). As the 4 payments are made at the end of each year, the annuity factor at 6% over 4 years applies: (1 − 1.06^−4) / 0.06 = 3.465106. Liability: 50,000 × 3.465106 = 173,255 (rounded to the nearest euro).","es":""},"common_error":{"fr":"","en":"Using the undiscounted sum of 200,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"50000","unit":"EUR"},{"id":"lease_term","value":"4","unit":"YEARS"},{"id":"discount_rate","value":"6","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual lease payment made at the end of the year","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Lease liability at the commencement date","es":""},"answer":173255,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_LIABILITY","meaning":{"fr":"","en":"Lease liability at the commencement date","es":""},"expression":"a * ((1 - 1 / (1 + b)^4) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease payment made at the end of the year","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":6,"unit":"PERCENT"}],"result":173255,"unit":"EUR"}],"rationale":{"fr":"","en":"The lease liability is the present value of the lease payments not yet paid, at the incremental borrowing rate in the absence of a readily determinable implicit rate (IFRS 16, para. 26).","es":""},"references":["REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000132","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000301","tested_point":"VG.IFRS16.000301","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"The Tramontane group leases a fleet of refrigerated trucks for {lease_term} years, for {annual_payment} per year paid at the end of each year. The lessor has provided all the lease data: the interest rate implicit in the lease, which can be readily determined, is {implicit_rate}. Tramontane's incremental borrowing rate is {incremental_rate}. Compute the lease liability at the commencement date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"Since the implicit rate can be readily determined, it must be used; the incremental borrowing rate is only a fallback (IFRS 16, para. 26). Payments at the end of each year: annuity factor at 5% over 3 years = (1 − 1.05^−3) / 0.05 = 2.723248. Liability: 80,000 × 2.723248 = 217,860 (rounded to the nearest euro). At the 7% rate, a lower amount would wrongly have been obtained.","es":""},"common_error":{"fr":"","en":"Using the incremental borrowing rate although the implicit rate is available.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"80000","unit":"EUR"},{"id":"lease_term","value":"3","unit":"YEARS"},{"id":"implicit_rate","value":"5","unit":"PERCENT"},{"id":"incremental_rate","value":"7","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual lease payment paid at the end of the year","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Lessee's incremental borrowing rate","es":""},"value":"7","unit":"PERCENT"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Lease liability at the commencement date","es":""},"answer":217860,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_LIABILITY","meaning":{"fr":"","en":"Lease liability at the commencement date","es":""},"expression":"a * ((1 - 1 / (1 + b)^3) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease payment paid at the end of the year","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":5,"unit":"PERCENT"}],"result":217860,"unit":"EUR"}],"references":["REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000133","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000302","tested_point":"VG.IFRS16.000302","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Mistralis leases an office floor for {lease_term} years. Annual lease payments of {annual_payment} are payable in advance, at the start of each year; the first is paid at the commencement date. The incremental borrowing rate, used in the absence of a readily determinable implicit rate, is {discount_rate}. Compute the lease liability at the commencement date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"Only the lease payments not yet paid at the commencement date are part of the lease liability (IFRS 16, para. 26). The first payment being made on that date, 4 payments remain, made at the start of years 2 to 5, that is 1 to 4 years after the commencement date. Annuity factor at 4% over 4 years: (1 − 1.04^−4) / 0.04 = 3.629895. Liability: 120,000 × 3.629895 = 435,587 (rounded to the nearest euro).","es":""},"common_error":{"fr":"","en":"Also discounting the payment made at the commencement date.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"120000","unit":"EUR"},{"id":"lease_term","value":"5","unit":"YEARS"},{"id":"discount_rate","value":"4","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual lease payment payable in advance","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Lease liability at the commencement date","es":""},"answer":435587,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_LIABILITY","meaning":{"fr":"","en":"Lease liability at the commencement date","es":""},"expression":"a * ((1 - 1 / (1 + b)^4) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease payment payable in advance","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incremental borrowing rate","es":""},"value":4,"unit":"PERCENT"}],"result":435587,"unit":"EUR"}],"rationale":{"fr":"","en":"Only the lease payments not yet paid at the commencement date are part of the lease liability (IFRS 16, para. 26).","es":""},"references":["REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000134","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000302","tested_point":"VG.IFRS16.000302","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"The Agrinord cooperative leases a combine harvester for {lease_term} annual seasons. Each lease payment of {annual_payment} is due at the start of the season, and the first is paid on the day the machine is delivered, which is the commencement date. The interest rate implicit in the lease, known to Agrinord, is {discount_rate}. Determine the initial amount of the lease liability, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"The lease liability is the present value of the lease payments not yet paid at the commencement date, at the implicit rate when it can be readily determined (IFRS 16, para. 26). The first payment is made at the commencement date; 5 payments remain, due 1 to 5 years later. Annuity factor at 8% over 5 years: (1 − 1.08^−5) / 0.08 = 3.992710. Liability: 30,000 × 3.992710 = 119,781 (rounded to the nearest euro).","es":""},"common_error":{"fr":"","en":"Discounting 6 payments instead of 5.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"30000","unit":"EUR"},{"id":"lease_term","value":"6","unit":"YEARS"},{"id":"discount_rate","value":"8","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual lease payment due at the start of the season","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Number of seasons (years)","es":""},"value":"6","unit":"YEARS"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"8","unit":"PERCENT"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Lease liability at the commencement date","es":""},"answer":119781,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_LIABILITY","meaning":{"fr":"","en":"Lease liability at the commencement date","es":""},"expression":"a * ((1 - 1 / (1 + b)^5) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease payment due at the start of the season","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":8,"unit":"PERCENT"}],"result":119781,"unit":"EUR"}],"rationale":{"fr":"","en":"The lease liability is the present value of the lease payments not yet paid at the commencement date, at the implicit rate when it can be readily determined (IFRS 16, para. 26).","es":""},"references":["REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000135","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000303","tested_point":"VG.IFRS16.000303","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §27","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Cévenole leases a mobile crane for {lease_term} years, for annual lease payments of {annual_payment} made at the end of each year. It guarantees the lessor that the crane will be worth at least {guaranteed_value} at the end of the lease and will pay the difference if its value is lower. At the commencement date, Cévenole expects the crane to be worth {expected_value} at that date. As the implicit rate cannot be readily determined, its incremental borrowing rate of {discount_rate} is used. Compute the lease liability at the commencement date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"The lease liability includes the fixed payments and the amounts the lessee expects to pay under the residual value guarantee (IFRS 16, para. 27), discounted at the incremental borrowing rate (IFRS 16, para. 26). Amount expected under the guarantee: 40,000 − 25,000 = 15,000, payable in 4 years. Payments: 60,000 × (1 − 1.05^−4) / 0.05 = 60,000 × 3.545951 = 212,757. Guarantee: 15,000 / 1.05^4 = 12,341. Liability: 212,757 + 12,341 = 225,098 (amounts rounded to the nearest euro).","es":""},"common_error":{"fr":"","en":"Discounting the whole guaranteed value of 40,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"60000","unit":"EUR"},{"id":"lease_term","value":"4","unit":"YEARS"},{"id":"discount_rate","value":"5","unit":"PERCENT"},{"id":"guaranteed_value","value":"40000","unit":"EUR"},{"id":"expected_value","value":"25000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual lease payment made at the end of the year","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Guaranteed residual value","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Expected value of the crane at the end of the lease","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Lease liability at the commencement date","es":""},"answer":225098,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000136","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000303","tested_point":"VG.IFRS16.000303","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §27","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Pyrène leases an industrial furnace for {lease_term} years: a fixed annual payment of {annual_payment} made at the end of each year and a variable payment of 2% of the sales generated with the furnace, estimated at {variable_estimate} per year. At the end of the lease, Pyrène may buy the furnace for {purchase_price}; the analysis concludes that the exercise of this option is reasonably certain. The implicit rate cannot be readily determined; the incremental borrowing rate of {discount_rate} is used. Compute the lease liability at the commencement date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"The lease liability includes the fixed payments and the exercise price of a purchase option that is reasonably certain to be exercised, but not variable payments linked to sales (IFRS 16, para. 27); discounting uses the incremental borrowing rate (IFRS 16, para. 26). Fixed payments: 40,000 × (1 − 1.06^−5) / 0.06 = 40,000 × 4.212364 = 168,495. Option: 20,000 / 1.06^5 = 14,945. Liability: 168,495 + 14,945 = 183,440 (amounts rounded to the nearest euro). The estimated variable payment of 15,000 per year is excluded.","es":""},"common_error":{"fr":"","en":"Including the variable payment based on sales.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"40000","unit":"EUR"},{"id":"lease_term","value":"5","unit":"YEARS"},{"id":"discount_rate","value":"6","unit":"PERCENT"},{"id":"purchase_price","value":"20000","unit":"EUR"},{"id":"variable_estimate","value":"15000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fixed annual lease payment made at the end of the year","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Incremental borrowing rate","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Exercise price of the purchase option","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Estimated annual variable payment (based on sales)","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Lease liability at the commencement date","es":""},"answer":183440,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000137","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000137","tested_point":"QST.IFRS16.000137","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §23"],"exercise":{"prompt":{"fr":"","en":"True or false: at the commencement date, the lessee measures the right-of-use asset at the fair value of the underlying asset.","es":""},"explanation":{"fr":"","en":"False. At the commencement date, the right-of-use asset is measured at cost, not at the fair value of the underlying asset (IFRS 16, para. 23). That cost starts from the initial amount of the lease liability and adjusts it for the other items listed by the standard.","es":""},"common_error":{"fr":"","en":"Recognising the right-of-use asset at the market value of the underlying asset.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000138","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000138","tested_point":"QST.IFRS16.000138","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"True or false: initial direct costs incurred by the lessee to obtain the lease are included in the cost of the right-of-use asset.","es":""},"explanation":{"fr":"","en":"True. The cost of the right-of-use asset includes, among other items, the initial direct costs incurred by the lessee, in addition to the initial amount of the lease liability (IFRS 16, para. 24(c)).","es":""},"common_error":{"fr":"","en":"Expensing the initial direct costs at the commencement date.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000139","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000139","tested_point":"QST.IFRS16.000139","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §24","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Ombrelia leases offices for five years. Which of the following items is NOT included in the initial cost of its right-of-use asset?","es":""},"explanation":{"fr":"","en":"The cost of the right-of-use asset comprises the initial amount of the lease liability, lease payments made at or before the commencement date (less lease incentives received), initial direct costs and the estimated restoration costs required by the lease (IFRS 16, para. 24). Future lease payments enter only through the lease liability, that is at their present value (IFRS 16, para. 26): adding their nominal total would count them twice.","es":""},"common_error":{"fr":"","en":"Adding the lease liability and the total of future lease payments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The initial amount of the lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The initial amount of the lease liability is the first component of the cost of the right-of-use asset.","es":""}},{"id":"B","text":{"fr":"","en":"The lease payment made to the lessor before the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"Lease payments made at or before the commencement date are included in cost, net of lease incentives received.","es":""}},{"id":"C","text":{"fr":"","en":"The undiscounted total of future lease payments, on top of the lease liability.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The estimated cost of restoring the offices, required by the lease and borne by Ombrelia.","es":""},"correct":false,"feedback":{"fr":"","en":"Restoration costs required by the lease, for which the lessee bears the obligation, are part of cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000140","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000140","tested_point":"QST.IFRS16.000140","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"Fermatis leases a warehouse. The lease requires it to dismantle, at the end of the lease, the racking it installs. Which items are included in the initial cost of its right-of-use asset? (several answers)","es":""},"explanation":{"fr":"","en":"The cost of the right-of-use asset comprises the initial amount of the lease liability, lease payments made at or before the commencement date less lease incentives received, the lessee's initial direct costs and the estimated dismantling or restoration costs required by the lease (IFRS 16, para. 24). A lease incentive received is deducted, and future interest is not part of initial cost.","es":""},"common_error":{"fr":"","en":"Adding the lease incentive received instead of deducting it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The lease incentive received from the lessor, added to cost.","es":""},"correct":false,"feedback":{"fr":"","en":"A lease incentive received reduces the cost of the right-of-use asset; it is not added to it.","es":""}},{"id":"B","text":{"fr":"","en":"The initial amount of the lease liability.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The initial direct costs incurred by Fermatis.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The interest that the lease liability will generate during the first year.","es":""},"correct":false,"feedback":{"fr":"","en":"Future interest is not part of initial cost: it arises after the commencement date.","es":""}},{"id":"E","text":{"fr":"","en":"The estimated cost of dismantling the racking, as required by the lease.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000141","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000141","tested_point":"QST.IFRS16.000141","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §25","IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"Lamivert leases for 10 years land on which it operates a concrete batching plant; the concrete produced is sold as inventory. The lease requires it to restore the ground damaged by the activity: each year of production creates a new restoration obligation. How should the restoration costs incurred in 20X2 as a result of that year's production be treated?","es":""},"explanation":{"fr":"","en":"Dismantling or restoration costs required by the lease are included in the cost of the right-of-use asset, unless they are incurred to produce inventories (IFRS 16, para. 24(d)). Costs incurred during a period as a consequence of using the right-of-use asset to produce inventories fall under IAS 2; in all cases, the obligation is recognised and measured under IAS 37 (IFRS 16, para. 25).","es":""},"common_error":{"fr":"","en":"Capitalising all restoration costs in the right-of-use asset, whatever their origin.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Add them retrospectively to the cost of the right-of-use asset at the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"Costs arising from producing inventories during a period are excluded from the cost of the right-of-use asset and fall under IAS 2.","es":""}},{"id":"B","text":{"fr":"","en":"Account for them under IAS 2, with the obligation recognised and measured under IAS 37.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise nothing until the end of the lease, when the restoration takes place.","es":""},"correct":false,"feedback":{"fr":"","en":"The obligation arises with that year's production: it must be recognised under IAS 37 without waiting for the end of the lease.","es":""}},{"id":"D","text":{"fr":"","en":"Include them in the lease liability as variable lease payments.","es":""},"correct":false,"feedback":{"fr":"","en":"A restoration obligation is not a lease payment owed to the lessor.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000142","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000142","tested_point":"QST.IFRS16.000142","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §B44","IFRS 16 §B43","IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"Sorelia signs a lease of a warehouse that the lessor is building for it. During construction, before the commencement date, Sorelia pays the lessor 50,000 for its right to use the future warehouse. How is this payment treated?","es":""},"explanation":{"fr":"","en":"A lease may be negotiated before the underlying asset is available, the asset being built for the lessee (IFRS 16, para. B43). Costs the lessee incurs for the construction of the asset fall under other standards, but payments made for the right to use the asset are lease payments, whatever their timing (IFRS 16, para. B44). Made before the commencement date, this payment is included in the cost of the right-of-use asset (IFRS 16, para. 24(b)).","es":""},"common_error":{"fr":"","en":"Treating every payment made before the commencement date as a construction cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a construction cost of an item of property, plant and equipment of Sorelia, under IAS 16.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 16 covers construction costs incurred by the lessee; a payment for the right to use the asset is a lease payment.","es":""}},{"id":"B","text":{"fr":"","en":"As a lease payment made before the commencement date, included in the cost of the right-of-use asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As an expense when paid, since the warehouse is not yet available.","es":""},"correct":false,"feedback":{"fr":"","en":"The payment is for the future right of use: it is not an expense of the period.","es":""}},{"id":"D","text":{"fr":"","en":"As an increase in the lease liability measured at the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease liability covers only lease payments not yet paid at the commencement date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000143","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000401","tested_point":"VG.IFRS16.000401","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §24","IFRS 16 §23"],"exercise":{"prompt":{"fr":"","en":"Bravelle leases an office floor. At the commencement date, the initial lease liability amounts to {lease_liability}. Before that date, Bravelle paid the lessor a first lease payment of {prepaid_payment} and received from it a lease incentive of {incentive_received}. It incurred initial direct costs of {initial_direct_costs}. The lease requires it to restore the premises when it leaves; the estimate of those costs, measured under IAS 37, is {restoration_cost} (given). Compute the cost of the right-of-use asset.","es":""},"explanation":{"fr":"","en":"The right-of-use asset is measured at cost (IFRS 16, para. 23), which comprises the initial lease liability, lease payments made before the commencement date less lease incentives received, initial direct costs and the estimated restoration costs (IFRS 16, para. 24): 380,000 + 20,000 − 15,000 + 6,000 + 24,000 = 415,000.","es":""},"common_error":{"fr":"","en":"Adding the lease incentive received, which gives 445,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"lease_liability","value":"380000","unit":"EUR"},{"id":"prepaid_payment","value":"20000","unit":"EUR"},{"id":"incentive_received","value":"15000","unit":"EUR"},{"id":"initial_direct_costs","value":"6000","unit":"EUR"},{"id":"restoration_cost","value":"24000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Initial lease liability","es":""},"value":"380000","unit":"EUR"},{"label":{"fr":"","en":"Lease payment made before the commencement date","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Lease incentive received from the lessor","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Estimated restoration costs (IAS 37)","es":""},"value":"24000","unit":"EUR"}],"steps":[{"id":"ROU_COST","label":{"fr":"","en":"Cost of the right-of-use asset at the commencement date","es":""},"answer":415000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_COST","meaning":{"fr":"","en":"Cost of the right-of-use asset at the commencement date","es":""},"expression":"a + b - c + d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial lease liability","es":""},"value":380000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease payment made before the commencement date","es":""},"value":20000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Lease incentive received from the lessor","es":""},"value":15000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":6000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Estimated restoration costs (IAS 37)","es":""},"value":24000,"unit":"EUR"}],"result":415000,"unit":"EUR","rationale":{"fr":"","en":"The right-of-use asset is measured at cost (IFRS 16, para. 23), which comprises the initial lease liability, lease payments made before the commencement date less lease incentives received, initial direct costs and the estimated restoration costs (IFRS 16, para. 24): 380,000 + 20,000 − 15,000 + 6,000 + 24,000 = 415,000.","es":""}}],"references":["REF.IFRS16.24","REF.IFRS16.23"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000144","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000401","tested_point":"VG.IFRS16.000401","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §24"],"exercise":{"prompt":{"fr":"","en":"The haulier Kerval leases a logistics depot fitted with modular loading docks. On the commencement date itself, it pays a lease payment of {commencement_payment} and receives from the lessor a contribution of {incentive_received} to its installation costs, qualifying as a lease incentive. The present value of the lease payments still due at that date is {lease_liability}. Kerval bore {initial_direct_costs} of initial direct costs and will have to dismantle the docks at the end of the lease; the estimate of that dismantling, determined under IAS 37, is {dismantling_cost} (given). What is the initial cost of the right-of-use asset?","es":""},"explanation":{"fr":"","en":"Cost of the right-of-use asset (IFRS 16, para. 24): initial lease liability 512,400 + lease payment made at the commencement date 40,000 − lease incentive received 10,000 + initial direct costs 8,600 + dismantling 31,000 = 582,000. The payment made at the commencement date is not in the lease liability, which covers only the payments still due: it is therefore added separately.","es":""},"common_error":{"fr":"","en":"Forgetting the payment made at the commencement date, which gives 542,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"lease_liability","value":"512400","unit":"EUR"},{"id":"commencement_payment","value":"40000","unit":"EUR"},{"id":"incentive_received","value":"10000","unit":"EUR"},{"id":"initial_direct_costs","value":"8600","unit":"EUR"},{"id":"dismantling_cost","value":"31000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Present value of the lease payments still due (lease liability)","es":""},"value":"512400","unit":"EUR"},{"label":{"fr":"","en":"Lease payment made at the commencement date","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Lease incentive received","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"8600","unit":"EUR"},{"label":{"fr":"","en":"Estimated dismantling costs (IAS 37)","es":""},"value":"31000","unit":"EUR"}],"steps":[{"id":"ROU_COST","label":{"fr":"","en":"Initial cost of the right-of-use asset","es":""},"answer":582000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_COST","meaning":{"fr":"","en":"Initial cost of the right-of-use asset","es":""},"expression":"a + b - c + d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of the lease payments still due (lease liability)","es":""},"value":512400,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease payment made at the commencement date","es":""},"value":40000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Lease incentive received","es":""},"value":10000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":8600,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Estimated dismantling costs (IAS 37)","es":""},"value":31000,"unit":"EUR"}],"result":582000,"unit":"EUR","rationale":{"fr":"","en":"Cost of the right-of-use asset (IFRS 16, para. 24): initial lease liability 512,400 + lease payment made at the commencement date 40,000 − lease incentive received 10,000 + initial direct costs 8,600 + dismantling 31,000 = 582,000.","es":""}}],"references":["REF.IFRS16.24"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000145","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000402","tested_point":"VG.IFRS16.000402","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §24","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Nordalys leases a bottling line. The lease provides for {number_of_payments} annual lease payments of {annual_payment}, payable in arrears (at the end of each year). The interest rate implicit in the lease cannot be readily determined; Nordalys's incremental borrowing rate is {borrowing_rate}. Nordalys incurred initial direct costs of {initial_direct_costs}; the estimate of the restoration costs required by the lease, measured under IAS 37, is {restoration_cost} (given). Compute the initial lease liability and then the cost of the right-of-use asset (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"As the implicit rate cannot be readily determined, discounting uses the lessee's incremental borrowing rate (IFRS 16, para. 26). Discount factor for 5 payments in arrears at 6%: 4.212364; lease liability = 50,000 × 4.212364 = 210,618.19, rounded to 210,618. Cost of the right-of-use asset (IFRS 16, para. 24) = 210,618 + 4,000 + 12,000 = 226,618 (no payment in advance, no lease incentive).","es":""},"common_error":{"fr":"","en":"Using the undiscounted total of the lease payments (250,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"50000","unit":"EUR"},{"id":"number_of_payments","value":"5","unit":"UNITS"},{"id":"borrowing_rate","value":"6","unit":"PERCENT"},{"id":"initial_direct_costs","value":"4000","unit":"EUR"},{"id":"restoration_cost","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual lease payment made at year-end","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Number of lease payments","es":""},"value":"5","unit":"UNITS"},{"label":{"fr":"","en":"Lessee's incremental borrowing rate","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Estimated restoration costs (IAS 37)","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Initial lease liability","es":""},"answer":210618,"tolerance":0,"unit":"EUR"},{"id":"ROU_COST","label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"answer":226618,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_COST","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial lease liability","es":""},"value":210618,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":4000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Estimated restoration costs (IAS 37)","es":""},"value":12000,"unit":"EUR"}],"result":226618,"unit":"EUR"}],"rationale":{"fr":"","en":"As the implicit rate cannot be readily determined, discounting uses the lessee's incremental borrowing rate (IFRS 16, para. 26).","es":""},"references":["REF.IFRS16.24","REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000146","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000402","tested_point":"VG.IFRS16.000402","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §24","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"The Calimer clinic leases an imaging device. It pays {number_of_payments} annual lease payments of {annual_payment} in advance (at the start of each year); the first is paid on the commencement date. The interest rate implicit in the lease, which can be readily determined, is {implicit_rate}. Calimer incurred {initial_direct_costs} of initial direct costs and received from the lessor a lease incentive of {incentive_received} at the commencement date. No restoration is required. Compute the initial lease liability and the cost of the right-of-use asset (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"The lease liability covers the lease payments not yet paid at the commencement date, discounted at the implicit rate (IFRS 16, para. 26): the 3 remaining payments, made at the start of years 2 to 4, are discounted over 1, 2 and 3 years. Factor at 4%: 2.775091; liability = 60,000 × 2.775091 = 166,505.46, rounded to 166,505. Cost of the right-of-use asset (IFRS 16, para. 24) = 166,505 + 60,000 (payment made at the commencement date) − 9,000 (lease incentive received) + 5,000 (initial direct costs) = 222,505.","es":""},"common_error":{"fr":"","en":"Discounting all 4 payments in the lease liability.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"60000","unit":"EUR"},{"id":"number_of_payments","value":"4","unit":"UNITS"},{"id":"implicit_rate","value":"4","unit":"PERCENT"},{"id":"initial_direct_costs","value":"5000","unit":"EUR"},{"id":"incentive_received","value":"9000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual lease payment made in advance","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Number of lease payments","es":""},"value":"4","unit":"UNITS"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Lease incentive received","es":""},"value":"9000","unit":"EUR"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Initial lease liability","es":""},"answer":166505,"tolerance":0,"unit":"EUR"},{"id":"ROU_COST","label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"answer":222505,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_LIABILITY","meaning":{"fr":"","en":"Initial lease liability","es":""},"expression":"a * ((1 - 1 / (1 + b)^3) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease payment made in advance","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":4,"unit":"PERCENT"}],"result":166505,"unit":"EUR"}],"rationale":{"fr":"","en":"The lease liability covers the lease payments not yet paid at the commencement date, discounted at the implicit rate (IFRS 16, para. 26): the 3 remaining payments, made at the start of years 2 to 4, are discounted over 1, 2 and 3 years.","es":""},"references":["REF.IFRS16.24","REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000149","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_INITIAL.RIGHT_OF_USE_ASSET"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000149","tested_point":"QST.IFRS16.000149","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000008","section_id":"cost-rule"},"references":["IFRS 16 §24","IFRS 16 §23"],"exercise":{"prompt":{"fr":"","en":"Tessandre leases a hangar for its drone fleet. Commencement-date file: lease liability 450,000; lease payment made to the lessor one month before the commencement date 25,000; amount reimbursed by the lessor to induce Tessandre to sign (lease incentive) 30,000; commission paid to an intermediary to obtain the lease, qualifying as an initial direct cost 7,000; estimated costs of restoring the hangar required by the lease, measured under IAS 37, 16,000 (given). What is the cost of the right-of-use asset?","es":""},"explanation":{"fr":"","en":"The right-of-use asset is measured at cost (IFRS 16, para. 23): 450,000 + 25,000 − 30,000 + 7,000 + 16,000 = 468,000 (IFRS 16, para. 24). The payment made before the commencement date is added, the lease incentive received is deducted, and initial direct costs and restoration are added.","es":""},"common_error":{"fr":"","en":"Treating the lease incentive received as an increase in cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"528,000","es":""},"correct":false,"feedback":{"fr":"","en":"The lease incentive was added instead of deducted (difference of 2 × 30,000).","es":""}},{"id":"B","text":{"fr":"","en":"452,000","es":""},"correct":false,"feedback":{"fr":"","en":"Restoration was omitted: it is part of cost when the lease requires it.","es":""}},{"id":"C","text":{"fr":"","en":"468,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"436,000","es":""},"correct":false,"feedback":{"fr":"","en":"The payment made in advance and the initial direct costs were forgotten.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000150","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000150","tested_point":"QST.IFRS16.000150","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §29"],"exercise":{"prompt":{"fr":"","en":"True or false: after the commencement date, the lessee measures the right-of-use asset under the cost model, unless it applies one of the other models provided for by IFRS 16.","es":""},"explanation":{"fr":"","en":"True. The cost model is the rule after the commencement date; it is set aside only if the lessee applies one of the models in paragraphs 34 and 35 (IAS 40 fair value or IAS 16 revaluation) (IFRS 16, para. 29).","es":""},"common_error":{"fr":"","en":"Thinking that the lessee freely chooses the measurement model of each right-of-use asset.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000151","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000151","tested_point":"QST.IFRS16.000151","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"True or false: when the lease transfers ownership of the underlying asset to the lessee at the end of the lease, the right-of-use asset is depreciated over the lease term, even if the useful life of the asset is longer.","es":""},"explanation":{"fr":"","en":"False. When ownership transfers at the end of the lease (or if the cost of the right-of-use asset reflects the exercise of a purchase option), depreciation runs from the commencement date to the end of the useful life of the underlying asset (IFRS 16, para. 32). The shorter of the lease term and the useful life applies only in the absence of those situations.","es":""},"common_error":{"fr":"","en":"Always using the lease term.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000152","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000152","tested_point":"QST.IFRS16.000152","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §31","IFRS 16 §33"],"exercise":{"prompt":{"fr":"","en":"Orlinde measures its right-of-use assets under the cost model. Which requirements does it apply to depreciate them?","es":""},"explanation":{"fr":"","en":"The lessee applies the depreciation requirements of IAS 16 to depreciate the right-of-use asset, subject to the IFRS 16 rules on the depreciation period (IFRS 16, para. 31). IAS 36 applies separately, to determine whether the right-of-use asset is impaired (IFRS 16, para. 33).","es":""},"common_error":{"fr":"","en":"Confusing depreciation and impairment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Those of IAS 36 on impairment of assets.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 is used for the impairment test, not for computing depreciation.","es":""}},{"id":"B","text":{"fr":"","en":"Those of IAS 38 on intangible assets.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 refers to IAS 16 for the depreciation of the right-of-use asset, not to IAS 38.","es":""}},{"id":"C","text":{"fr":"","en":"Those of IAS 16 on depreciation, subject to the period set by IFRS 16.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None: the lease payments made stand in for depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments reduce the lease liability; the right-of-use asset is depreciated separately.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000153","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000153","tested_point":"QST.IFRS16.000153","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"Pradel leases a hydraulic excavator for a lease term of 6 years. The excavator's useful life is 10 years. The lease does not transfer ownership and contains no purchase option. Over what period is the right-of-use asset depreciated?","es":""},"explanation":{"fr":"","en":"Without a transfer of ownership or a purchase option reflected in cost, the right-of-use asset is depreciated to the earlier of the end of its useful life and the end of the lease term (IFRS 16, para. 32): here 6 years, the excavator being returned to the lessor at the end of the lease.","es":""},"common_error":{"fr":"","en":"Depreciating over the useful life of the underlying asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"10 years, useful life of the excavator","es":""},"correct":false,"feedback":{"fr":"","en":"The useful life applies only when ownership transfers or a purchase option is reflected in cost.","es":""}},{"id":"B","text":{"fr":"","en":"6 years, lease term","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"8 years, average of the two periods","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 provides for no average: the earlier date is used.","es":""}},{"id":"D","text":{"fr":"","en":"No depreciation before the end of the lease","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation runs from the commencement date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000154","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000154","tested_point":"QST.IFRS16.000154","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"Ardoisine leases a rotary printing press for 5 years; the lease provides for the automatic transfer of ownership of the press to Ardoisine at the end of the lease. The useful life of the press is estimated at 8 years. Over what period is the right-of-use asset depreciated from the commencement date?","es":""},"explanation":{"fr":"","en":"When the lease transfers ownership of the underlying asset to the lessee at the end of the lease, depreciation runs from the commencement date to the end of the useful life of the underlying asset (IFRS 16, para. 32): 8 years.","es":""},"common_error":{"fr":"","en":"Depreciating over the lease term despite the transfer of ownership.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"5 years, because only the lease gives the right to use the press","es":""},"correct":false,"feedback":{"fr":"","en":"With a transfer of ownership, Ardoisine will use the press beyond the lease: the useful life applies.","es":""}},{"id":"B","text":{"fr":"","en":"3 years, period of use remaining after the lease","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation runs from the commencement date, not only after the end of the lease.","es":""}},{"id":"C","text":{"fr":"","en":"13 years, sum of the two periods","es":""},"correct":false,"feedback":{"fr":"","en":"The useful life of 8 years already covers the lease period; the periods are not added.","es":""}},{"id":"D","text":{"fr":"","en":"8 years, useful life of the press","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000155","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000155","tested_point":"QST.IFRS16.000155","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §30"],"exercise":{"prompt":{"fr":"","en":"Quintal measures its right-of-use assets under the cost model. Which items enter the carrying amount of a right-of-use asset at the reporting date? (several answers)","es":""},"explanation":{"fr":"","en":"Under the cost model, the right-of-use asset is measured at cost, less accumulated depreciation and accumulated impairment losses, and adjusted for remeasurements of the lease liability (IFRS 16, para. 30). Interest increases the lease liability, not the right-of-use asset, and the cost model excludes any remeasurement to fair value.","es":""},"common_error":{"fr":"","en":"Forgetting the adjustment for remeasurements of the lease liability.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cost of the right-of-use asset determined at the commencement date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Accumulated depreciation, as a deduction.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Interest accrued on the lease liability, as an addition.","es":""},"correct":false,"feedback":{"fr":"","en":"Interest increases the lease liability, not the carrying amount of the right-of-use asset.","es":""}},{"id":"D","text":{"fr":"","en":"Accumulated impairment losses, as a deduction.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Remeasurements of the lease liability, as an adjustment.","es":""},"correct":true},{"id":"F","text":{"fr":"","en":"The difference between the fair value of the underlying asset and the carrying amount, remeasured every year.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost model does not include remeasurement to fair value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000156","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000156","tested_point":"QST.IFRS16.000156","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §33"],"exercise":{"prompt":{"fr":"","en":"The Vireo chain closes one of its leased stores, whose lease still runs for 4 years, and identifies an indication of impairment of the related right-of-use asset. What must it do?","es":""},"explanation":{"fr":"","en":"The lessee applies IAS 36 to determine whether the right-of-use asset is impaired and to account for any impairment loss identified (IFRS 16, para. 33). The lease liability, for its part, remains owed to the lessor and is not reduced by the closure of the store.","es":""},"common_error":{"fr":"","en":"Ignoring the right-of-use asset of a closed site until the end of the lease.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reduce the lease liability by the expected loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The obligation to the lessor remains: any loss relates to the right-of-use asset.","es":""}},{"id":"B","text":{"fr":"","en":"Apply IAS 36 to the right-of-use asset and recognise any impairment loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Wait for the end of the lease: a right-of-use asset is not impaired before its term.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 refers to IAS 36: an impairment loss is recognised as soon as it is identified.","es":""}},{"id":"D","text":{"fr":"","en":"Revalue the right-of-use asset to fair value, with the difference going to equity.","es":""},"correct":false,"feedback":{"fr":"","en":"A fair value revaluation does not respond to an impairment indication; the standard refers to IAS 36.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000157","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000157","tested_point":"QST.IFRS16.000157","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §34","IFRS 16 §29"],"exercise":{"prompt":{"fr":"","en":"The Solvane group measures all its investment property under the IAS 40 fair value model. It leases an office building for 15 years, which it fully sublets to third parties; it is established (given) that this right-of-use asset meets the definition of investment property. How does Solvane measure this right-of-use asset after the commencement date?","es":""},"explanation":{"fr":"","en":"The cost model is the rule, unless the models in paragraphs 34 and 35 apply (IFRS 16, para. 29). A lessee that applies the IAS 40 fair value model to its investment property also applies that model to right-of-use assets that meet the definition of investment property (IFRS 16, para. 34). Solvane therefore measures this right-of-use asset at fair value under IAS 40.","es":""},"common_error":{"fr":"","en":"Applying the cost model to a right-of-use asset that is investment property for a lessee using the fair value model.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under the cost model, like any right-of-use asset, since it does not own the building.","es":""},"correct":false,"feedback":{"fr":"","en":"The cost model here gives way to the fair value model applied to investment property.","es":""}},{"id":"B","text":{"fr":"","en":"Under the IAS 16 revaluation model, applied to the class of buildings.","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 16 revaluation model concerns classes of property, plant and equipment, not a right that meets the definition of investment property.","es":""}},{"id":"C","text":{"fr":"","en":"At its choice, at cost or at fair value, for this right-of-use asset only.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no case-by-case choice: the model applied to investment property extends to this right.","es":""}},{"id":"D","text":{"fr":"","en":"Under the IAS 40 fair value model, like its other investment property.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000158","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000158","tested_point":"QST.IFRS16.000158","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §35"],"exercise":{"prompt":{"fr":"","en":"Belrive applies the IAS 16 revaluation model to its Land and buildings class and the cost model to its vehicles. It holds three right-of-use assets relating to warehouses (Land and buildings class) and two right-of-use assets relating to trucks. Which policy does IFRS 16 allow it?","es":""},"explanation":{"fr":"","en":"When right-of-use assets relate to a class of property, plant and equipment to which the lessee applies the IAS 16 revaluation model, it may elect to apply that model to all the right-of-use assets relating to that class (IFRS 16, para. 35). The election covers all the rights in the class, not an isolated right, and does not concern the trucks, whose class remains at cost.","es":""},"common_error":{"fr":"","en":"Believing that revaluing the class is mandatory for the right-of-use assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Mandatorily revalue its five right-of-use assets, trucks included.","es":""},"correct":false,"feedback":{"fr":"","en":"Revaluation is an option, and it only targets the revalued class: the trucks belong to a class at cost.","es":""}},{"id":"B","text":{"fr":"","en":"Elect to revalue the three warehouse rights, the truck rights remaining at cost.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Revalue only the warehouse right whose market value has risen most.","es":""},"correct":false,"feedback":{"fr":"","en":"The election applies to all the right-of-use assets of the class, not to a selected right.","es":""}},{"id":"D","text":{"fr":"","en":"Measure the three warehouse rights under the IAS 40 fair value model.","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 40 fair value model concerns investment property; the warehouses are here used within the Land and buildings class.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000159","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000404","tested_point":"VG.IFRS16.000404","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §32","IFRS 16 §31"],"exercise":{"prompt":{"fr":"","en":"Ostrade recognised a right-of-use asset for a forklift truck at a cost of {rou_cost}. The lease term is {lease_term} years and the useful life of the forklift is {useful_life} years. The lease does not transfer ownership and contains no purchase option. Ostrade uses the straight-line method (method chosen by the entity). Compute the annual depreciation charge and the carrying amount of the right-of-use asset at the end of the first year.","es":""},"explanation":{"fr":"","en":"The right-of-use asset is depreciated under IAS 16 (IFRS 16, para. 31), over a period limited by IFRS 16: without a transfer of ownership or purchase option, to the earlier of the end of the useful life and the end of the lease (IFRS 16, para. 32), i.e. 4 years. Depreciation = 240,000 / 4 = 60,000; carrying amount at the end of year 1 = 240,000 − 60,000 = 180,000.","es":""},"common_error":{"fr":"","en":"Depreciating over 6 years (charge of 40,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"rou_cost","value":"240000","unit":"EUR"},{"id":"lease_term","value":"4","unit":"YEARS"},{"id":"useful_life","value":"6","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Useful life of the forklift","es":""},"value":"6","unit":"YEARS"}],"steps":[{"id":"ANNUAL_DEPRECIATION","label":{"fr":"","en":"Annual depreciation charge","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT_END_YEAR_1","label":{"fr":"","en":"Carrying amount at the end of year 1","es":""},"answer":180000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_DEPRECIATION","meaning":{"fr":"","en":"Annual depreciation charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease term","es":""},"value":4,"unit":"YEARS"}],"result":60000,"unit":"EUR"},{"step":"CARRYING_AMOUNT_END_YEAR_1","meaning":{"fr":"","en":"Carrying amount at the end of year 1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual depreciation charge","es":""},"value":60000,"unit":"EUR"}],"result":180000,"unit":"EUR"}],"rationale":{"fr":"","en":"The right-of-use asset is depreciated under IAS 16 (IFRS 16, para. 31), over a period limited by IFRS 16: without a transfer of ownership or purchase option, to the earlier of the end of the useful life and the end of the lease (IFRS 16, para. 32), i.e. 4 years.","es":""},"references":["REF.IFRS16.32","REF.IFRS16.31"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000160","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000404","tested_point":"VG.IFRS16.000404","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §32","IFRS 16 §27"],"exercise":{"prompt":{"fr":"","en":"The Galmine laboratory leases a spectrometer for a lease term of {lease_term} years, with a purchase option at the end of the lease that it is reasonably certain to exercise: the exercise price was included in the lease liability and the cost of the right-of-use asset, i.e. {rou_cost}, therefore reflects the exercise of the option. The useful life of the spectrometer is {useful_life} years. Straight-line depreciation (method chosen). Compute the annual depreciation charge and the carrying amount at the end of the second year.","es":""},"explanation":{"fr":"","en":"The exercise price of a purchase option that is reasonably certain to be exercised is among the lease payments included in the lease liability (IFRS 16, para. 27(d)). When the cost of the right-of-use asset reflects the exercise of a purchase option, depreciation runs to the end of the useful life of the underlying asset (IFRS 16, para. 32), i.e. 11 years. Depreciation = 330,000 / 11 = 30,000; carrying amount at the end of year 2 = 330,000 − 2 × 30,000 = 270,000.","es":""},"common_error":{"fr":"","en":"Depreciating over the lease term (charge of 66,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"rou_cost","value":"330000","unit":"EUR"},{"id":"lease_term","value":"5","unit":"YEARS"},{"id":"useful_life","value":"11","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":"330000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Useful life of the spectrometer","es":""},"value":"11","unit":"YEARS"}],"steps":[{"id":"ANNUAL_DEPRECIATION","label":{"fr":"","en":"Annual depreciation charge","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT_END_YEAR_2","label":{"fr":"","en":"Carrying amount at the end of year 2","es":""},"answer":270000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_DEPRECIATION","meaning":{"fr":"","en":"Annual depreciation charge","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":330000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life of the spectrometer","es":""},"value":11,"unit":"YEARS"}],"result":30000,"unit":"EUR"},{"step":"CARRYING_AMOUNT_END_YEAR_2","meaning":{"fr":"","en":"Carrying amount at the end of year 2","es":""},"expression":"a - 2 * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":330000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual depreciation charge","es":""},"value":30000,"unit":"EUR"}],"result":270000,"unit":"EUR"}],"rationale":{"fr":"","en":"The exercise price of a purchase option that is reasonably certain to be exercised is among the lease payments included in the lease liability (IFRS 16, para. 27(d)).","es":""},"references":["REF.IFRS16.32","REF.IFRS16.27"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000161","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000404","tested_point":"VG.IFRS16.000404","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §32","IFRS 16 §31","IFRS 16 §30"],"exercise":{"prompt":{"fr":"","en":"Pellane, whose reporting period ends on 31 December, leases computer servers with a commencement date of 1 April 20X1. Cost of the right-of-use asset: {rou_cost}; lease term: {lease_term_months} months; useful life of the servers: {useful_life} years. No transfer of ownership and no purchase option. Pellane depreciates on a straight-line basis, pro rata to the months of use (method chosen). Compute the 20X1 depreciation charge and the carrying amount at 31 December 20X1.","es":""},"explanation":{"fr":"","en":"The depreciation period is the shorter of the lease term and the useful life, absent a transfer of ownership or purchase option (IFRS 16, para. 32): 36 months. Under the IAS 16 straight-line method chosen (IFRS 16, para. 31): 180,000 / 36 = 5,000 per month; 9 months from April to December, i.e. 45,000 for 20X1. Carrying amount under the cost model (IFRS 16, para. 30): 180,000 − 45,000 = 135,000.","es":""},"common_error":{"fr":"","en":"Recognising a full year (60,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"rou_cost","value":"180000","unit":"EUR"},{"id":"lease_term_months","value":"36","unit":"MONTHS"},{"id":"useful_life","value":"8","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"36","unit":"MONTHS"},{"label":{"fr":"","en":"Useful life of the servers","es":""},"value":"8","unit":"YEARS"}],"steps":[{"id":"DEPRECIATION_20X1","label":{"fr":"","en":"Depreciation charge for 20X1","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT_31_12_20X1","label":{"fr":"","en":"Carrying amount at 31 December 20X1","es":""},"answer":135000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYING_AMOUNT_31_12_20X1","meaning":{"fr":"","en":"Carrying amount at 31 December 20X1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Depreciation charge for 20X1","es":""},"value":45000,"unit":"EUR"}],"result":135000,"unit":"EUR"}],"rationale":{"fr":"","en":"The depreciation period is the shorter of the lease term and the useful life, absent a transfer of ownership or purchase option (IFRS 16, para. 32): 36 months.","es":""},"references":["REF.IFRS16.32","REF.IFRS16.31","REF.IFRS16.30"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000162","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000405","tested_point":"VG.IFRS16.000405","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §30","IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"Tavelin depreciates on a straight-line basis over the lease term ({lease_term} years, shorter than the useful life) a right-of-use asset with a cost of {rou_cost}. After {years_elapsed} years of depreciation, the lease liability is remeasured upwards by {remeasurement_increase} (given amount, resulting from a revision of the lease payments). Case assumption: Tavelin allocates the new carrying amount on a straight-line basis over the 3 remaining years. Compute the carrying amount of the right-of-use asset after the adjustment and the depreciation charge for year 3.","es":""},"explanation":{"fr":"","en":"Under the cost model, the right-of-use asset is measured at cost less accumulated depreciation and adjusted for remeasurements of the lease liability (IFRS 16, para. 30). Depreciation over the lease term (IFRS 16, para. 32): 200,000 / 5 = 40,000 per year; after 2 years, carrying amount = 200,000 − 80,000 = 120,000. Adjustment: 120,000 + 15,000 = 135,000. Under the case assumption, depreciation for year 3 = 135,000 / 3 = 45,000.","es":""},"common_error":{"fr":"","en":"Recognising the remeasurement in profit or loss instead of adjusting the right-of-use asset.","es":""},"format":"CALCULATION","placeholders":[{"id":"rou_cost","value":"200000","unit":"EUR"},{"id":"lease_term","value":"5","unit":"YEARS"},{"id":"years_elapsed","value":"2","unit":"YEARS"},{"id":"remeasurement_increase","value":"15000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Period already depreciated","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Upward remeasurement of the lease liability","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_AFTER_ADJUSTMENT","label":{"fr":"","en":"Carrying amount after the adjustment","es":""},"answer":135000,"tolerance":0,"unit":"EUR"},{"id":"DEPRECIATION_YEAR_3","label":{"fr":"","en":"Depreciation charge for year 3","es":""},"answer":45000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEPRECIATION_YEAR_3","meaning":{"fr":"","en":"Depreciation charge for year 3","es":""},"expression":"a / 3","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount after the adjustment","es":""},"value":135000,"unit":"EUR"}],"result":45000,"unit":"EUR"}],"rationale":{"fr":"","en":"Under the cost model, the right-of-use asset is measured at cost less accumulated depreciation and adjusted for remeasurements of the lease liability (IFRS 16, para. 30).","es":""},"references":["REF.IFRS16.30","REF.IFRS16.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000163","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000405","tested_point":"VG.IFRS16.000405","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §30","IFRS 16 §32"],"exercise":{"prompt":{"fr":"","en":"The Corbelle firm leases premises for a lease term of {lease_term} years, shorter than their useful life; the right-of-use asset, with a cost of {rou_cost}, is depreciated on a straight-line basis over that term. After {years_elapsed} years, a decrease in future lease payments leads to a reduction of the lease liability by {remeasurement_decrease} (given amount). The firm assumes a straight-line allocation of the new balance over the remaining term. Determine the adjusted carrying amount of the right-of-use asset and the depreciation charge for the fourth year.","es":""},"explanation":{"fr":"","en":"Depreciation over the lease term, shorter than the useful life (IFRS 16, para. 32): 150,000 / 6 = 25,000 per year; after 3 years, carrying amount = 150,000 − 75,000 = 75,000. The downward remeasurement of the lease liability adjusts the right-of-use asset (IFRS 16, para. 30): 75,000 − 9,000 = 66,000. Under the assumption made, depreciation for year 4 = 66,000 / 3 = 22,000.","es":""},"common_error":{"fr":"","en":"Recognising income of 9,000 in profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"rou_cost","value":"150000","unit":"EUR"},{"id":"lease_term","value":"6","unit":"YEARS"},{"id":"years_elapsed","value":"3","unit":"YEARS"},{"id":"remeasurement_decrease","value":"9000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the right-of-use asset","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"6","unit":"YEARS"},{"label":{"fr":"","en":"Years elapsed","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Reduction of the lease liability","es":""},"value":"9000","unit":"EUR"}],"steps":[{"id":"CARRYING_AMOUNT_AFTER_ADJUSTMENT","label":{"fr":"","en":"Adjusted carrying amount","es":""},"answer":66000,"tolerance":0,"unit":"EUR"},{"id":"DEPRECIATION_YEAR_4","label":{"fr":"","en":"Depreciation charge for year 4","es":""},"answer":22000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEPRECIATION_YEAR_4","meaning":{"fr":"","en":"Depreciation charge for year 4","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Adjusted carrying amount","es":""},"value":66000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Years elapsed","es":""},"value":3,"unit":"YEARS"}],"result":22000,"unit":"EUR"}],"references":["REF.IFRS16.30","REF.IFRS16.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000166","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000166","tested_point":"QST.IFRS16.000166","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"rou-cost-model"},"references":["IFRS 16 §33","IFRS 16 §34","IFRS 16 §35"],"exercise":{"prompt":{"fr":"","en":"The consolidation department of the Arvenne group is preparing a memo on the measurement of right-of-use assets after the commencement date. Which statements are correct? (several answers)","es":""},"explanation":{"fr":"","en":"The lessee applies IAS 36 to the impairment of the right-of-use asset (IFRS 16, para. 33). The IAS 40 fair value model, if applied to investment property, extends to right-of-use assets that meet its definition (IFRS 16, para. 34). For a class of property, plant and equipment revalued under IAS 16, the lessee may elect to apply revaluation to all the right-of-use assets of that class (IFRS 16, para. 35): it is an option, limited to that class, and not a free choice right by right.","es":""},"common_error":{"fr":"","en":"Confusing the requirement linked to IAS 40 with the option linked to IAS 16.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A right-of-use asset is subject to IAS 36 to determine whether it is impaired.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The lessee may measure any right-of-use asset at fair value, on a case-by-case basis.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no case-by-case choice: only the models in paragraphs 34 and 35 depart from the cost model.","es":""}},{"id":"C","text":{"fr":"","en":"If the lessee applies the IAS 40 fair value model to its investment property, it also applies it to right-of-use assets that meet that definition.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The IAS 16 revaluation model may be elected for all right-of-use assets relating to a class that the lessee revalues.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The revaluation model is mandatory for all right-of-use assets once a class of property, plant and equipment is revalued.","es":""},"correct":false,"feedback":{"fr":"","en":"Revaluation is an option, and only for the rights relating to the revalued class.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000167","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000167","tested_point":"QST.IFRS16.000167","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §36"],"exercise":{"prompt":{"fr":"","en":"True or false: after the commencement date, the lease liability is increased by interest and reduced by the lease payments made, and it is remeasured upon a reassessment or a lease modification.","es":""},"explanation":{"fr":"","en":"True. After the commencement date, the lessee increases the carrying amount of the lease liability by interest, reduces it by the lease payments made and remeasures it to reflect reassessments, modifications or revised in-substance fixed payments (IFRS 16, para. 36).","es":""},"common_error":{"fr":"","en":"Reducing the lease liability by the full payment without adding interest.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000168","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000168","tested_point":"QST.IFRS16.000168","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §37"],"exercise":{"prompt":{"fr":"","en":"True or false: each year, interest on the lease liability is computed by applying the discount rate to the initial amount of the lease liability.","es":""},"explanation":{"fr":"","en":"False. Interest for each period is the amount that produces a constant periodic rate on the remaining balance of the lease liability (IFRS 16, para. 37). When the payments exceed the interest, the balance falls and the interest charge decreases from one period to the next.","es":""},"common_error":{"fr":"","en":"Computing interest each year on the initial liability.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000169","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000169","tested_point":"QST.IFRS16.000169","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §38"],"exercise":{"prompt":{"fr":"","en":"Ramberte leases retail premises: fixed annual payment, plus a variable payment equal to 3% of the store's revenue, not included in the lease liability. The variable payment due on 20X1 sales amounts to 18,000. No standard requires it to be included in the carrying amount of another asset. How should it be treated?","es":""},"explanation":{"fr":"","en":"After the commencement date, variable lease payments not included in the lease liability are recognised in profit or loss in the period in which the event or condition that triggers them occurs, unless included in the carrying amount of another asset under other standards (IFRS 16, para. 38). The 18,000 payment is triggered by 20X1 sales: it is a 20X1 expense.","es":""},"common_error":{"fr":"","en":"Capitalising sales-based variable lease payments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Add it to the lease liability and the right-of-use asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A sales-based variable payment is not part of the lease liability; it does not remeasure it.","es":""}},{"id":"B","text":{"fr":"","en":"Spread it over the remaining lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense belongs to the period of the triggering event, without spreading.","es":""}},{"id":"C","text":{"fr":"","en":"Charge it against the lease liability as a reduction of principal.","es":""},"correct":false,"feedback":{"fr":"","en":"This payment was never included in the lease liability: it cannot reduce its principal.","es":""}},{"id":"D","text":{"fr":"","en":"Recognise it in profit or loss for 20X1, the period of the sales that trigger it.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000170","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000170","tested_point":"QST.IFRS16.000170","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §38","IFRS 16 §36"],"exercise":{"prompt":{"fr":"","en":"Liseron, lessee of a store lease, pays a fixed annual lease payment included in the lease liability and a variable top-up based on its revenue, not included. No amount is included in another asset. Among the following items relating to the lease liability and payments, which are recognised as expenses of the year? (several answers)","es":""},"explanation":{"fr":"","en":"The lessee recognises in profit or loss the interest on the lease liability and the variable lease payments not included in it (IFRS 16, para. 38). The fixed payment made reduces the lease liability (IFRS 16, para. 36): its principal portion is not an expense, and expensing it in addition to depreciation would count the cost of the lease twice.","es":""},"common_error":{"fr":"","en":"Expensing the full fixed payment in addition to depreciation.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The part of the fixed payment that repays the principal of the lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Repaying principal reduces the lease liability; it is not an expense.","es":""}},{"id":"B","text":{"fr":"","en":"The interest for the year on the lease liability.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The full fixed annual payment, in addition to depreciation of the right-of-use asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The fixed payment is already handled through the lease liability (interest and principal) and the depreciation of the right-of-use asset.","es":""}},{"id":"D","text":{"fr":"","en":"The variable top-up based on the year's revenue.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000171","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000407","tested_point":"VG.IFRS16.000407","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §36","IFRS 16 §37"],"exercise":{"prompt":{"fr":"","en":"At 1 January 20X1, the commencement date, Lorvane's lease liability amounts to {opening_liability} (given), computed at a rate of {discount_rate}. Annual lease payments of {annual_payment} are paid in arrears, on 31 December. Compute the interest expense for 20X1 and the lease liability at 31 December 20X1 after payment.","es":""},"explanation":{"fr":"","en":"Interest is computed at a constant rate on the remaining balance of the lease liability (IFRS 16, para. 37): 180,000 × 5% = 9,000. The liability is increased by interest and reduced by the payment made (IFRS 16, para. 36): 180,000 + 9,000 − 41,575 = 147,425.","es":""},"common_error":{"fr":"","en":"Deducting the payment before computing interest.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_liability","value":"180000","unit":"EUR"},{"id":"discount_rate","value":"5","unit":"PERCENT"},{"id":"annual_payment","value":"41575","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lease liability at 1 January 20X1","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Annual lease payment made on 31 December","es":""},"value":"41575","unit":"EUR"}],"steps":[{"id":"INTEREST_20X1","label":{"fr":"","en":"Interest expense for 20X1","es":""},"answer":9000,"tolerance":0,"unit":"EUR"},{"id":"LIABILITY_31_12_20X1","label":{"fr":"","en":"Lease liability at 31 December 20X1","es":""},"answer":147425,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_20X1","meaning":{"fr":"","en":"Interest expense for 20X1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability at 1 January 20X1","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":5,"unit":"PERCENT"}],"result":9000,"unit":"EUR","rationale":{"fr":"","en":"Interest is computed at a constant rate on the remaining balance of the lease liability (IFRS 16, para. 37): 180,000 × 5% = 9,000.","es":""}},{"step":"LIABILITY_31_12_20X1","meaning":{"fr":"","en":"Lease liability at 31 December 20X1","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability at 1 January 20X1","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest expense for 20X1","es":""},"value":9000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual lease payment made on 31 December","es":""},"value":41575,"unit":"EUR"}],"result":147425,"unit":"EUR","rationale":{"fr":"","en":"The liability is increased by interest and reduced by the payment made (IFRS 16, para. 36): 180,000 + 9,000 − 41,575 = 147,425.","es":""}}],"references":["REF.IFRS16.36","REF.IFRS16.37"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS16.000172","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000407","tested_point":"VG.IFRS16.000407","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §37","IFRS 16 §36"],"exercise":{"prompt":{"fr":"","en":"The Dunelle cooperative leases a cold room from 1 January 20X1. The initial lease liability is {initial_liability} (given) at a discount rate of {discount_rate}; each lease payment of {annual_payment} is made at year-end, on 31 December. Determine the interest for 20X2 and the balance of the lease liability at 31 December 20X2.","es":""},"explanation":{"fr":"","en":"Interest at a constant periodic rate on the remaining balance (IFRS 16, para. 37), then deduction of the payments made (IFRS 16, para. 36). 20X1: 250,000 × 4% = 10,000; balance = 250,000 + 10,000 − 56,000 = 204,000. 20X2: 204,000 × 4% = 8,160; balance = 204,000 + 8,160 − 56,000 = 156,160.","es":""},"common_error":{"fr":"","en":"Computing 20X2 interest on the initial liability (10,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"initial_liability","value":"250000","unit":"EUR"},{"id":"discount_rate","value":"4","unit":"PERCENT"},{"id":"annual_payment","value":"56000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Initial lease liability","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Lease payment made each 31 December","es":""},"value":"56000","unit":"EUR"}],"steps":[{"id":"INTEREST_20X2","label":{"fr":"","en":"Interest for 20X2","es":""},"answer":8160,"tolerance":0,"unit":"EUR"},{"id":"LIABILITY_31_12_20X2","label":{"fr":"","en":"Lease liability at 31 December 20X2","es":""},"answer":156160,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_20X2","meaning":{"fr":"","en":"Interest for 20X2","es":""},"expression":"(a + (a * b) - c) * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial lease liability","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":4,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Lease payment made each 31 December","es":""},"value":56000,"unit":"EUR"}],"result":8160,"unit":"EUR"},{"step":"LIABILITY_31_12_20X2","meaning":{"fr":"","en":"Lease liability at 31 December 20X2","es":""},"expression":"(a + (a * b) - c) + d - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial lease liability","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":4,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Lease payment made each 31 December","es":""},"value":56000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Interest for 20X2","es":""},"value":8160,"unit":"EUR"}],"result":156160,"unit":"EUR"}],"rationale":{"fr":"","en":"Interest at a constant periodic rate on the remaining balance (IFRS 16, para. 37), then deduction of the payments made (IFRS 16, para. 36).","es":""},"references":["REF.IFRS16.37","REF.IFRS16.36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000173","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000408","tested_point":"VG.IFRS16.000408","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §37","IFRS 16 §36"],"exercise":{"prompt":{"fr":"","en":"Ferlane leases an industrial furnace from 1 January 20X1 (commencement date, year-end 31 December). The 4 annual lease payments of {annual_payment} are paid in advance, each 1 January; the first was paid at the commencement date. The lease liability, which covers the 3 remaining payments, amounts to {liability_after_first_payment} (given, rounded), at a rate of {discount_rate}. Compute the interest for 20X1 and the lease liability at 31 December 20X1 (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"Interest is computed on the remaining balance of the lease liability during the period (IFRS 16, para. 37): 118,094 × 7% = 8,266.58, rounded to 8,267. No payment is made during 20X1 after the commencement date: the next payment falls on 1 January 20X2. The liability at 31 December 20X1 is therefore 118,094 + 8,267 = 126,361 (IFRS 16, para. 36); it will be brought down to 81,361 by the payment of 1 January 20X2.","es":""},"common_error":{"fr":"","en":"Deducting the 20X2 payment before computing 20X1 interest (interest of 5,117).","es":""},"format":"CALCULATION","placeholders":[{"id":"liability_after_first_payment","value":"118094","unit":"EUR"},{"id":"discount_rate","value":"7","unit":"PERCENT"},{"id":"annual_payment","value":"45000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lease liability at 1 January 20X1 (after the first payment)","es":""},"value":"118094","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"7","unit":"PERCENT"},{"label":{"fr":"","en":"Annual lease payment made each 1 January","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"INTEREST_20X1","label":{"fr":"","en":"Interest for 20X1","es":""},"answer":8267,"tolerance":0,"unit":"EUR"},{"id":"LIABILITY_31_12_20X1","label":{"fr":"","en":"Lease liability at 31 December 20X1","es":""},"answer":126361,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_20X1","meaning":{"fr":"","en":"Interest for 20X1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability at 1 January 20X1 (after the first payment)","es":""},"value":118094,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":7,"unit":"PERCENT"}],"result":8267,"unit":"EUR","rationale":{"fr":"","en":"Interest is computed on the remaining balance of the lease liability during the period (IFRS 16, para. 37): 118,094 × 7% = 8,266.58, rounded to 8,267.","es":""}},{"step":"LIABILITY_31_12_20X1","meaning":{"fr":"","en":"Lease liability at 31 December 20X1","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability at 1 January 20X1 (after the first payment)","es":""},"value":118094,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest for 20X1","es":""},"value":8267,"unit":"EUR"}],"result":126361,"unit":"EUR"}],"references":["REF.IFRS16.37","REF.IFRS16.36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000174","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000408","tested_point":"VG.IFRS16.000408","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":360,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §37","IFRS 16 §36","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"The Valmeuse association leases a minibus from 1 January 20X1 (year-end 31 December). The lease provides for {number_of_payments} annual lease payments of {annual_payment} payable in advance each 1 January, the first at the commencement date. The interest rate implicit in the lease, which can be readily determined, is {implicit_rate}. Rounding each amount to the nearest euro, compute the initial lease liability, the interest for 20X2 and the lease liability at 31 December 20X2.","es":""},"explanation":{"fr":"","en":"Initial liability: present value of the 3 lease payments not yet paid, at the implicit rate (IFRS 16, para. 26): 30,000 × 2.723248 = 81,697.44, rounded to 81,697. Then interest on the remaining balance (IFRS 16, para. 37) and payments as deductions (IFRS 16, para. 36). 20X1: 81,697 × 5% = 4,085; balance at 31 December 20X1 = 85,782. On 1 January 20X2, payment of 30,000: balance 55,782. 20X2: 55,782 × 5% = 2,789; balance at 31 December 20X2 = 58,571. Check: 58,571 − 30,000 = 28,571; 28,571 × 5% = 1,429; 28,571 + 1,429 = 30,000, the last payment.","es":""},"common_error":{"fr":"","en":"Discounting the 4 payments as if paid in arrears (106,379) or including the payment already made at the commencement date (111,697).","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"30000","unit":"EUR"},{"id":"number_of_payments","value":"4","unit":"UNITS"},{"id":"implicit_rate","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual lease payment made in advance","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Number of lease payments","es":""},"value":"4","unit":"UNITS"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"INITIAL_LIABILITY","label":{"fr":"","en":"Initial lease liability","es":""},"answer":81697,"tolerance":0,"unit":"EUR"},{"id":"INTEREST_20X2","label":{"fr":"","en":"Interest for 20X2","es":""},"answer":2789,"tolerance":0,"unit":"EUR"},{"id":"LIABILITY_31_12_20X2","label":{"fr":"","en":"Lease liability at 31 December 20X2","es":""},"answer":58571,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INITIAL_LIABILITY","meaning":{"fr":"","en":"Initial lease liability","es":""},"expression":"a * ((1 - 1 / (1 + b)^3) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual lease payment made in advance","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":5,"unit":"PERCENT"}],"result":81697,"unit":"EUR","rationale":{"fr":"","en":"Initial liability: present value of the 3 lease payments not yet paid, at the implicit rate (IFRS 16, para. 26): 30,000 × 2.723248 = 81,697.44, rounded to 81,697.","es":""}}],"references":["REF.IFRS16.37","REF.IFRS16.36","REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000177","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY","IFRS16.LESSEE_SUBSEQUENT.RIGHT_OF_USE_ASSET"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000177","tested_point":"QST.IFRS16.000177","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §36","IFRS 16 §38","IFRS 16 §31"],"exercise":{"prompt":{"fr":"","en":"For 20X1, the accountant of Calderis recorded three entries on a lease (opening lease liability 220,000, rate 5%, lease payment of 52,000 paid on 31 December): (1) depreciation of the right-of-use asset of 40,000; (2) debit interest expense, credit lease liability 11,000; (3) debit lease expense, credit cash 52,000. Which entry is wrong?","es":""},"explanation":{"fr":"","en":"The right-of-use asset is depreciated under IAS 16 (IFRS 16, para. 31): entry (1) is sound. Interest of 220,000 × 5% = 11,000 is an expense (IFRS 16, para. 38), on the opening balance since the payment is made at year-end: entry (2) is correct. However, the payment made reduces the lease liability (IFRS 16, para. 36): debiting it to expense counts the cost of the lease twice (depreciation + payment) and leaves the liability overstated by 52,000. Correction: debit lease liability 52,000, credit cash 52,000.","es":""},"common_error":{"fr":"","en":"Expensing the full lease payment in addition to depreciation of the right-of-use asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Entry (1): a right-of-use asset is not depreciated.","es":""},"correct":false,"feedback":{"fr":"","en":"The right-of-use asset is indeed depreciated under IAS 16: entry (1) is correct.","es":""}},{"id":"B","text":{"fr":"","en":"Entry (2): interest should be computed on the balance after payment.","es":""},"correct":false,"feedback":{"fr":"","en":"As the payment is made at year-end, interest runs on the opening balance: 11,000 is correct.","es":""}},{"id":"C","text":{"fr":"","en":"Entry (3): the payment made must be debited to the lease liability.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None: all three entries are correct.","es":""},"correct":false,"feedback":{"fr":"","en":"Entry (3) doubles the expense and leaves the lease liability overstated.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000178","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000178","tested_point":"QST.IFRS16.000178","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §38","IFRS 16 §37","IFRS 16 §36"],"exercise":{"prompt":{"fr":"","en":"Estivale operates a leased boutique. At 1 January 20X1, the lease liability is 400,000 at a rate of 5%; the fixed lease payment of 90,000 is paid on 31 December. The lease also provides for a variable payment equal to 2% of the boutique's revenue, not included in the lease liability; 20X1 revenue is 1,300,000. No amount is included in another asset. State the 20X1 expenses relating to the lease liability and the variable payments (excluding depreciation of the right-of-use asset) and the lease liability at 31 December 20X1.","es":""},"explanation":{"fr":"","en":"Interest at a constant rate on the remaining balance (IFRS 16, para. 37): 400,000 × 5% = 20,000. Variable payment not included in the lease liability, recognised in profit or loss in the period of the sales that trigger it (IFRS 16, para. 38): 1,300,000 × 2% = 26,000. Expenses: 20,000 + 26,000 = 46,000. Lease liability (IFRS 16, para. 36): 400,000 + 20,000 − 90,000 = 330,000; the variable payment does not change it.","es":""},"common_error":{"fr":"","en":"Charging the variable payment against the lease liability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Expenses: 20,000; lease liability: 330,000","es":""},"correct":false,"feedback":{"fr":"","en":"The variable payment of 26,000, not included in the lease liability, is also a 20X1 expense.","es":""}},{"id":"B","text":{"fr":"","en":"Expenses: 46,000; lease liability: 330,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Expenses: 46,000; lease liability: 304,000","es":""},"correct":false,"feedback":{"fr":"","en":"The variable payment was never included in the lease liability: it does not reduce it.","es":""}},{"id":"D","text":{"fr":"","en":"Expenses: 116,000; lease liability: 400,000","es":""},"correct":false,"feedback":{"fr":"","en":"The fixed payment reduces the lease liability; expensing it ignores interest and wrongly leaves the liability unchanged.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000179","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.LEASE_LIABILITY"],"dimension":"ANALYSIS","context":"V1_QST.IFRS16.000179","tested_point":"QST.IFRS16.000179","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000009","section_id":"liability-rule"},"references":["IFRS 16 §37"],"exercise":{"prompt":{"fr":"","en":"Norvelle has a lease liability of 200,000 at 1 January 20X1, at a rate of 5%, and pays 46,000 every 31 December. It recognised interest of 10,000 in 20X1, and again 10,000 in 20X2, applying 5% to the initial liability. Which finding is correct?","es":""},"explanation":{"fr":"","en":"Interest for each period produces a constant periodic rate on the remaining balance of the lease liability (IFRS 16, para. 37). Balance at 31 December 20X1: 200,000 + 10,000 − 46,000 = 164,000; 20X2 interest: 164,000 × 5% = 8,200. Interest for 20X2 is therefore overstated by 1,800.","es":""},"common_error":{"fr":"","en":"Applying the rate to the initial liability every year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No error: annual interest is fixed once and for all at the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is constant, but it applies to a falling balance: interest decreases each year.","es":""}},{"id":"B","text":{"fr":"","en":"20X2 interest is computed on the remaining balance of 164,000, i.e. 8,200.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"20X2 interest is computed on the total lease payments still due.","es":""},"correct":false,"feedback":{"fr":"","en":"The base is the carrying amount of the liability, not the nominal total of the remaining payments.","es":""}},{"id":"D","text":{"fr":"","en":"20X2 interest is computed at a rate revised at the end of 20X1, otherwise it is wrong.","es":""},"correct":false,"feedback":{"fr":"","en":"The discount rate is revised only in reassessment or modification situations; there are none here.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000180","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000180","tested_point":"QST.IFRS16.000180","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"remeasurement-rule"},"references":["IFRS 16 §40","IFRS 16 §41","IFRS 16 §42","IFRS 16 §43"],"exercise":{"prompt":{"fr":"","en":"Orvane leases a warehouse. After the commencement date, several events change the expected lease payments. In which of these cases must Orvane remeasure its lease liability by discounting the revised lease payments using a revised discount rate?","es":""},"explanation":{"fr":"","en":"A change in the lease term, such as the exercise of an extension option not previously included, requires the revised lease payments to be discounted using a revised rate (IFRS 16, para. 40). That rate is the interest rate implicit in the lease for the remainder of the term if it can be readily determined, otherwise the lessee's incremental borrowing rate at the date of reassessment (IFRS 16, para. 41). Changes arising from an index or from a residual value guarantee are remeasured using an unchanged rate (IFRS 16, para. 42 and 43).","es":""},"common_error":{"fr":"","en":"Keeping the original rate after an extension of the lease term.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rent is increased under the clause indexing it to a consumer price index.","es":""},"correct":false,"feedback":{"fr":"","en":"A change arising from an index is remeasured using an unchanged discount rate; only a floating interest rate would justify a revised rate.","es":""}},{"id":"B","text":{"fr":"","en":"The amount Orvane expects to pay under a residual value guarantee decreases.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the amount expected under a residual value guarantee is remeasured using an unchanged rate.","es":""}},{"id":"C","text":{"fr":"","en":"Orvane exercises an extension option that had not been included in the lease term.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None: the rate set at the commencement date applies in all cases until the end of the lease, whatever the cause of the remeasurement.","es":""},"correct":false,"feedback":{"fr":"","en":"The initial rate is not frozen: a change in the lease term or in the assessment of a purchase option requires a revised rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000181","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000181","tested_point":"QST.IFRS16.000181","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"remeasurement-rule"},"references":["IFRS 16 §40","IFRS 16 §42","IFRS 16 §43"],"exercise":{"prompt":{"fr":"","en":"The Talvio group reviews its leases at year end. In which situations is the lease liability remeasured using an unchanged discount rate? (several answers)","es":""},"explanation":{"fr":"","en":"The rate is unchanged when the remeasurement results from a change in the amount expected under a residual value guarantee or from a change in payments resulting from an index or a rate (IFRS 16, para. 42 and 43). Exception: if the change results from a floating interest rate, the lessee uses a revised rate reflecting that change (IFRS 16, para. 43). A change in the lease term or in the assessment of a purchase option also requires a revised rate (IFRS 16, para. 40).","es":""},"common_error":{"fr":"","en":"Treating payments indexed to a floating interest rate like payments indexed to a price index.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Talvio becomes reasonably certain to exercise a purchase option it had not taken into account.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the assessment of a purchase option requires a revised rate.","es":""}},{"id":"B","text":{"fr":"","en":"The amount expected under a residual value guarantee increases.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The payments of a lease indexed to a floating market interest rate change because that rate changes.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in payments resulting from a floating interest rate leads to a revised rate reflecting that change.","es":""}},{"id":"D","text":{"fr":"","en":"The payments for a retail unit are adjusted, with immediate effect, to a construction cost index.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The lease term is shortened because Talvio exercises a termination option not reflected in the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the lease term requires a revised rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000182","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000182","tested_point":"QST.IFRS16.000182","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"remeasurement-rule"},"references":["IFRS 16 §42","IFRS 16 §43"],"exercise":{"prompt":{"fr":"","en":"Brévia's office lease provides for an annual rent review based on a published index, applicable on each 1 January. The index published in October 20X2 announces a rent increase from 1 January 20X3. On which date does Brévia remeasure its lease liability to reflect this increase?","es":""},"explanation":{"fr":"","en":"For payments that vary with an index, the lease liability is remeasured only when the cash flows actually change, that is when the rent adjustment takes effect; the revised payments for the remaining term are based on the revised contractual payments (IFRS 16, para. 42). The discount rate is unchanged, as the change does not result from a floating interest rate (IFRS 16, para. 43).","es":""},"common_error":{"fr":"","en":"Projecting future index levels into the lease liability instead of waiting for the effective date of each review.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As soon as the index is published in October 20X2, also estimating the reviews of the following years.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessee anticipates neither the effective date nor future index levels: it remeasures when cash flows change, on the revised contractual payments.","es":""}},{"id":"B","text":{"fr":"","en":"On 1 January 20X3, when the rent adjustment takes effect, based on the revised rent for the remaining term.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On 31 December 20X2, the reporting date, applying the incremental borrowing rate at that date.","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting date does not trigger the remeasurement, and a change arising from an index does not justify a revised rate.","es":""}},{"id":"D","text":{"fr":"","en":"On no date: indexed payments remain measured with the index at the commencement date until the end of the lease.","es":""},"correct":false,"feedback":{"fr":"","en":"Indexed payments are remeasured when the cash flows change; they are not frozen at the initial index.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000183","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT","IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000501","tested_point":"VG.IFRS16.000501","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §39","IFRS 16 §40","IFRS 16 §41","IFRS 16 §21"],"exercise":{"prompt":{"fr":"","en":"Calvène leases a workshop; the annual payment of {annual_payment} is paid at the end of each year. At 1 January 20X4, {remaining_years} payments remain and the lease liability amounts to {old_liability} (original rate {original_rate}). On that day, Calvène exercises an extension option of {extension_years} years, at the same rent, which was not included in the lease term. The interest rate implicit in the lease cannot be readily determined; Calvène's incremental borrowing rate at that date is {revised_rate}. Compute the remeasured lease liability and the adjustment to the right-of-use asset (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"Exercising an option not previously included changes the lease term (IFRS 16, para. 21); the liability is remeasured by discounting the revised lease payments using a revised rate, here the incremental borrowing rate as no implicit rate can be readily determined (IFRS 16, para. 40 and 41). Revised payments: 5 payments of 50,000 made at year end. Annuity factor at 6% over 5 years: 4.212364; 50,000 × 4.212364 = 210,618 (rounded). Difference: 210,618 − 92,971 = 117,647, added to the right-of-use asset and not recognised in profit or loss (IFRS 16, para. 39).","es":""},"common_error":{"fr":"","en":"Discounting the revised payments at the original rate of 5%, which gives 216,474.","es":""},"format":"CALCULATION","placeholders":[{"id":"old_liability","value":"92971","unit":"EUR"},{"id":"annual_payment","value":"50000","unit":"EUR"},{"id":"remaining_years","value":"2","unit":"YEARS"},{"id":"extension_years","value":"3","unit":"YEARS"},{"id":"original_rate","value":"5","unit":"PERCENT"},{"id":"revised_rate","value":"6","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Lease liability before remeasurement","es":""},"value":"92971","unit":"EUR"},{"label":{"fr":"","en":"Annual payment made at year end","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Number of payments remaining before the extension","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Length of the extension (years)","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Original discount rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Incremental borrowing rate at the reassessment date","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"REVISED_LIABILITY","label":{"fr":"","en":"Remeasured lease liability","es":""},"answer":210618,"tolerance":0,"unit":"EUR"},{"id":"ROU_ADJUSTMENT","label":{"fr":"","en":"Increase in the right-of-use asset","es":""},"answer":117647,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_ADJUSTMENT","meaning":{"fr":"","en":"Increase in the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured lease liability","es":""},"value":210618,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before remeasurement","es":""},"value":92971,"unit":"EUR"}],"result":117647,"unit":"EUR","rationale":{"fr":"","en":"Difference: 210,618 − 92,971 = 117,647, added to the right-of-use asset and not recognised in profit or loss (IFRS 16, para. 39).","es":""}}],"references":["REF.IFRS16.39","REF.IFRS16.40","REF.IFRS16.41","REF.IFRS16.21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000184","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT","IFRS16.LEASE_TERM.DETERMINATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000501","tested_point":"VG.IFRS16.000501","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000006","section_id":"term-rule"},"references":["IFRS 16 §39","IFRS 16 §40","IFRS 16 §41","IFRS 16 §20"],"exercise":{"prompt":{"fr":"","en":"The carrier Nordelis leases a logistics platform ({yearly_rent} per year, paid at year end). At the end of 20X5, after significant leasehold improvements decided by Nordelis and not anticipated at the outset, management becomes reasonably certain to exercise the {option_years} years-year extension option at the same rent, previously excluded from the lease term. {payments_left} years non-cancellable payments remain; the lease liability is {liability_before} (initial rate {initial_rate}). The interest rate implicit in the lease cannot be readily determined and the current incremental borrowing rate is {ibr_now}. Determine the remeasured lease liability and the adjustment to the right-of-use asset (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"A significant event within the lessee's control leads to reassessing the extension option (IFRS 16, para. 20); the lease term changes, so the liability is remeasured on the revised payments using a revised rate, here the incremental borrowing rate at the reassessment date (IFRS 16, para. 40 and 41). Revised payments: 3 + 2 = 5 payments of 24,000 at year end. Annuity factor at 7% over 5 years: 4.100197; 24,000 × 4.100197 = 98,405 (rounded). Adjustment: 98,405 − 66,602 = 31,803, added to the right-of-use asset (IFRS 16, para. 39).","es":""},"common_error":{"fr":"","en":"Discounting at the initial rate of 4%, which overstates the liability (106,844).","es":""},"format":"CALCULATION","placeholders":[{"id":"liability_before","value":"66602","unit":"EUR"},{"id":"yearly_rent","value":"24000","unit":"EUR"},{"id":"payments_left","value":"3","unit":"YEARS"},{"id":"option_years","value":"2","unit":"YEARS"},{"id":"ibr_now","value":"7","unit":"PERCENT"},{"id":"initial_rate","value":"4","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Lease liability before remeasurement","es":""},"value":"66602","unit":"EUR"},{"label":{"fr":"","en":"Annual payment made at year end","es":""},"value":"24000","unit":"EUR"},{"label":{"fr":"","en":"Non-cancellable payments remaining","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Years covered by the extension option","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Incremental borrowing rate at the reassessment date","es":""},"value":"7","unit":"PERCENT"},{"label":{"fr":"","en":"Initial discount rate","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"REVISED_LIABILITY","label":{"fr":"","en":"Remeasured lease liability","es":""},"answer":98405,"tolerance":0,"unit":"EUR"},{"id":"ROU_ADJUSTMENT","label":{"fr":"","en":"Increase in the right-of-use asset","es":""},"answer":31803,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_ADJUSTMENT","meaning":{"fr":"","en":"Increase in the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured lease liability","es":""},"value":98405,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before remeasurement","es":""},"value":66602,"unit":"EUR"}],"result":31803,"unit":"EUR"}],"references":["REF.IFRS16.39","REF.IFRS16.40","REF.IFRS16.41","REF.IFRS16.20"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000185","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000502","tested_point":"VG.IFRS16.000502","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"remeasurement-rule"},"references":["IFRS 16 §39","IFRS 16 §42","IFRS 16 §43"],"exercise":{"prompt":{"fr":"","en":"The retailer Ambrelis leases a shop; the payment, made at year end, is indexed to a price index. At 1 January 20X3, the effective date of the review, the annual payment rises from {old_payment} to {new_payment} for the {payments_remaining} remaining payments. The lease liability amounts to {carrying_liability} before the review, computed at a rate of {lease_rate}; Ambrelis's incremental borrowing rate at that date is {current_ibr}. Compute the remeasured lease liability and the adjustment to the right-of-use asset (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"The increase results from an index and takes effect on 1 January 20X3: the liability is remeasured at that date on the revised contractual payments (IFRS 16, para. 42), using the unchanged rate of 6% since the change does not arise from a floating interest rate (IFRS 16, para. 43); the 8% rate is irrelevant. Annuity factor at 6% over 3 years: 2.673012; 104,000 × 2.673012 = 277,993 (rounded). Adjustment: 277,993 − 267,301 = 10,692, added to the right-of-use asset (IFRS 16, para. 39).","es":""},"common_error":{"fr":"","en":"Discounting at the current incremental borrowing rate of 8%.","es":""},"format":"CALCULATION","placeholders":[{"id":"old_payment","value":"100000","unit":"EUR"},{"id":"new_payment","value":"104000","unit":"EUR"},{"id":"payments_remaining","value":"3","unit":"YEARS"},{"id":"lease_rate","value":"6","unit":"PERCENT"},{"id":"current_ibr","value":"8","unit":"PERCENT"},{"id":"carrying_liability","value":"267301","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual payment before indexation","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Annual payment after indexation","es":""},"value":"104000","unit":"EUR"},{"label":{"fr":"","en":"Remaining payments (year end)","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate used so far","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Incremental borrowing rate at the review date","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Lease liability before the review","es":""},"value":"267301","unit":"EUR"}],"steps":[{"id":"REVISED_LIABILITY","label":{"fr":"","en":"Remeasured lease liability","es":""},"answer":277993,"tolerance":0,"unit":"EUR"},{"id":"ROU_ADJUSTMENT","label":{"fr":"","en":"Increase in the right-of-use asset","es":""},"answer":10692,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_ADJUSTMENT","meaning":{"fr":"","en":"Increase in the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured lease liability","es":""},"value":277993,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before the review","es":""},"value":267301,"unit":"EUR"}],"result":10692,"unit":"EUR"}],"rationale":{"fr":"","en":"The increase results from an index and takes effect on 1 January 20X3: the liability is remeasured at that date on the revised contractual payments (IFRS 16, para. 42), using the unchanged rate of 6% since the change does not arise from a floating interest rate (IFRS 16, para. 43)","es":""},"references":["REF.IFRS16.39","REF.IFRS16.42","REF.IFRS16.43"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000186","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000502","tested_point":"VG.IFRS16.000502","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"remeasurement-rule"},"references":["IFRS 16 §39","IFRS 16 §42","IFRS 16 §43"],"exercise":{"prompt":{"fr":"","en":"The Solaris clinic leases a scanner; the payment, made at year end, follows a healthcare cost index. The management controller proposes remeasuring the lease liability at the current market rate of {market_rate}, which he considers more representative. At 1 January 20X4, when the review takes effect, the annual payment rises from {base_rent} to {indexed_rent} for the last {rents_due} payments. The lease liability is {liability_before} (original rate {original_rate}). Compute the remeasured lease liability and the increase in the right-of-use asset (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"The controller's proposal cannot be accepted: a change in payments resulting from an index is remeasured using an unchanged discount rate (IFRS 16, para. 43), when the adjustment takes effect and on the revised contractual payments (IFRS 16, para. 42). Annuity factor at 4% over 2 years: 1.886095; 61,800 × 1.886095 = 116,561 (rounded). Adjustment: 116,561 − 113,166 = 3,395, added to the right-of-use asset (IFRS 16, para. 39).","es":""},"common_error":{"fr":"","en":"Using the proposed 7% rate, which gives a liability of 111,736.","es":""},"format":"CALCULATION","placeholders":[{"id":"base_rent","value":"60000","unit":"EUR"},{"id":"indexed_rent","value":"61800","unit":"EUR"},{"id":"rents_due","value":"2","unit":"YEARS"},{"id":"original_rate","value":"4","unit":"PERCENT"},{"id":"market_rate","value":"7","unit":"PERCENT"},{"id":"liability_before","value":"113166","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual payment before the review","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Annual payment revised under the index","es":""},"value":"61800","unit":"EUR"},{"label":{"fr":"","en":"Remaining payments (year end)","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Original discount rate","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Market rate proposed by the controller","es":""},"value":"7","unit":"PERCENT"},{"label":{"fr":"","en":"Lease liability before the review","es":""},"value":"113166","unit":"EUR"}],"steps":[{"id":"REMEASURED_LIABILITY","label":{"fr":"","en":"Remeasured lease liability","es":""},"answer":116561,"tolerance":0,"unit":"EUR"},{"id":"RIGHT_OF_USE_INCREASE","label":{"fr":"","en":"Increase in the right-of-use asset","es":""},"answer":3395,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"RIGHT_OF_USE_INCREASE","meaning":{"fr":"","en":"Increase in the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured lease liability","es":""},"value":116561,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before the review","es":""},"value":113166,"unit":"EUR"}],"result":3395,"unit":"EUR"}],"rationale":{"fr":"","en":"The controller's proposal cannot be accepted: a change in payments resulting from an index is remeasured using an unchanged discount rate (IFRS 16, para. 43), when the adjustment takes effect and on the revised contractual payments (IFRS 16, para. 42).","es":""},"references":["REF.IFRS16.39","REF.IFRS16.42","REF.IFRS16.43"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000190","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.REASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000190","tested_point":"QST.IFRS16.000190","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000010","section_id":"remeasurement-rule"},"references":["IFRS 16 §39","IFRS 16 §40","IFRS 16 §41"],"exercise":{"prompt":{"fr":"","en":"The Kestrel laboratory leases a research building with a purchase option that it had not considered reasonably certain to exercise. After installing very costly clean rooms, Kestrel concludes that it will exercise the option. The lessor does not provide the data needed to compute the interest rate implicit in the lease for the remaining term. The CFO hesitates between several treatments. Which one complies with IFRS 16?","es":""},"explanation":{"fr":"","en":"A change in the assessment of a purchase option, assessed in the light of the events and circumstances referred to in the standard, requires the liability to be remeasured on revised lease payments reflecting the exercise price (IFRS 16, para. 40). As the implicit rate cannot be readily determined, the revised rate is the incremental borrowing rate at the reassessment date (IFRS 16, para. 41). The difference adjusts the right-of-use asset (IFRS 16, para. 39).","es":""},"common_error":{"fr":"","en":"Keeping the original rate for the sake of consistency of methods.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Remeasure the liability by adding the exercise price, discounted at the original rate of the lease, to ensure consistency of methods.","es":""},"correct":false,"feedback":{"fr":"","en":"Consistency of methods does not justify the original rate: a change in the assessment of the purchase option requires a revised rate.","es":""}},{"id":"B","text":{"fr":"","en":"Remeasure the liability at the current incremental borrowing rate, including the exercise price, and recognise the difference as a finance cost of the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is right, but the remeasurement difference adjusts the right-of-use asset; it is not recognised in profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"Include the exercise price in the revised lease payments, discount at the incremental borrowing rate at the reassessment date and adjust the right-of-use asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Change nothing until the option is legally exercised, since the contractual payments are unchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"The remeasurement follows the change in the assessment of the option; it does not wait for its legal exercise.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000191","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000191","tested_point":"QST.IFRS16.000191","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"separate-lease"},"references":["IFRS 16 §44"],"exercise":{"prompt":{"fr":"","en":"Pélican leases two floors of a building. It obtains from the lessor the lease of a third floor for the remaining term, for an additional payment equal to the rental price of a comparable floor, less the marketing costs the lessor will not incur. How does Pélican account for this modification?","es":""},"explanation":{"fr":"","en":"A modification is accounted for as a separate lease when two conditions are met: it adds the right to use one or more underlying assets, and the consideration increases by an amount commensurate with the stand-alone price of that increase in scope, adjusted to reflect the circumstances of the contract (IFRS 16, para. 44). The marketing costs saved are such an adjustment; both conditions are met.","es":""},"common_error":{"fr":"","en":"Requiring a payment strictly equal to the market price, ignoring adjustments specific to the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a separate lease of the third floor, the original lease being unchanged.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"By remeasuring the liability of the original lease at a revised rate and adjusting the existing right-of-use asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This treatment applies to a modification that is not a separate lease; here, both conditions for a separate lease are met.","es":""}},{"id":"C","text":{"fr":"","en":"As a separate lease only if the additional payment is strictly equal to the market price, without any adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"The stand-alone price may be adjusted to reflect the circumstances of the contract, such as the marketing costs saved.","es":""}},{"id":"D","text":{"fr":"","en":"By remeasuring the liability at the original rate, since the added floor is in the same building.","es":""},"correct":false,"feedback":{"fr":"","en":"Being in the same building is irrelevant, and a modification that is not separate would be remeasured using a revised rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000192","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000192","tested_point":"QST.IFRS16.000192","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"separate-lease"},"references":["IFRS 16 §44","IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"The Ardelle firm leases an office floor. Halfway through, it leases an additional floor in the same building for the remaining term, with an additional payment 30% below the price charged for comparable space; no circumstance specific to the contract justifies this discount, granted to retain a major tenant. What is the appropriate treatment at the effective date of the modification?","es":""},"explanation":{"fr":"","en":"The added floor is indeed an additional asset, but the rent increase is not commensurate with the adjusted stand-alone price: it is not a separate lease (IFRS 16, para. 44). At the effective date, Ardelle allocates the consideration of the modified lease, determines its term and remeasures the liability at a revised rate (IFRS 16, para. 45). As the modification increases the scope, the difference adjusts the right-of-use asset (IFRS 16, para. 46).","es":""},"common_error":{"fr":"","en":"Treating as a separate lease an increase in space obtained at a price below the stand-alone price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a separate lease for the added floor, since a new underlying asset is leased.","es":""},"correct":false,"feedback":{"fr":"","en":"An increase in consideration commensurate with the adjusted stand-alone price is also needed; an unjustified 30% discount rules it out.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise nothing before the reporting date, since the modification only affects future payments.","es":""},"correct":false,"feedback":{"fr":"","en":"The remeasurement takes place at the effective date of the modification, not at the reporting date.","es":""}},{"id":"C","text":{"fr":"","en":"Remeasure the lease liability using a revised rate and recognise the difference in profit or loss for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Except for a decrease in scope, the remeasurement difference adjusts the right-of-use asset and is not recognised in profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"Remeasure the liability on the consideration of the modified lease at a revised rate and adjust the right-of-use asset by the same amount.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000193","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000504","tested_point":"VG.IFRS16.000504","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"separate-lease"},"references":["IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"Ostral leases a hangar; {rents_remaining} annual payments of {rent} remain, paid at year end, and the lease liability amounts to {liability_before} (original rate {original_rate}). The lease contains no extension option. On 1 January 20X5, Ostral and the lessor sign an amendment adding {added_years} years at the same rent; it does not cover any additional asset. The interest rate implicit in the lease cannot be readily determined; Ostral's incremental borrowing rate at the effective date is {ibr_effective_date}. Compute the modified lease liability and the adjustment to the right-of-use asset (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"The amendment adds no underlying asset: it is not a separate lease. At the effective date, Ostral determines the modified lease term (4 years remaining) and remeasures the liability by discounting the revised payments using a revised rate, here the incremental borrowing rate of 7% (IFRS 16, para. 45). Annuity factor at 7% over 4 years: 3.387211; 40,000 × 3.387211 = 135,488 (rounded). Difference: 135,488 − 74,376 = 61,112, which adjusts the right-of-use asset (IFRS 16, para. 46).","es":""},"common_error":{"fr":"","en":"Discounting the 4 payments at the original rate of 5%, giving 141,838.","es":""},"format":"CALCULATION","placeholders":[{"id":"rent","value":"40000","unit":"EUR"},{"id":"rents_remaining","value":"2","unit":"YEARS"},{"id":"added_years","value":"2","unit":"YEARS"},{"id":"liability_before","value":"74376","unit":"EUR"},{"id":"original_rate","value":"5","unit":"PERCENT"},{"id":"ibr_effective_date","value":"7","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual payment made at year end","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Payments remaining before the amendment","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Years added by the amendment","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Lease liability before the modification","es":""},"value":"74376","unit":"EUR"},{"label":{"fr":"","en":"Original discount rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Incremental borrowing rate at the effective date","es":""},"value":"7","unit":"PERCENT"}],"steps":[{"id":"MODIFIED_LIABILITY","label":{"fr":"","en":"Modified lease liability","es":""},"answer":135488,"tolerance":0,"unit":"EUR"},{"id":"ROU_ADJUSTMENT","label":{"fr":"","en":"Increase in the right-of-use asset","es":""},"answer":61112,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_ADJUSTMENT","meaning":{"fr":"","en":"Increase in the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Modified lease liability","es":""},"value":135488,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before the modification","es":""},"value":74376,"unit":"EUR"}],"result":61112,"unit":"EUR"}],"rationale":{"fr":"","en":"At the effective date, Ostral determines the modified lease term (4 years remaining) and remeasures the liability by discounting the revised payments using a revised rate, here the incremental borrowing rate of 7% (IFRS 16, para. 45).","es":""},"references":["REF.IFRS16.45","REF.IFRS16.46"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000194","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000504","tested_point":"VG.IFRS16.000504","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"separate-lease"},"references":["IFRS 16 §44","IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"The logistics provider Verlaine leases a fleet of forklift trucks. To secure its equipment during a multi-year customer contract, it negotiates with the lessor an extension of the lease by {extension} years, at the same annual payment of {annual_payment} made at year end, with no additional truck. Before the amendment, {payments_due} payments remained and the lease liability was {carrying_liability} (initial rate {initial_rate}). The incremental borrowing rate at the effective date is {revised_rate}, the implicit rate not being determinable. Determine the modified lease liability and the adjustment to the right-of-use asset (rounded to the nearest euro).","es":""},"explanation":{"fr":"","en":"No underlying asset is added: the modification is not a separate lease (IFRS 16, para. 44). The liability is remeasured at the effective date on the payments of the modified lease term (3 + 2 = 5 payments) at the revised rate of 6% (IFRS 16, para. 45). Annuity factor at 6% over 5 years: 4.212364; 36,000 × 4.212364 = 151,645 (rounded). The difference of 151,645 − 99,903 = 51,742 adjusts the right-of-use asset (IFRS 16, para. 46).","es":""},"common_error":{"fr":"","en":"Treating the extension as a separate lease.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"36000","unit":"EUR"},{"id":"payments_due","value":"3","unit":"YEARS"},{"id":"extension","value":"2","unit":"YEARS"},{"id":"carrying_liability","value":"99903","unit":"EUR"},{"id":"initial_rate","value":"4","unit":"PERCENT"},{"id":"revised_rate","value":"6","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual payment made at year end","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Payments remaining before the amendment","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Negotiated extension (years)","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Lease liability before the modification","es":""},"value":"99903","unit":"EUR"},{"label":{"fr":"","en":"Initial discount rate","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Incremental borrowing rate at the effective date","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"MODIFIED_LIABILITY","label":{"fr":"","en":"Modified lease liability","es":""},"answer":151645,"tolerance":0,"unit":"EUR"},{"id":"ROU_ADJUSTMENT","label":{"fr":"","en":"Increase in the right-of-use asset","es":""},"answer":51742,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_ADJUSTMENT","meaning":{"fr":"","en":"Increase in the right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Modified lease liability","es":""},"value":151645,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before the modification","es":""},"value":99903,"unit":"EUR"}],"result":51742,"unit":"EUR"}],"rationale":{"fr":"","en":"No underlying asset is added: the modification is not a separate lease (IFRS 16, para. 44).","es":""},"references":["REF.IFRS16.44","REF.IFRS16.45","REF.IFRS16.46"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000195","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000505","tested_point":"VG.IFRS16.000505","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"separate-lease"},"references":["IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"Mirabel leases {total_area} m² of offices. On 1 July 20X4, an amendment allows it to return {area_returned} m² for the remaining term; the remaining payments are reduced in the same proportion. At that date, the right-of-use asset has a carrying amount of {rou_carrying} and the lease liability of {liability_carrying}. Case data: the interest rate implicit in the lease cannot be readily determined and Mirabel's incremental borrowing rate at the effective date happens to equal the original rate; Mirabel measures the partial termination in proportion to the area returned (method chosen for the case). Compute the decrease in the right-of-use asset, the modified lease liability and the gain or loss.","es":""},"explanation":{"fr":"","en":"The modification decreases the scope of the lease: it is not a separate lease. The liability is remeasured at a revised rate at the effective date (IFRS 16, para. 45); the revised payments are 60% of the previous ones and the revised rate equals the original rate, so the modified liability is 60% × 350,000 = 210,000, a decrease of 140,000. The right-of-use asset is reduced to reflect the partial termination (IFRS 16, para. 46), here proportionately: 300,000 × 800 / 2,000 = 120,000. The gain in profit or loss is 140,000 − 120,000 = 20,000.","es":""},"common_error":{"fr":"","en":"Applying the whole 140,000 decrease to the right-of-use asset without recognising any gain.","es":""},"format":"CALCULATION","placeholders":[{"id":"rou_carrying","value":"300000","unit":"EUR"},{"id":"liability_carrying","value":"350000","unit":"EUR"},{"id":"total_area","value":"2000","unit":"UNITS"},{"id":"area_returned","value":"800","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Carrying amount of the right-of-use asset","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Lease liability before the modification","es":""},"value":"350000","unit":"EUR"},{"label":{"fr":"","en":"Area originally leased (m²)","es":""},"value":"2000","unit":"UNITS"},{"label":{"fr":"","en":"Area returned (m²)","es":""},"value":"800","unit":"UNITS"}],"steps":[{"id":"ROU_DECREASE","label":{"fr":"","en":"Decrease in the right-of-use asset","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"MODIFIED_LIABILITY","label":{"fr":"","en":"Modified lease liability","es":""},"answer":210000,"tolerance":0,"unit":"EUR"},{"id":"MODIFICATION_GAIN","label":{"fr":"","en":"Gain recognised in profit or loss","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_DECREASE","meaning":{"fr":"","en":"Decrease in the right-of-use asset","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the right-of-use asset","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Area returned (m²)","es":""},"value":800,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Area originally leased (m²)","es":""},"value":2000,"unit":"UNITS"}],"result":120000,"unit":"EUR","rationale":{"fr":"","en":"The right-of-use asset is reduced to reflect the partial termination (IFRS 16, para. 46), here proportionately: 300,000 × 800 / 2,000 = 120,000.","es":""}}],"references":["REF.IFRS16.45","REF.IFRS16.46"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000196","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.MODIFICATIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000505","tested_point":"VG.IFRS16.000505","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"separate-lease"},"references":["IFRS 16 §45","IFRS 16 §46"],"exercise":{"prompt":{"fr":"","en":"The Coralis printing company leases {machines_leased} identical rotary presses under a single lease. At the end of 20X3, an amendment terminates the lease of {machines_returned} press for the remaining term and reduces the remaining payments proportionately. Just before the amendment, the right-of-use asset is {rou_value} and the lease liability {liability_value}. Case data: the implicit rate cannot be determined; Coralis's incremental borrowing rate at the effective date, used as the revised rate, equals the original rate; the partial termination is measured in proportion to the number of presses (method chosen). Compute the decrease in the right-of-use asset and the gain or loss on the modification.","es":""},"explanation":{"fr":"","en":"Decrease in scope: the liability is remeasured at the revised rate (IFRS 16, para. 45), here equal to the original rate, on payments reduced by a quarter: it decreases by 190,000 / 4 = 47,500. The right-of-use asset is reduced to reflect the partial termination, here proportionately: 210,000 / 4 = 52,500 (IFRS 16, para. 46). The decrease in the asset exceeds that of the liability: a loss of 52,500 − 47,500 = 5,000 in profit or loss.","es":""},"common_error":{"fr":"","en":"Assuming that a decrease in scope always produces a gain.","es":""},"format":"CALCULATION","placeholders":[{"id":"machines_leased","value":"4","unit":"UNITS"},{"id":"machines_returned","value":"1","unit":"UNITS"},{"id":"rou_value","value":"210000","unit":"EUR"},{"id":"liability_value","value":"190000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Presses leased","es":""},"value":"4","unit":"UNITS"},{"label":{"fr":"","en":"Presses returned","es":""},"value":"1","unit":"UNITS"},{"label":{"fr":"","en":"Carrying amount of the right-of-use asset","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Lease liability before the amendment","es":""},"value":"190000","unit":"EUR"}],"steps":[{"id":"ROU_DECREASE","label":{"fr":"","en":"Decrease in the right-of-use asset","es":""},"answer":52500,"tolerance":0,"unit":"EUR"},{"id":"MODIFICATION_LOSS","label":{"fr":"","en":"Loss recognised in profit or loss","es":""},"answer":5000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ROU_DECREASE","meaning":{"fr":"","en":"Decrease in the right-of-use asset","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the right-of-use asset","es":""},"value":210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Presses leased","es":""},"value":4,"unit":"UNITS"}],"result":52500,"unit":"EUR","rationale":{"fr":"","en":"The right-of-use asset is reduced to reflect the partial termination, here proportionately: 210,000 / 4 = 52,500 (IFRS 16, para. 46).","es":""}},{"step":"MODIFICATION_LOSS","meaning":{"fr":"","en":"Loss recognised in profit or loss","es":""},"expression":"a - (b / c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Decrease in the right-of-use asset","es":""},"value":52500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease liability before the amendment","es":""},"value":190000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Presses leased","es":""},"value":4,"unit":"UNITS"}],"result":5000,"unit":"EUR"}],"references":["REF.IFRS16.45","REF.IFRS16.46"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000200","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RENT_CONCESSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000200","tested_point":"QST.IFRS16.000200","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"covid-concessions"},"references":["IFRS 16 §46A","IFRS 16 §46B"],"exercise":{"prompt":{"fr":"","en":"In 2023, Novalis obtains from its lessor a reduction of the payments due from July to December 2023, presented as a lasting consequence of the Covid-19 pandemic. Novalis may apply the practical expedient for Covid-19-related rent concessions and dispense with assessing whether this concession is a lease modification.","es":""},"explanation":{"fr":"","en":"False. The practical expedient is historical: it covers only concessions arising as a direct consequence of the pandemic whose reductions affect only payments originally due on or before 30 June 2022 (IFRS 16, para. 46B). Payments due in 2023 are outside its scope; the expedient that removes the need to assess whether there is a modification (IFRS 16, para. 46A) is not available and Novalis applies the general requirements of the standard.","es":""},"common_error":{"fr":"","en":"Applying the practical expedient to any concession presented as pandemic-related, whatever the period.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000201","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RENT_CONCESSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000201","tested_point":"QST.IFRS16.000201","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"covid-concessions"},"references":["IFRS 16 §46B"],"exercise":{"prompt":{"fr":"","en":"Historical reminder. In 2021, four lessees of the Brisane group obtained the following rent concessions from their lessors as a direct consequence of the Covid-19 pandemic. Which one met all the conditions of the practical expedient then applicable?","es":""},"explanation":{"fr":"","en":"The expedient covered only concessions arising as a direct consequence of the pandemic that met three conditions: revised consideration substantially the same as, or less than, the original; reductions affecting only payments originally due on or before 30 June 2022; and no substantive change to other terms and conditions (IFRS 16, para. 46B). Only the deferral of the April to June 2021 payments meets them all.","es":""},"common_error":{"fr":"","en":"Forgetting the 30 June 2022 limit for the payments concerned.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A discount on the 2021 payments, granted in exchange for a five-year extension of the lease on new terms.","es":""},"correct":false,"feedback":{"fr":"","en":"A five-year extension on new terms is a substantive change to the other terms of the lease.","es":""}},{"id":"B","text":{"fr":"","en":"A deferral of the April to June 2021 payments to 2022, the total consideration remaining almost the same and no other clause changing.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A discount on the 2021 payments offset by higher future payments bringing the total consideration well above the original one.","es":""},"correct":false,"feedback":{"fr":"","en":"The revised consideration must be substantially the same as, or less than, the original consideration.","es":""}},{"id":"D","text":{"fr":"","en":"A reduction of the payments for the second half of 2022, with no other change to the lease.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments for the second half of 2022 were due after 30 June 2022: the reduction was outside the scope of the expedient.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000202","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_SUBSEQUENT.RENT_CONCESSIONS","IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000202","tested_point":"QST.IFRS16.000202","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"covid-concessions"},"references":["IFRS 16 §46A","IFRS 16 §60A"],"exercise":{"prompt":{"fr":"","en":"Historical reminder. In 2020, the lessee Tamaris obtained a rent concession that met all the conditions of the practical expedient for Covid-19-related rent concessions, and it elected to apply it. Which description of this expedient is accurate?","es":""},"explanation":{"fr":"","en":"The expedient allowed the lessee not to assess whether a qualifying concession was a lease modification; the lessee then accounted for the change in payments as it would under IFRS 16 if the change were not a modification (IFRS 16, para. 46A). The lessee disclosed whether it had applied it to all qualifying concessions or the nature of the contracts concerned, and the amount recognised in profit or loss (IFRS 16, para. 60A). In its 2020 version, the expedient covered payments originally due on or before 30 June 2021; the 2021 amendment extended this date to 30 June 2022.","es":""},"common_error":{"fr":"","en":"Believing that the expedient also removed the disclosures.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tamaris had to treat the concession as a modification and remeasure the lease liability using a revised rate.","es":""},"correct":false,"feedback":{"fr":"","en":"This is precisely the modification analysis that the expedient made it possible to avoid.","es":""}},{"id":"B","text":{"fr":"","en":"The expedient applied in the same way to the lessor, which could also dispense with the analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"The expedient was available to the lessee; it did not concern the lessor.","es":""}},{"id":"C","text":{"fr":"","en":"Tamaris did not assess whether there was a modification and accounted for the change in payments as if it were not one.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The expedient exempted Tamaris from any note disclosure on concessions treated in this way.","es":""},"correct":false,"feedback":{"fr":"","en":"Using the expedient came with specific disclosures, including the amount recognised in profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000203","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000203","tested_point":"QST.IFRS16.000203","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §47"],"exercise":{"prompt":{"fr":"","en":"Quintal wonders how to present its lease liabilities. Which statement is accurate?","es":""},"explanation":{"fr":"","en":"The lessee presents its lease liabilities separately from other liabilities, either in the statement of financial position or in the notes; if they are not presented on a separate line, the lessee discloses which line items include them (IFRS 16, para. 47).","es":""},"common_error":{"fr":"","en":"Thinking that a separate line in the statement of financial position is compulsory.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They must be shown on a separate line in the statement of financial position; disclosure in the notes can never replace this presentation.","es":""},"correct":false,"feedback":{"fr":"","en":"A separate line is not the only possibility: the information may be given in the notes.","es":""}},{"id":"B","text":{"fr":"","en":"They may be grouped with trade payables, without any further information.","es":""},"correct":false,"feedback":{"fr":"","en":"Without a separate line, the lessee must disclose which line items include the lease liabilities.","es":""}},{"id":"C","text":{"fr":"","en":"They appear only in the notes, the statement of financial position showing only right-of-use assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Lease liabilities are recognised in the statement of financial position; only their separate presentation may be given in the notes.","es":""}},{"id":"D","text":{"fr":"","en":"They are presented separately in the statement of financial position or, failing that, in the notes stating which line items include them.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000204","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000204","tested_point":"QST.IFRS16.000204","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §47"],"exercise":{"prompt":{"fr":"","en":"The carrier Dunelle does not present its right-of-use assets on a separate line in the statement of financial position. These rights relate to trucks it leases. Where must it include them?","es":""},"explanation":{"fr":"","en":"A lessee that does not present right-of-use assets separately includes them within the same line item as that within which the corresponding underlying assets would be presented if they were owned, and discloses which line items include them (IFRS 16, para. 47).","es":""},"common_error":{"fr":"","en":"Classifying right-of-use assets within intangible assets by default.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Within intangible assets, since they are a contractual right and not a physical item held.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard refers to the line of the underlying asset if owned, here property, plant and equipment, not intangible assets.","es":""}},{"id":"B","text":{"fr":"","en":"Within the line item in which the trucks would be presented if Dunelle owned them, disclosing that line in the notes.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Within inventories, since the trucks will be returned to the lessor.","es":""},"correct":false,"feedback":{"fr":"","en":"The trucks are not held for sale; right-of-use assets are not inventories.","es":""}},{"id":"D","text":{"fr":"","en":"As a deduction from lease liabilities, to present a net amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Right-of-use assets and lease liabilities are presented separately; they are not offset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000205","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000205","tested_point":"QST.IFRS16.000205","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §48"],"exercise":{"prompt":{"fr":"","en":"The property company Ombrelle leases an office building that it fully subleases to third parties; according to the analysis provided, the corresponding right-of-use asset meets the definition of investment property. How is this right-of-use asset presented in the statement of financial position?","es":""},"explanation":{"fr":"","en":"The requirement to present right-of-use assets separately does not apply to those that meet the definition of investment property: they are presented in the statement of financial position as investment property (IFRS 16, para. 48). The investment property classification is a datum of the case.","es":""},"common_error":{"fr":"","en":"Mechanically applying the right-of-use asset line to an investment property.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the separate right-of-use asset line, like all other right-of-use assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Separate presentation does not apply to right-of-use assets that are investment property.","es":""}},{"id":"B","text":{"fr":"","en":"Within property, plant and equipment, the line where a building owned and occupied by the entity for its business would appear.","es":""},"correct":false,"feedback":{"fr":"","en":"The building is not occupied by Ombrelle: the right-of-use asset is presented within investment property.","es":""}},{"id":"C","text":{"fr":"","en":"Within investment property, the separate presentation of right-of-use assets not applying.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As a deduction from the lease liability relating to this building.","es":""},"correct":false,"feedback":{"fr":"","en":"Lease assets and liabilities are not offset in the statement of financial position.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000206","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000206","tested_point":"QST.IFRS16.000206","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §49"],"exercise":{"prompt":{"fr":"","en":"Pervenche is preparing its statement of profit or loss and other comprehensive income. Which statements on the presentation of expenses relating to its leases recognised in the statement of financial position are accurate? (several answers)","es":""},"explanation":{"fr":"","en":"The lessee presents interest expense on the lease liability separately from the depreciation charge for the right-of-use asset (IFRS 16, para. 49). A single rent line, adding interest to the right-of-use asset or presenting only the payments made would breach this separation.","es":""},"common_error":{"fr":"","en":"Presenting a single rent expense, as for an operating lease at a lessor.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A single lease expense line may combine the interest expense and the depreciation charge for the right-of-use asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Combining interest and depreciation on the same line is contrary to the separate presentation requirement.","es":""}},{"id":"B","text":{"fr":"","en":"Interest expense on the lease liability is presented separately from the depreciation charge for the right-of-use asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Interest expense on the lease liability is added to the right-of-use asset and then depreciated with it.","es":""},"correct":false,"feedback":{"fr":"","en":"Interest on the lease liability is an expense of the period, presented separately from depreciation.","es":""}},{"id":"D","text":{"fr":"","en":"The depreciation charge for the right-of-use asset cannot include the interest expense on the lease liability.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Only the amount of lease payments made during the year is presented as an expense.","es":""},"correct":false,"feedback":{"fr":"","en":"For a lease recognised in the statement of financial position, the expenses are depreciation and interest, not the payments made.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000207","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000207","tested_point":"QST.IFRS16.000207","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §50"],"exercise":{"prompt":{"fr":"","en":"Galion pays each year the rent for a warehouse recognised in the statement of financial position. In its statement of cash flows, how does it classify the part of the payment that repays the principal portion of the lease liability?","es":""},"explanation":{"fr":"","en":"Payments for the principal portion of the lease liability are classified within financing activities; the interest portion follows the requirements of IAS 7 for interest paid (IFRS 16, para. 50).","es":""},"common_error":{"fr":"","en":"Classifying the repayment of the principal of the lease liability as an operating cash flow.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Within operating activities, since the warehouse is used in operations.","es":""},"correct":false,"feedback":{"fr":"","en":"Using the warehouse in operations does not change the nature of the repayment: it is a financing cash flow.","es":""}},{"id":"B","text":{"fr":"","en":"Within financing activities.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Within investing activities, since the right-of-use asset is a non-current asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Repaying a lease liability is not an investment: it is financing.","es":""}},{"id":"D","text":{"fr":"","en":"It does not appear in the statement, since the right-of-use asset was not acquired for cash.","es":""},"correct":false,"feedback":{"fr":"","en":"The payment is an actual cash outflow; its principal portion is classified within financing.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000208","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000208","tested_point":"QST.IFRS16.000208","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §50"],"exercise":{"prompt":{"fr":"","en":"The Hespéride group analyses its lease-related cash outflows for the year. Which payments does it classify within operating activities in its statement of cash flows? (several answers)","es":""},"explanation":{"fr":"","en":"Payments for short-term leases, for leases of low-value assets and variable lease payments not included in the lease liability are classified within operating activities. Repayments of the principal of the lease liability, including early repayments, are financing activities (IFRS 16, para. 50).","es":""},"common_error":{"fr":"","en":"Classifying payments for exempt leases within financing activities.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The portion of the payments under a 9-year office lease that repays the principal of the lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The principal portion of a lease recognised in the statement of financial position is a financing cash flow.","es":""}},{"id":"B","text":{"fr":"","en":"The payments for a short-term lease of aerial work platforms accounted for under the exemption.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The payments for low-value tablets accounted for under the exemption.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The early repayment of part of the lease liability for a warehouse.","es":""},"correct":false,"feedback":{"fr":"","en":"A repayment of principal, even early, remains a financing cash flow.","es":""}},{"id":"E","text":{"fr":"","en":"Variable payments linked to a shop's sales, not included in the lease liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000209","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000209","tested_point":"QST.IFRS16.000209","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §50"],"exercise":{"prompt":{"fr":"","en":"In 20X3, Lunaire paid 120,000 under its leases recognised in the statement of financial position, of which 18,000 relates to interest on the lease liabilities. It also paid 9,000 for exempt short-term leases and 4,000 of variable payments not included in the lease liability. What amount does it present within financing activities for the repayment of the principal of lease liabilities?","es":""},"explanation":{"fr":"","en":"Repayment of the principal of the lease liability is classified within financing: 120,000 − 18,000 = 102,000. Interest follows the requirements of IAS 7 for interest paid; exempt short-term lease payments (9,000) and variable payments not included in the liability (4,000) are operating cash flows (IFRS 16, para. 50).","es":""},"common_error":{"fr":"","en":"Classifying all lease-related cash outflows within financing activities.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"133,000","es":""},"correct":false,"feedback":{"fr":"","en":"This total adds the exempt leases and the variable payments, which are operating cash flows.","es":""}},{"id":"B","text":{"fr":"","en":"120,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount includes the 18,000 of interest, which follows the requirements of IAS 7 and is not principal.","es":""}},{"id":"C","text":{"fr":"","en":"102,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"89,000","es":""},"correct":false,"feedback":{"fr":"","en":"Operating payments are not deducted from the principal: they are simply classified elsewhere.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000210","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000210","tested_point":"QST.IFRS16.000210","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §49"],"exercise":{"prompt":{"fr":"","en":"In Saphir's draft statement of profit or loss, a Lease expenses line of 260,000 combines 205,000 of depreciation of right-of-use assets and 55,000 of interest on lease liabilities. The CFO argues that this presentation is clearer. What correction does the auditor request?","es":""},"explanation":{"fr":"","en":"In the statement of profit or loss, the lessee presents interest expense on the lease liability separately from the depreciation charge for the right-of-use asset (IFRS 16, para. 49). A single line of 260,000 does not meet this requirement: Saphir must show 55,000 of interest and 205,000 of depreciation separately.","es":""},"common_error":{"fr":"","en":"Believing that a breakdown in the notes is enough instead of separate presentation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, provided the breakdown of the 260,000 is given in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"The requirement concerns presentation in the statement of profit or loss: a breakdown in the notes does not replace it.","es":""}},{"id":"B","text":{"fr":"","en":"Present separately the 55,000 of interest and the 205,000 of depreciation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Present the 260,000 as finance costs, since they arise from a lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation of the right-of-use asset is not interest expense; only the 55,000 is interest.","es":""}},{"id":"D","text":{"fr":"","en":"Replace the 260,000 with the amount of lease payments made during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments made are not the measure of the expenses of a lease recognised in the statement of financial position.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000211","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000211","tested_point":"QST.IFRS16.000211","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §47"],"exercise":{"prompt":{"fr":"","en":"Cordial includes its lease liabilities in the Borrowings line and its right-of-use assets in the Property, plant and equipment line, without presenting them on separate lines. What information is missing to comply with IFRS 16?","es":""},"explanation":{"fr":"","en":"If they are not presented separately in the statement of financial position, the lessee discloses in the notes its right-of-use assets separately from other assets and its lease liabilities separately from other liabilities, and states which line items include them (IFRS 16, para. 47).","es":""},"common_error":{"fr":"","en":"Believing that inclusion in existing lines is enough without further information.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: inclusion in existing lines removes any need for further information.","es":""},"correct":false,"feedback":{"fr":"","en":"Inclusion in existing lines is allowed, but the lines concerned must then be disclosed.","es":""}},{"id":"B","text":{"fr":"","en":"Only the total amount of lease payments made during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of payments made does not identify the right-of-use assets and lease liabilities included in the statement of financial position.","es":""}},{"id":"C","text":{"fr":"","en":"Disclosure, in the notes, of the amounts and of the line items that include those right-of-use assets and lease liabilities.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A note explaining why it does not offset right-of-use assets against lease liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"No justification for not offsetting is required; what is missing is the identification of the lines.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000212","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000212","tested_point":"QST.IFRS16.000212","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"balance-sheet"},"references":["IFRS 16 §47","IFRS 16 §48","IFRS 16 §49","IFRS 16 §50"],"exercise":{"prompt":{"fr":"","en":"Orphée's controller reviews a checklist on lessee presentation of leases. Which statements are accurate? (several answers)","es":""},"explanation":{"fr":"","en":"The lessee presents right-of-use assets separately from other assets, in the statement of financial position or in the notes (IFRS 16, para. 47), except those meeting the definition of investment property, presented within investment property (IFRS 16, para. 48). Interest is presented separately from depreciation (IFRS 16, para. 49). The principal repaid is a financing cash flow, and payments for exempt short-term leases are operating cash flows (IFRS 16, para. 50).","es":""},"common_error":{"fr":"","en":"Classifying the repayment of the principal of the lease liability as an operating cash flow.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Right-of-use assets are presented separately from other assets, in the statement of financial position or in the notes.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Repayment of the principal of the lease liability is an operating cash flow.","es":""},"correct":false,"feedback":{"fr":"","en":"Repayment of the principal is classified within financing activities.","es":""}},{"id":"C","text":{"fr":"","en":"Interest expense on the lease liability is presented separately from the depreciation of the right-of-use asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Payments for exempt short-term leases are classified within financing activities.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments for exempt short-term leases are operating cash flows.","es":""}},{"id":"E","text":{"fr":"","en":"A right-of-use asset meeting the definition of investment property is presented within investment property.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000213","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000213","tested_point":"QST.IFRS16.000213","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §53"],"exercise":{"prompt":{"fr":"","en":"Mélèze is preparing the note on its leases as a lessee. Which of the following amounts must it disclose for the period? (several answers)","es":""},"explanation":{"fr":"","en":"The lessee discloses, among other things, the depreciation of right-of-use assets by class of underlying asset, interest expense, the expense for short-term leases, the expense for low-value assets, the expense for variable payments not included in the lease liability, sublease income, the total cash outflow, additions to right-of-use assets, gains or losses on sale and leaseback transactions and the carrying amount of right-of-use assets by class (IFRS 16, para. 53). The fair value of right-of-use assets and data specific to lessors are not in this list.","es":""},"common_error":{"fr":"","en":"Omitting the expense for exempt short-term and low-value leases.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The depreciation charge for right-of-use assets, by class of underlying asset.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fair value of each right-of-use asset at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The list requires the carrying amount by class, not a fair value per right-of-use asset.","es":""}},{"id":"C","text":{"fr":"","en":"The expense relating to short-term leases.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The total cash outflow for leases.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The average remaining useful life of the assets held by its lessors.","es":""},"correct":false,"feedback":{"fr":"","en":"Data specific to the lessors' assets are not part of the lessee's disclosures.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000214","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000214","tested_point":"QST.IFRS16.000214","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §51","IFRS 16 §52"],"exercise":{"prompt":{"fr":"","en":"The Aubépine group is restructuring the notes to its financial statements. Which statements on the organisation and objective of lessee disclosures are accurate? (several answers)","es":""},"explanation":{"fr":"","en":"The objective is for the notes, together with the statement of financial position, the statement of profit or loss and the statement of cash flows, to provide a basis for assessing the effect of leases on the lessee's financial position, financial performance and cash flows (IFRS 16, para. 51). The information is grouped in a single note or a separate section, without repeating what is presented elsewhere provided a cross-reference incorporates it (IFRS 16, para. 52).","es":""},"common_error":{"fr":"","en":"Duplicating in the note information already given elsewhere instead of cross-referring to it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Any information already presented elsewhere must be reproduced in full in the lease note.","es":""},"correct":false,"feedback":{"fr":"","en":"Repetition is not required: a cross-reference is enough to incorporate information presented elsewhere.","es":""}},{"id":"B","text":{"fr":"","en":"Lease disclosures are grouped in a single note or a separate section.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Information already presented elsewhere may be incorporated into the lease note by cross-reference.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Lease disclosures are spread across the notes for each class of assets, without grouping.","es":""},"correct":false,"feedback":{"fr":"","en":"The information is grouped, not scattered across the notes by class of assets.","es":""}},{"id":"E","text":{"fr":"","en":"Together with the primary financial statements, the notes must provide a basis for assessing the effect of leases on financial position, performance and cash flows.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000215","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000215","tested_point":"QST.IFRS16.000215","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §54","IFRS 16 §53"],"exercise":{"prompt":{"fr":"","en":"The consolidation manager of the Tilleul group proposes presenting the quantitative amounts relating to leases (depreciation, interest, expenses for exempt leases, cash outflows…) as a long narrative paragraph. What does IFRS 16 say?","es":""},"explanation":{"fr":"","en":"The quantitative information listed for the lessee (IFRS 16, para. 53) is presented in a tabular format, unless another format is more appropriate; a narrative paragraph is therefore not the reference format (IFRS 16, para. 54).","es":""},"common_error":{"fr":"","en":"Thinking that the presentation of quantitative amounts is entirely free.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The format is entirely free; narrative text is as appropriate as a table.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard favours a table; another format is used only if it is more appropriate.","es":""}},{"id":"B","text":{"fr":"","en":"These amounts must be presented in the statement of profit or loss, not in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"These amounts are note disclosures, even if some also appear in the primary statements.","es":""}},{"id":"C","text":{"fr":"","en":"This information is provided in a tabular format, unless another format is more appropriate.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A table is required only for listed groups.","es":""},"correct":false,"feedback":{"fr":"","en":"The requirement does not distinguish listed entities from others.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000216","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000216","tested_point":"QST.IFRS16.000216","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §53","IFRS 16 §54"],"exercise":{"prompt":{"fr":"","en":"Fougère leases its production lines (a single class of underlying asset). In 20X4, depreciation of the related right-of-use assets amounts to 96,000: 84,000 is recognised as an expense and 12,000 has been included in the production cost of inventories still on hand at the reporting date. What depreciation amount does Fougère disclose for this class in the lease note?","es":""},"explanation":{"fr":"","en":"The lessee discloses the depreciation charge for right-of-use assets by class of underlying asset (IFRS 16, para. 53). The amounts disclosed include costs that the lessee has included in the carrying amount of another asset during the period (IFRS 16, para. 54): 84,000 + 12,000 = 96,000.","es":""},"common_error":{"fr":"","en":"Taking only the part of depreciation recognised as an expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"84,000","es":""},"correct":false,"feedback":{"fr":"","en":"This amount omits the 12,000 included in inventories, which must be included.","es":""}},{"id":"B","text":{"fr":"","en":"96,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"12,000","es":""},"correct":false,"feedback":{"fr":"","en":"This is only the part included in inventories.","es":""}},{"id":"D","text":{"fr":"","en":"72,000","es":""},"correct":false,"feedback":{"fr":"","en":"The 12,000 is not deducted: it is added to the expense recognised.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000217","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000217","tested_point":"QST.IFRS16.000217","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §53"],"exercise":{"prompt":{"fr":"","en":"The Romarin firm applies the exemptions for short-term leases and leases of low-value assets. In 20X5, the short-term lease expense is 30,000, of which 4,000 relates to short-term leases of low-value assets. The total expense for leases of low-value assets reaches 26,000, including those 4,000. What amount does Romarin disclose as the expense relating to leases of low-value assets?","es":""},"explanation":{"fr":"","en":"The expense relating to leases of low-value assets is disclosed excluding the short-term leases already included in the short-term lease expense (IFRS 16, para. 53): 26,000 − 4,000 = 22,000. The 4,000 remains within the 30,000 disclosed for short-term leases.","es":""},"common_error":{"fr":"","en":"Counting short-term leases of low-value assets twice.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"26,000","es":""},"correct":false,"feedback":{"fr":"","en":"The 4,000 would be counted twice: it is already in the short-term lease expense.","es":""}},{"id":"B","text":{"fr":"","en":"22,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"30,000","es":""},"correct":false,"feedback":{"fr":"","en":"This is the short-term lease expense, disclosed separately.","es":""}},{"id":"D","text":{"fr":"","en":"56,000","es":""},"correct":false,"feedback":{"fr":"","en":"This total adds both expenses and counts the 4,000 twice.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000218","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000218","tested_point":"QST.IFRS16.000218","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §55","IFRS 16 §53"],"exercise":{"prompt":{"fr":"","en":"The civil engineering company Garance accounts for its site crane leases under the short-term lease exemption. The expense for the year relates to cranes returned during the year; in December, Garance signed new short-term leases for another site, which commit it for several months of the following year. What additional information must it disclose?","es":""},"explanation":{"fr":"","en":"When the portfolio of short-term leases to which the lessee is committed at the reporting date differs from the portfolio to which the disclosed short-term lease expense relates (IFRS 16, para. 53), the lessee discloses the amount of its lease commitments for those leases (IFRS 16, para. 55). This is Garance's case, as the cranes of the year were returned and replaced by new leases.","es":""},"common_error":{"fr":"","en":"Thinking that the expense for the year always informs on future commitments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of its lease commitments for short-term leases outstanding at the reporting date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"None: the short-term lease expense for the year is sufficient in all cases.","es":""},"correct":false,"feedback":{"fr":"","en":"The expense for the year does not reflect the new commitments when the portfolio has changed.","es":""}},{"id":"C","text":{"fr":"","en":"Recognition of the new leases in the statement of financial position, since they span two years.","es":""},"correct":false,"feedback":{"fr":"","en":"Spanning two years does not call the exemption into question; this is a disclosure matter, not recognition.","es":""}},{"id":"D","text":{"fr":"","en":"Only the fact that it applies the exemption, with no amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Stating that the exemption is applied is not enough when the year-end portfolio differs.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000219","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000219","tested_point":"QST.IFRS16.000219","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §56","IFRS 16 §53"],"exercise":{"prompt":{"fr":"","en":"Hysope holds, as lessee, a right-of-use asset over a shopping centre that it subleases; according to the analysis provided, this right meets the definition of investment property. What information does Hysope disclose for this right-of-use asset?","es":""},"explanation":{"fr":"","en":"For right-of-use assets that meet the definition of investment property, the lessee applies the disclosure requirements of IAS 40; it is then not required to provide, for those assets, the information in items (a), (f), (h) and (j) of the list in para. 53 (IFRS 16, para. 56), that is depreciation, sublease income, additions to right-of-use assets and carrying amount by class (IFRS 16, para. 53).","es":""},"common_error":{"fr":"","en":"Providing the same information twice under IFRS 16 and IAS 40.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All the information in the IFRS 16 list, without applying IAS 40.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 40 applies to the disclosures relating to these right-of-use assets.","es":""}},{"id":"B","text":{"fr":"","en":"The IAS 40 disclosures and, in addition, the entire IFRS 16 list.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard exempts certain items of the list to avoid duplication with IAS 40.","es":""}},{"id":"C","text":{"fr":"","en":"No information, the right-of-use asset being presented within investment property.","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation in the statement of financial position does not remove the disclosures: IAS 40 applies.","es":""}},{"id":"D","text":{"fr":"","en":"The IAS 40 disclosures, with an exemption from certain amounts in the IFRS 16 list (depreciation, sublease income, additions and carrying amount).","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000220","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000220","tested_point":"QST.IFRS16.000220","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §57"],"exercise":{"prompt":{"fr":"","en":"The hotel group Verveine measures its owned hotels under the IAS 16 revaluation model and, according to the case data, also measures under that model the right-of-use assets over the hotels it leases. What information must it disclose for these revalued right-of-use assets?","es":""},"explanation":{"fr":"","en":"When the lessee measures right-of-use assets under the revaluation model of IAS 16, it discloses for those assets the information required by paragraph 77 of IAS 16 (IFRS 16, para. 57). The choice of this model is a datum of the case.","es":""},"common_error":{"fr":"","en":"Forgetting the disclosures specific to the revaluation model for right-of-use assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The IAS 40 disclosures on investment property.","es":""},"correct":false,"feedback":{"fr":"","en":"Hotels operated by Verveine are not investment property; the reference is to IAS 16.","es":""}},{"id":"B","text":{"fr":"","en":"The disclosures required by paragraph 77 of IAS 16 for revalued assets.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No information specific to the revaluation, the IFRS 16 list being sufficient.","es":""},"correct":false,"feedback":{"fr":"","en":"The general list does not cover the disclosures specific to the revaluation model.","es":""}},{"id":"D","text":{"fr":"","en":"Only the amount of the revaluation surplus, with no further detail.","es":""},"correct":false,"feedback":{"fr":"","en":"The reference covers all the disclosures of paragraph 77 of IAS 16, not a single amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000221","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000221","tested_point":"QST.IFRS16.000221","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §58"],"exercise":{"prompt":{"fr":"","en":"Valériane is preparing the maturity analysis of its lease liabilities. Which statements are accurate? (several answers)","es":""},"explanation":{"fr":"","en":"The lessee discloses a maturity analysis of its lease liabilities applying paragraphs 39 and B11 of IFRS 7, separately from the maturity analyses of other financial liabilities (IFRS 16, para. 58).","es":""},"common_error":{"fr":"","en":"Burying lease liabilities in the overall analysis of financial liabilities.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The analysis is based on the maturities of right-of-use assets, by class of underlying asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis covers lease liabilities, not right-of-use assets.","es":""}},{"id":"B","text":{"fr":"","en":"The analysis is prepared by applying paragraphs 39 and B11 of IFRS 7.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Lease liabilities may be merged into a single table with trade payables, without distinction.","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis of lease liabilities is presented separately from other financial liabilities.","es":""}},{"id":"D","text":{"fr":"","en":"The analysis of lease liabilities is presented separately from that of other financial liabilities.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"No analysis is required when lease liabilities are presented on a separate line in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation in the statement of financial position does not remove the need for the maturity analysis.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000222","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000222","tested_point":"QST.IFRS16.000222","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §60","IFRS 16 §53"],"exercise":{"prompt":{"fr":"","en":"Capucine recognises as an expense the payments for its short-term leases and its leases of low-value assets, under the simplified treatment provided by IFRS 16. Which statements on its disclosure obligations are accurate? (several answers)","es":""},"explanation":{"fr":"","en":"A lessee that applies the simplified treatment to short-term leases or leases of low-value assets discloses that fact (IFRS 16, para. 60). It also discloses the short-term lease expense, which may exclude leases of one month or less, and the expense for leases of low-value assets (IFRS 16, para. 53). As these leases give rise to no lease liability, they are not part of the maturity analysis of lease liabilities.","es":""},"common_error":{"fr":"","en":"Omitting the expense for exempt short-term and low-value leases.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No information is required, since these leases are not in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Not recognising them in the statement of financial position does not remove the disclosures: the use of the exemption and the expenses are disclosed.","es":""}},{"id":"B","text":{"fr":"","en":"Capucine discloses that it applies this simplified treatment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Capucine discloses the expense relating to short-term leases.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Capucine must include these leases in the maturity analysis of lease liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"These leases create no lease liability; the maturity analysis covers lease liabilities.","es":""}},{"id":"E","text":{"fr":"","en":"The short-term lease expense disclosed may exclude leases with a term of one month or less.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000225","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000225","tested_point":"QST.IFRS16.000225","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000012","section_id":"disclosure-objective"},"references":["IFRS 16 §53","IFRS 16 §59","IFRS 16 §B52"],"exercise":{"prompt":{"fr":"","en":"In 20X4, the Camélia group completed a sale and leaseback transaction on its head office (according to the case data, the transfer is a sale) and recognised a gain in profit or loss. The payments include a significant variable part not included in the lease liability. Which approach to disclosures is most appropriate?","es":""},"explanation":{"fr":"","en":"Gains or losses arising from sale and leaseback transactions are among the amounts the lessee discloses (IFRS 16, para. 53). The lessee also discloses the additional information needed on sale and leaseback transactions (IFRS 16, para. 59), which may cover the reasons for the transaction, its key terms, payments not included in the measurement of the lease liability and the cash flow effect (IFRS 16, para. B52). The significant variable part of Camélia's payments makes this information relevant.","es":""},"common_error":{"fr":"","en":"Considering that a sale and leaseback no longer falls within lessee disclosures once the asset is sold.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No information specific to the transaction: the head office is no longer an asset of Camélia.","es":""},"correct":false,"feedback":{"fr":"","en":"Camélia is now the lessee of the head office: the transaction falls within its lease disclosures.","es":""}},{"id":"B","text":{"fr":"","en":"Disclose the gain on the sale and leaseback among the required amounts, then consider information on the reasons for the transaction, its key terms, payments not included in the lease liability and the cash flow effect.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Show only the gain in the statement of profit or loss, with no note disclosure.","es":""},"correct":false,"feedback":{"fr":"","en":"The gain is one of the note amounts, and additional information may be needed.","es":""}},{"id":"D","text":{"fr":"","en":"Provide qualitative information only if the transaction produced a loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The need for information does not depend on whether the transaction produced a gain or a loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000226","standard_id":"IFRS16","concept_ids":["IFRS16.LESSEE_DISCLOSURE.REQUIREMENTS","IFRS16.LESSEE_SUBSEQUENT.RENT_CONCESSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000226","tested_point":"QST.IFRS16.000226","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000011","section_id":"covid-concessions"},"references":["IFRS 16 §60A","IFRS 16 §46A"],"exercise":{"prompt":{"fr":"","en":"Historical reminder. In its 2021 financial statements, the lessee Glycine applied the practical expedient for Covid-19-related rent concessions (applicable only to payments originally due on or before 30 June 2022). What information did it have to disclose in this respect? (several answers)","es":""},"explanation":{"fr":"","en":"A lessee applying the practical expedient (IFRS 16, para. 46A) disclosed whether it had applied it to all qualifying concessions or, if not, the nature of the contracts concerned, and the amount recognised in profit or loss to reflect changes in payments arising from those concessions (IFRS 16, para. 60A).","es":""},"common_error":{"fr":"","en":"Believing that the practical expedient required no disclosure.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The names of the lessors that granted a concession.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not require the identity of the lessors.","es":""}},{"id":"B","text":{"fr":"","en":"The incremental borrowing rate used to remeasure each lease liability concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"The expedient precisely removed the need to treat the concession as a modification remeasured at a revised rate.","es":""}},{"id":"C","text":{"fr":"","en":"Whether it had applied the expedient to all qualifying concessions or, if not, the nature of the contracts concerned.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The fair value of right-of-use assets at the date of each concession.","es":""},"correct":false,"feedback":{"fr":"","en":"No fair value of right-of-use assets was required.","es":""}},{"id":"E","text":{"fr":"","en":"The amount recognised in profit or loss to reflect changes in payments arising from concessions accounted for under the expedient.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000228","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000228","tested_point":"QST.IFRS16.000228","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":30,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §61"],"exercise":{"prompt":{"fr":"","en":"For a lessor, each lease must be classified in one of two categories only: finance lease or operating lease.","es":""},"explanation":{"fr":"","en":"The lessor places each of its leases in one of the two categories set by the standard: operating lease or finance lease (IFRS 16, para. 61). This classification then drives the whole lessor accounting model.","es":""},"common_error":{"fr":"","en":"Applying the lessee's single model (right-of-use asset and lease liability) to the lessor.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000229","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000229","tested_point":"QST.IFRS16.000229","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §62","IFRS 16 §63"],"exercise":{"prompt":{"fr":"","en":"IFRS 16 requires the lessor to classify as a finance lease any lease whose term covers at least 75% of the economic life of the underlying asset.","es":""},"explanation":{"fr":"","en":"The standard's criterion is qualitative: a lease is a finance lease if it transfers substantially all the risks and rewards incidental to ownership (IFRS 16, para. 62). A lease term covering the major part of the economic life is only a situation that would normally lead to that classification, assessed without any numerical threshold (IFRS 16, para. 63). A 75% threshold can only be an internal analysis benchmark, a matter of judgement, never an IFRS 16 rule.","es":""},"common_error":{"fr":"","en":"Presenting a 75% or 90% threshold as a rule of the standard.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000230","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000230","tested_point":"QST.IFRS16.000048","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §62"],"exercise":{"prompt":{"fr":"","en":"Which criterion leads a lessor to classify a lease as a finance lease rather than an operating lease?","es":""},"explanation":{"fr":"","en":"A lease is a finance lease when it transfers to the lessee substantially all the risks and rewards incidental to ownership of the underlying asset; otherwise it is an operating lease (IFRS 16, para. 62). A transfer of legal title is not required.","es":""},"common_error":{"fr":"","en":"Confusing transfer of legal title with transfer of risks and rewards.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The legal transfer of ownership of the asset to the lessee during the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"A transfer of title is not required: what matters is the economic transfer of risks and rewards.","es":""}},{"id":"B","text":{"fr":"","en":"The transfer to the lessee of substantially all the risks and rewards incidental to ownership.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The recognition by the lessee of a right-of-use asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessee recognises a right-of-use asset for almost all its leases; this says nothing about the lessor's classification.","es":""}},{"id":"D","text":{"fr":"","en":"A lease term longer than twelve months at the commencement date of the lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The twelve-month threshold relates to the lessee's short-term lease exemption, not to the lessor's classification.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000231","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000231","tested_point":"QST.IFRS16.000231","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §66"],"exercise":{"prompt":{"fr":"","en":"When does the lessor classify a lease, and when is that classification reassessed?","es":""},"explanation":{"fr":"","en":"Classification is made at the inception date and is reassessed only if there is a lease modification; changes in estimates, such as the economic life or the residual value, or in circumstances, such as a default by the lessee, do not give rise to a new classification (IFRS 16, para. 66).","es":""},"common_error":{"fr":"","en":"Reclassifying a lease after a mere change in estimate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At each reporting date, based on prevailing economic conditions.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is not revisited at each reporting date: it is fixed at the inception date, unless the lease is modified.","es":""}},{"id":"B","text":{"fr":"","en":"At the inception date; reassessed only if there is a lease modification.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the inception date; reassessed as soon as the residual value estimate changes.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the residual value estimate does not lead to a new classification.","es":""}},{"id":"D","text":{"fr":"","en":"At the commencement date, when the asset is made available; reassessed at each insurance renewal.","es":""},"correct":false,"feedback":{"fr":"","en":"The commencement date is when the asset is made available; classification happens earlier, at the inception date, and insurance has no effect.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000232","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000232","tested_point":"QST.IFRS16.000232","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §66"],"exercise":{"prompt":{"fr":"","en":"The lessor Orvalis classified a crane lease as a finance lease. Two years later, without any modification of the lease, it revises upwards the estimated economic life of the crane, so that the lease term no longer covers the major part of it. Orvalis must reclassify the lease as an operating lease.","es":""},"explanation":{"fr":"","en":"Classification is fixed at the inception date and is reassessed only if there is a lease modification. A revision of the estimated economic life is a change in estimate that does not give rise to a new classification (IFRS 16, para. 66). The lease remains a finance lease.","es":""},"common_error":{"fr":"","en":"Reclassifying a lease after a mere revision of the economic life or of the residual value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000233","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000233","tested_point":"QST.IFRS16.000233","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §63"],"exercise":{"prompt":{"fr":"","en":"Which of the following situations would normally, individually or in combination, lead the lessor to classify a lease as a finance lease?","es":""},"explanation":{"fr":"","en":"Classification depends on the substance of the transaction rather than the form of the contract. Situations that would normally lead to a finance lease include transfer of ownership by the end of the term, a purchase option whose exercise is reasonably certain at the inception date, and an asset so specialised that only the lessee can use it without major modifications (IFRS 16, para. 63). The frequency of payments and the legal title are not criteria.","es":""},"common_error":{"fr":"","en":"Relying on the contract's title rather than on its substance.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ownership of the asset is transferred to the lessee by the end of the lease term.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Payments are due monthly, in advance.","es":""},"correct":false,"feedback":{"fr":"","en":"The frequency and timing of payments do not on their own indicate a transfer of risks and rewards.","es":""}},{"id":"C","text":{"fr":"","en":"The lessee has an option to purchase at a price so low compared with the expected fair value that its exercise is reasonably certain at the inception date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The contract is legally titled operating lease agreement.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal form does not prevail: classification depends on the substance of the transaction.","es":""}},{"id":"E","text":{"fr":"","en":"The asset is so specialised that only the lessee can use it without major modifications.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000234","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000234","tested_point":"QST.IFRS16.000234","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §64"],"exercise":{"prompt":{"fr":"","en":"Calvenor, a lessor, reviews the clauses of a forklift truck lease. Which clauses are indicators that could also lead to a finance lease?","es":""},"explanation":{"fr":"","en":"Beyond the situations of paragraph 63, the following may also indicate a finance lease: the lessee bearing the lessor's losses on cancellation, gains or losses from fluctuations in the fair value of the residual accruing to the lessee, and the ability to continue the lease for a secondary period at a rent substantially lower than market rent (IFRS 16, para. 64). When the lessor keeps those fluctuations, it retains a risk and a reward of ownership; an inspection right is not among the indicators.","es":""},"common_error":{"fr":"","en":"Believing that the paragraph 64 indicators are always conclusive without an overall analysis.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"If the lessee cancels, it bears the lessor's losses associated with the cancellation.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The lessor alone keeps the gains and losses from fluctuations in the fair value of the residual.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: if the lessor keeps the residual value fluctuations, it retains a risk of ownership.","es":""}},{"id":"C","text":{"fr":"","en":"The lessee can continue the lease for a secondary period at a rent substantially lower than market rent.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Gains or losses from fluctuations in the fair value of the residual accrue to the lessee.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The lessor may inspect the trucks once a year.","es":""},"correct":false,"feedback":{"fr":"","en":"An inspection right is not among the indicators and transfers no risk or reward to the lessee.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000235","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000235","tested_point":"QST.IFRS16.000235","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §B53"],"exercise":{"prompt":{"fr":"","en":"To assess the transfer of the risks and rewards incidental to ownership, the lessor distinguishes risks from rewards. Which of the following is a reward rather than a risk?","es":""},"explanation":{"fr":"","en":"Classification is based on the extent to which the lease transfers the risks and rewards of ownership. Risks include losses from idle capacity or technological obsolescence and variations in return caused by changing economic conditions; rewards include the expectation of profitable operation over the economic life and gains from appreciation in value or realisation of the residual value (IFRS 16, para. B53).","es":""},"common_error":{"fr":"","en":"Limiting the analysis to risks and forgetting rewards, including the residual value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Losses from production capacity left idle for lack of orders.","es":""},"correct":false,"feedback":{"fr":"","en":"Idle capacity is a source of losses: it is a risk of ownership.","es":""}},{"id":"B","text":{"fr":"","en":"Losses from technological obsolescence of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Technological obsolescence is a risk of ownership, not a reward.","es":""}},{"id":"C","text":{"fr":"","en":"Variations in return caused by changing economic conditions.","es":""},"correct":false,"feedback":{"fr":"","en":"Variations in return caused by economic conditions are a risk of ownership.","es":""}},{"id":"D","text":{"fr":"","en":"A gain from appreciation in value or realisation of the residual value.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000236","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000601","tested_point":"VG.IFRS16.000601","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §63","IFRS 16 §62"],"exercise":{"prompt":{"fr":"","en":"The lessor Tervane leases a hydraulic press whose fair value at the inception date is {fair_value}. The lessee pays {number_of_payments} annual payments of {annual_payment}, in arrears; no residual value is guaranteed. For the classification analysis, Tervane discounts the lease payments at {discount_rate} (case datum). Compute the present value of the lease payments at the inception date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"A present value of the lease payments, at the inception date, amounting to at least substantially all of the fair value of the asset is a situation that would normally lead to a finance lease (IFRS 16, para. 63). Payments in arrears: annuity factor (1 − 1.08^−5) / 0.08 = 3.99271; present value = 100,000 × 3.99271 = 399,271 (rounded to the euro). It represents 399,271 / 420,000 = 95.1% of the fair value. Whether this is substantially all is a matter of professional judgement, within the overall analysis of the transfer of risks and rewards (IFRS 16, para. 62): the standard sets no numerical threshold.","es":""},"common_error":{"fr":"","en":"Comparing the undiscounted sum of payments (500,000) with the fair value.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"100000","unit":"EUR"},{"id":"number_of_payments","value":"5","unit":"YEARS"},{"id":"discount_rate","value":"8","unit":"PERCENT"},{"id":"fair_value","value":"420000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual payment in arrears","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Number of annual payments","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate used for the analysis","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Fair value of the press at the inception date","es":""},"value":"420000","unit":"EUR"}],"steps":[{"id":"PV_LEASE_PAYMENTS","label":{"fr":"","en":"Present value of the lease payments","es":""},"answer":399271,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PV_LEASE_PAYMENTS","meaning":{"fr":"","en":"Present value of the lease payments","es":""},"expression":"a * ((1 - 1 / (1 + b)^5) / b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment in arrears","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate used for the analysis","es":""},"value":8,"unit":"PERCENT"}],"result":399271,"unit":"EUR"}],"references":["REF.IFRS16.63","REF.IFRS16.62"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000237","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA","IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000601","tested_point":"VG.IFRS16.000601","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §63","IFRS 16 §70"],"exercise":{"prompt":{"fr":"","en":"Lumeria, a lessor, makes available a server rack with a fair value of {fair_value} at the inception date. The lease provides for {number_of_payments} annual payments of {annual_payment}, in advance, the first one at the commencement date. The lessee guarantees to the lessor a residual value of {guaranteed_residual} at the end of the fourth year. The discount rate used for the classification analysis is {discount_rate} (case datum). Compute the present value of the lease payments at the inception date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"For the lessor, lease payments include the residual value guarantee provided by the lessee (IFRS 16, para. 70). Payments in advance: factor 1 + (1 − 1.06^−3) / 0.06 = 3.673012; 60,000 × 3.673012 = 220,380.72. Guarantee: 20,000 × 1.06^−4 = 20,000 × 0.792094 = 15,841.87. Total: 236,222.59, i.e. 236,223 rounded to the euro, or 94.5% of the fair value. This comparison is a situation to be assessed for classification (IFRS 16, para. 63); whether it is substantially all is a matter of judgement, with no numerical threshold in the standard.","es":""},"common_error":{"fr":"","en":"Omitting the residual value guaranteed by the lessee.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"60000","unit":"EUR"},{"id":"number_of_payments","value":"4","unit":"YEARS"},{"id":"guaranteed_residual","value":"20000","unit":"EUR"},{"id":"discount_rate","value":"6","unit":"PERCENT"},{"id":"fair_value","value":"250000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Annual payment in advance","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Number of annual payments","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Residual value guaranteed by the lessee","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate used for the analysis","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Fair value of the server rack","es":""},"value":"250000","unit":"EUR"}],"steps":[{"id":"PV_LEASE_PAYMENTS","label":{"fr":"","en":"Present value of the lease payments","es":""},"answer":236223,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000238","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000602","tested_point":"VG.IFRS16.000602","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §B56","IFRS 16 §B55"],"exercise":{"prompt":{"fr":"","en":"The lessor Domaris leases for 25 years a plot of land and the warehouse built on it, for a single annual payment of {annual_payment}. To classify each element separately, Domaris must allocate this payment. At the inception date, the fair value of the leasehold interest in the land is {land_interest_fv} and that of the leasehold interest in the building is {building_interest_fv}. Compute the annual share of the payment allocated to the land and the share allocated to the building.","es":""},"explanation":{"fr":"","en":"The land and the building are classified separately (IFRS 16, para. B55). Where necessary, the lease payments are allocated in proportion to the relative fair values of the leasehold interests in each element at the inception date (IFRS 16, para. B56). Total: 1,200,000 + 2,800,000 = 4,000,000. Land: 150,000 × 1,200,000 / 4,000,000 = 45,000; building: 150,000 × 2,800,000 / 4,000,000 = 105,000.","es":""},"common_error":{"fr":"","en":"Splitting the payment equally between land and building.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"150000","unit":"EUR"},{"id":"land_interest_fv","value":"1200000","unit":"EUR"},{"id":"building_interest_fv","value":"2800000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Total annual payment","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the leasehold interest in the land","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the leasehold interest in the building","es":""},"value":"2800000","unit":"EUR"}],"steps":[{"id":"LAND_PAYMENT","label":{"fr":"","en":"Annual share allocated to the land","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"BUILDING_PAYMENT","label":{"fr":"","en":"Annual share allocated to the building","es":""},"answer":105000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LAND_PAYMENT","meaning":{"fr":"","en":"Annual share allocated to the land","es":""},"expression":"a * b / (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total annual payment","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the leasehold interest in the land","es":""},"value":1200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Fair value of the leasehold interest in the building","es":""},"value":2800000,"unit":"EUR"}],"result":45000,"unit":"EUR"},{"step":"BUILDING_PAYMENT","meaning":{"fr":"","en":"Annual share allocated to the building","es":""},"expression":"a * b / (c + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total annual payment","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the leasehold interest in the building","es":""},"value":2800000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Fair value of the leasehold interest in the land","es":""},"value":1200000,"unit":"EUR"}],"result":105000,"unit":"EUR"}],"rationale":{"fr":"","en":"The land and the building are classified separately (IFRS 16, para. B55).","es":""},"references":["REF.IFRS16.B56","REF.IFRS16.B55"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000239","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000602","tested_point":"VG.IFRS16.000602","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §B56","IFRS 16 §B55"],"exercise":{"prompt":{"fr":"","en":"The property company Belcastre leases out a hotel site made up of land and a building. At the commencement date, the lessee pays a lump-sum upfront payment of {upfront_payment}, then an annual payment of {annual_payment}. At the inception date, the fair values of the leasehold interests amount to {land_interest_fv} for the land and {building_interest_fv} for the building. Compute the share of the upfront payment and the share of the annual payment allocated to the building.","es":""},"explanation":{"fr":"","en":"Each element is classified separately (IFRS 16, para. B55). The allocation covers all lease payments, including lump-sum upfront payments, in proportion to the relative fair values of the leasehold interests at the inception date (IFRS 16, para. B56). Building share: 1,500,000 / (1,000,000 + 1,500,000) = 60%. Upfront payment: 400,000 × 60% = 240,000; annual payment: 90,000 × 60% = 54,000. The land receives 160,000 and 36,000.","es":""},"common_error":{"fr":"","en":"Allocating the whole upfront payment to the land or to the building.","es":""},"format":"CALCULATION","placeholders":[{"id":"upfront_payment","value":"400000","unit":"EUR"},{"id":"annual_payment","value":"90000","unit":"EUR"},{"id":"land_interest_fv","value":"1000000","unit":"EUR"},{"id":"building_interest_fv","value":"1500000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lump-sum upfront payment","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Annual payment","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the leasehold interest in the land","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the leasehold interest in the building","es":""},"value":"1500000","unit":"EUR"}],"steps":[{"id":"UPFRONT_BUILDING","label":{"fr":"","en":"Share of the upfront payment allocated to the building","es":""},"answer":240000,"tolerance":0,"unit":"EUR"},{"id":"ANNUAL_BUILDING","label":{"fr":"","en":"Share of the annual payment allocated to the building","es":""},"answer":54000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000240","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000240","tested_point":"QST.IFRS16.000240","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §B55","IFRS 16 §B57","IFRS 16 §63","IFRS 16 §66"],"exercise":{"prompt":{"fr":"","en":"Sarvel, a lessor, leases for 40 years a plot of land and the office building constructed on it. The economic life of the building is estimated at 45 years; the land represents a significant share of the value of the whole. The lease provides for neither transfer of ownership nor a purchase option, and the lease payments can be reliably allocated between the two elements. Which classification approach is appropriate?","es":""},"explanation":{"fr":"","en":"When a lease contains both land and building elements, the lessor classifies each element separately, considering that land normally has an indefinite economic life (IFRS 16, para. B55). For the building, a 40-year term over a 45-year life is to be assessed as a situation that would normally lead to a finance lease (IFRS 16, para. 63); for the land, that situation cannot operate in the same way, since its life is indefinite. Treating the whole as a single unit is only possible when the land element is immaterial (IFRS 16, para. B57), which is not the case here.","es":""},"common_error":{"fr":"","en":"Applying the building's economic life to the land although the land is significant.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Treat the whole as a single unit based on the building's economic life, then classify it as a block.","es":""},"correct":false,"feedback":{"fr":"","en":"A single unit is only possible when the land is immaterial; here it represents a significant share.","es":""}},{"id":"B","text":{"fr":"","en":"Classify each element separately, taking into account the normally indefinite economic life of land.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Classify the whole as an operating lease, since a lease that includes land can never be a finance lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not rule out a finance lease for a lease that includes land: it requires a separate analysis.","es":""}},{"id":"D","text":{"fr":"","en":"Defer classification until the commencement date, once the fair values of both elements are known.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is made at the inception date, not at the commencement date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000241","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000241","tested_point":"QST.IFRS16.000241","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §B56"],"exercise":{"prompt":{"fr":"","en":"The lessor Quintal leases a plot of land and the factory built on it. Lacking comparable transactions, it cannot reliably allocate the lease payments between the two elements. The analysis of the factory shows finance lease characteristics, and nothing clearly establishes that both elements would be operating leases. How should the lease be classified?","es":""},"explanation":{"fr":"","en":"Where necessary, lease payments are allocated between land and building in proportion to the relative fair values of the leasehold interests. When that allocation is not reliable, the entire lease is classified as a finance lease, unless it is clear that both elements are operating leases, in which case the entire lease is an operating lease (IFRS 16, para. B56). Here, nothing shows that both elements are operating leases: the whole lease is a finance lease.","es":""},"common_error":{"fr":"","en":"Using an arbitrary allocation key to keep the separate analysis.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an operating lease in full, out of prudence, since no reliable allocation is available.","es":""},"correct":false,"feedback":{"fr":"","en":"The default outcome set by the standard is the opposite: finance lease, unless it is clear that both elements are operating leases.","es":""}},{"id":"B","text":{"fr":"","en":"By splitting the payments equally, then classifying each element separately.","es":""},"correct":false,"feedback":{"fr":"","en":"An arbitrary equal split does not replace a reliable allocation based on the relative fair values of the leasehold interests.","es":""}},{"id":"C","text":{"fr":"","en":"As a finance lease for the lease as a whole.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As a finance lease for the factory and an operating lease for the land, based on an estimated split.","es":""},"correct":false,"feedback":{"fr":"","en":"Separation requires a reliable allocation of the payments, which is precisely missing here.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000242","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000242","tested_point":"QST.IFRS16.000242","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §65","IFRS 16 §63","IFRS 16 §66"],"exercise":{"prompt":{"fr":"","en":"The lessor Montrel leases for 4 years a flight simulator whose economic life is estimated at 15 years. At the end of the lease, ownership of the simulator transfers to the lessee for a variable payment equal to the simulator's fair value at that date. The payments over the term cover a small part of the initial fair value, and no other clause transfers any risk or reward to the lessee. Which classification is appropriate?","es":""},"explanation":{"fr":"","en":"Transfer of ownership by the end of the lease is a situation that would normally lead to a finance lease (IFRS 16, para. 63), but those examples are not always conclusive. When ownership transfers for a variable payment equal to the asset's fair value at that time, and it is clear from other features that substantially all the risks and rewards are not transferred, the lease is an operating lease (IFRS 16, para. 65). Here, the lessor keeps the value risk over 11 remaining years of life, paid at fair value.","es":""},"common_error":{"fr":"","en":"Treating each situation in paragraph 63 as automatically conclusive.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Finance lease, because any transfer of ownership at the end of the lease requires that classification.","es":""},"correct":false,"feedback":{"fr":"","en":"The situations of paragraph 63 are not always conclusive: a transfer at fair value does not transfer the value risk.","es":""}},{"id":"B","text":{"fr":"","en":"Operating lease, because the other features clearly show that the risks and rewards essentially remain with the lessor.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Finance lease on a provisional basis, with a new classification when ownership actually transfers.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is made once and for all at the inception date; there is no provisional classification.","es":""}},{"id":"D","text":{"fr":"","en":"No classification until the lessee has decided to pay the fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification must be made at the inception date, without waiting for the lessee's decision.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000243","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000243","tested_point":"QST.IFRS16.000243","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §63","IFRS 16 §62"],"exercise":{"prompt":{"fr":"","en":"The lessor Altiva designs and leases to the Ferrandis group a test bench configured for its production line only. No other user could use it without major modifications. Altiva keeps legal ownership of the bench. What conclusion should be drawn from this feature?","es":""},"explanation":{"fr":"","en":"An asset so specialised that only the lessee can use it without major modifications is one of the situations that would normally lead to a finance lease, classification depending on substance rather than legal form (IFRS 16, para. 63). The final conclusion concerns the transfer of substantially all the risks and rewards (IFRS 16, para. 62). No 90% threshold exists in the standard: such a percentage would only be an internal benchmark involving judgement.","es":""},"common_error":{"fr":"","en":"Letting legal ownership prevail over substance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is a situation that would normally lead to a finance lease, to be included in the overall analysis.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The lease is an operating lease, since the lessor remains the legal owner of the test bench.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal ownership does not decide classification: substance is what matters.","es":""}},{"id":"C","text":{"fr":"","en":"The specialised nature of the asset is irrelevant; only the term and the discounted amounts matter.","es":""},"correct":false,"feedback":{"fr":"","en":"The specialised nature of the asset is expressly among the situations to examine.","es":""}},{"id":"D","text":{"fr":"","en":"The lease becomes a finance lease only if its term reaches at least 90% of the economic life.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no numerical threshold; a 90% figure can only be a judgement benchmark.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000244","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000244","tested_point":"QST.IFRS16.000244","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §63","IFRS 16 §66"],"exercise":{"prompt":{"fr":"","en":"The lessor Pradelle leases a construction machine for 5 years. The lessee may buy it at the end of the lease for 5,000, whereas the expected fair value of the machine at that date is about 60,000. How is this option taken into account in the classification?","es":""},"explanation":{"fr":"","en":"A purchase option at a price sufficiently lower than the expected fair value for its exercise to be reasonably certain at the inception date is a situation that would normally lead to a finance lease (IFRS 16, para. 63). The assessment is made at the inception date; the later exercise of the option does not trigger a new classification, which is reassessed only if there is a lease modification (IFRS 16, para. 66).","es":""},"common_error":{"fr":"","en":"Waiting for the option to be exercised before taking it into account.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is only taken into account when the lessee actually exercises it.","es":""},"correct":false,"feedback":{"fr":"","en":"The option is assessed at the inception date, not when it is exercised.","es":""}},{"id":"B","text":{"fr":"","en":"Since its exercise is reasonably certain at the inception date, it would normally lead to a finance lease.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is never taken into account, as the lessor remains the owner until exercise.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard specifically lists this type of option among the situations that would normally lead to a finance lease.","es":""}},{"id":"D","text":{"fr":"","en":"It leads to an operating lease, then a reclassification as a finance lease if the lessee exercises it.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is reassessed only if there is a lease modification; exercising the option is not one.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000247","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000247","tested_point":"QST.IFRS16.000247","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §67"],"exercise":{"prompt":{"fr":"","en":"Cadrix, a lessor with no manufacturing activity, makes a machine available under a lease classified as a finance lease. What does it recognise at the commencement date?","es":""},"explanation":{"fr":"","en":"At the commencement date, the lessor recognises assets held under a finance lease and presents them as a receivable at an amount equal to the net investment in the lease (IFRS 16, para. 67). The machine is replaced by that receivable.","es":""},"common_error":{"fr":"","en":"Recognising the receivable at the gross amount of payments receivable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It keeps the machine in property, plant and equipment and depreciates it over its useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping the asset on the balance sheet and depreciating it is the operating lease model, not the finance lease model.","es":""}},{"id":"B","text":{"fr":"","en":"A receivable equal to the net investment in the lease.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A right-of-use asset equal to the present value of the payments.","es":""},"correct":false,"feedback":{"fr":"","en":"The right-of-use asset is recognised by the lessee, not by the lessor.","es":""}},{"id":"D","text":{"fr":"","en":"A receivable equal to the undiscounted total of the payments receivable over the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"The receivable is measured at the net investment, i.e. at present value, not at the gross total of the payments.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000248","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000248","tested_point":"QST.IFRS16.000248","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §70"],"exercise":{"prompt":{"fr":"","en":"The lessor Ostrea determines the lease payments to include in measuring its net investment at the commencement date. Which items, not yet received, are to be included?","es":""},"explanation":{"fr":"","en":"The payments included are those not received at the commencement date: fixed payments, including in-substance fixed payments, less lease incentives payable; variable payments that depend on an index or a rate, measured using the index or rate at the commencement date; residual value guarantees provided by the lessee, a related party or a third party able to discharge them; the exercise price of a purchase option that is reasonably certain to be exercised; and termination penalties if the lease term reflects the exercise of a termination option (IFRS 16, para. 70). Variable payments based on sales are not in that list, and the index used is the one at the commencement date, not a forecast.","es":""},"common_error":{"fr":"","en":"Including variable payments based on the lessee's activity.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fixed payments, less any lease incentives payable to the lessee.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Variable payments calculated on the lessee's future sales.","es":""},"correct":false,"feedback":{"fr":"","en":"Variable payments linked to future sales do not depend on an index or a rate: they are excluded.","es":""}},{"id":"C","text":{"fr":"","en":"The residual value guaranteed to the lessor by the lessee.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Variable payments linked to a price index, measured using the index at the commencement date.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Variable index-linked payments, measured using the index forecast for future years.","es":""},"correct":false,"feedback":{"fr":"","en":"The index used is the one at the commencement date, not a forecast of the future index.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000249","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000603","tested_point":"VG.IFRS16.000603","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §68","IFRS 16 §67"],"exercise":{"prompt":{"fr":"","en":"The lessor Sorelia enters into a finance lease of an agricultural tractor. The lessee pays {number_of_payments} annual payments of {annual_payment}, in arrears. At the end of the lease, the tractor returns to Sorelia, which expects an unguaranteed residual value of {unguaranteed_residual}. The interest rate implicit in the lease is {implicit_rate}. Compute the net investment in the lease at the commencement date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"The receivable is recognised at the net investment (IFRS 16, para. 67), measured using the interest rate implicit in the lease (IFRS 16, para. 68); it comprises the present value of the lease payments and of the unguaranteed residual value. Payments in arrears: 50,000 × (1 − 1.07^−5) / 0.07 = 50,000 × 4.100197 = 205,009.87. Unguaranteed residual value: 10,000 × 1.07^−5 = 10,000 × 0.712986 = 7,129.86. Net investment: 212,139.73, i.e. 212,140 rounded to the euro.","es":""},"common_error":{"fr":"","en":"Excluding the unguaranteed residual value (wrong result: 205,010).","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"50000","unit":"EUR"},{"id":"number_of_payments","value":"5","unit":"YEARS"},{"id":"unguaranteed_residual","value":"10000","unit":"EUR"},{"id":"implicit_rate","value":"7","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual payment in arrears","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Number of annual payments","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Unguaranteed residual value","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"7","unit":"PERCENT"}],"steps":[{"id":"NET_INVESTMENT","label":{"fr":"","en":"Net investment in the lease","es":""},"answer":212140,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000250","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000603","tested_point":"VG.IFRS16.000603","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §70","IFRS 16 §68"],"exercise":{"prompt":{"fr":"","en":"Halvane, a lessor, leases a medical scanner to a clinic under a finance lease. The lease provides for {number_of_payments} annual payments of {annual_payment}, in advance; the first one is received at the commencement date. At the end of the lease, the expected residual value of 42,000 is split into a portion guaranteed by the clinic of {guaranteed_residual} and an unguaranteed portion of {unguaranteed_residual}. The interest rate implicit in the lease is {implicit_rate}. Compute the net investment at the commencement date, after receipt of the first payment, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"Only payments not received at the commencement date enter the net investment, and the residual value guarantee provided by the lessee is part of them (IFRS 16, para. 70); the unguaranteed residual value is added, all discounted at the implicit rate (IFRS 16, para. 68). The 3 remaining payments are received at the end of years 1 to 3: 80,000 × (1 − 1.05^−3) / 0.05 = 80,000 × 2.723248 = 217,859.84. Total residual value received at the end of year 4: (30,000 + 12,000) × 1.05^−4 = 42,000 × 0.822702 = 34,553.50. Net investment: 217,859.84 + 34,553.50 = 252,413.34, i.e. 252,413 rounded to the euro.","es":""},"common_error":{"fr":"","en":"Omitting the unguaranteed portion of the residual value.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_payment","value":"80000","unit":"EUR"},{"id":"number_of_payments","value":"4","unit":"YEARS"},{"id":"guaranteed_residual","value":"30000","unit":"EUR"},{"id":"unguaranteed_residual","value":"12000","unit":"EUR"},{"id":"implicit_rate","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Annual payment in advance","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Number of annual payments","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Residual value guaranteed by the lessee","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Unguaranteed residual value","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"NET_INVESTMENT","label":{"fr":"","en":"Net investment after receipt of the first payment","es":""},"answer":252413,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000251","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000604","tested_point":"VG.IFRS16.000604","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §69","IFRS 16 §68"],"exercise":{"prompt":{"fr":"","en":"The lessor Cerizay leases a packaging line with a fair value of {fair_value}. To conclude the lease, it incurred initial direct costs of {initial_direct_costs} (negotiation and drafting fees). The lessee pays {number_of_payments} annual payments of {annual_payment}, in arrears, and Cerizay expects an unguaranteed residual value of {unguaranteed_residual}. The interest rate implicit in the lease, which takes the initial direct costs into account, is {implicit_rate}. Compute the net investment at the commencement date, rounded to the nearest euro.","es":""},"explanation":{"fr":"","en":"The initial direct costs of a lessor that is not a manufacturer or dealer are included in the initial measurement of the net investment; the implicit rate is defined so that they are included automatically, without being added separately (IFRS 16, para. 69). The net investment is therefore the present value at the implicit rate (IFRS 16, para. 68): payments 22,000 × (1 − 1.06^−5) / 0.06 = 22,000 × 4.212364 = 92,672.00; unguaranteed residual value 6,000 × 1.06^−5 = 6,000 × 0.747258 = 4,483.55. Total: 97,155.55, i.e. 97,156 rounded to the euro, which matches the fair value plus the initial direct costs (95,356 + 1,800).","es":""},"common_error":{"fr":"","en":"Adding the initial direct costs to the present value (wrong result: 98,956).","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"95356","unit":"EUR"},{"id":"initial_direct_costs","value":"1800","unit":"EUR"},{"id":"annual_payment","value":"22000","unit":"EUR"},{"id":"number_of_payments","value":"5","unit":"YEARS"},{"id":"unguaranteed_residual","value":"6000","unit":"EUR"},{"id":"implicit_rate","value":"6","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of the packaging line","es":""},"value":"95356","unit":"EUR"},{"label":{"fr":"","en":"Lessor's initial direct costs","es":""},"value":"1800","unit":"EUR"},{"label":{"fr":"","en":"Annual payment in arrears","es":""},"value":"22000","unit":"EUR"},{"label":{"fr":"","en":"Number of annual payments","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Unguaranteed residual value","es":""},"value":"6000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"NET_INVESTMENT","label":{"fr":"","en":"Net investment in the lease","es":""},"answer":97156,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000252","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000604","tested_point":"VG.IFRS16.000604","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §69","IFRS 16 §68"],"exercise":{"prompt":{"fr":"","en":"An equipment finance company, Velaris, makes available to a laboratory a spectrometer whose fair value is {fair_value}. The broker commissions and legal fees directly related to concluding the lease amount to {initial_direct_costs}. The laboratory pays {annual_payment} at the end of each of the {number_of_payments} years of the lease; Velaris will then recover the device, whose unguaranteed residual value is estimated at {unguaranteed_residual}. The implicit rate, which includes these initial direct costs, is {implicit_rate}. What amount of net investment does Velaris recognise at the commencement date (rounded to the euro)?","es":""},"explanation":{"fr":"","en":"The initial direct costs of Velaris, which is neither a manufacturer nor a dealer, are included in the net investment through the implicit rate, without being added separately; they will reduce the finance income recognised over the lease term (IFRS 16, para. 69). Present value at the implicit rate (IFRS 16, para. 68): payments 41,500 × (1 − 1.06^−3) / 0.06 = 41,500 × 2.673012 = 110,930.00; unguaranteed residual value 9,000 × 1.06^−3 = 9,000 × 0.839619 = 7,556.57. Total: 118,486.57, i.e. 118,487 rounded to the euro, equal to 116,087 + 2,400.","es":""},"common_error":{"fr":"","en":"Adding the initial direct costs a second time (wrong result: 120,887).","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"116087","unit":"EUR"},{"id":"initial_direct_costs","value":"2400","unit":"EUR"},{"id":"annual_payment","value":"41500","unit":"EUR"},{"id":"number_of_payments","value":"3","unit":"YEARS"},{"id":"unguaranteed_residual","value":"9000","unit":"EUR"},{"id":"implicit_rate","value":"6","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of the spectrometer","es":""},"value":"116087","unit":"EUR"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"2400","unit":"EUR"},{"label":{"fr":"","en":"Annual payment at the end of each year","es":""},"value":"41500","unit":"EUR"},{"label":{"fr":"","en":"Number of years of the lease","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Unguaranteed residual value","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"NET_INVESTMENT","label":{"fr":"","en":"Net investment at the commencement date","es":""},"answer":118487,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000255","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000255","tested_point":"QST.IFRS16.000255","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §68"],"exercise":{"prompt":{"fr":"","en":"Novalis, lessee of an office floor, subleases part of it under a sublease classified as a finance lease. The interest rate implicit in the sublease cannot be readily determined. Which solution does IFRS 16 expressly provide for measuring Novalis's net investment?","es":""},"explanation":{"fr":"","en":"The lessor measures the net investment using the interest rate implicit in the lease. For a sublease whose implicit rate cannot be readily determined, the intermediate lessor may use the discount rate used for the head lease, adjusted for any initial direct costs associated with the sublease (IFRS 16, para. 68).","es":""},"common_error":{"fr":"","en":"Forgetting the adjustment for the sublease's initial direct costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use the rate of a risk-free investment of the same maturity.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not provide for a risk-free rate in this situation.","es":""}},{"id":"B","text":{"fr":"","en":"Do not discount and use the total sublease payments receivable.","es":""},"correct":false,"feedback":{"fr":"","en":"The net investment is a present value: the gross total of payments is not appropriate.","es":""}},{"id":"C","text":{"fr":"","en":"Use the discount rate of the head lease, adjusted for the sublease's initial direct costs.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Use the average yield on Novalis's investment portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"The yield on the intermediate lessor's investments is not the solution provided by the standard.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000256","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000606","tested_point":"VG.IFRS16.000606","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §71"],"exercise":{"prompt":{"fr":"","en":"The machine-tool manufacturer Korvo offers its customers a choice between buying and leasing. It enters into a finance lease of a machining centre held in its inventory at a cost of {cost}, whose normal cash selling price, equal to its fair value, is {cash_price}. The customer makes {number_of_payments} annual payments of {annual_payment}, in arrears; Korvo expects an unguaranteed residual value of {unguaranteed_residual}. The market rate, which is also the rate in the lease, is {market_rate}. Compute, rounding each present value to the euro, the revenue, the cost of sales and the selling profit at the commencement date.","es":""},"explanation":{"fr":"","en":"At the commencement date, a manufacturer lessor recognises revenue equal to the fair value of the asset or, if lower, the present value of the lease payments discounted at a market rate, and a cost of sales equal to the cost of the asset less the present value of the unguaranteed residual value (IFRS 16, para. 71). Payments: 28,000 × (1 − 1.08^−4) / 0.08 = 28,000 × 3.312127 = 92,739.55, i.e. 92,740; this amount is lower than 96,415, hence revenue of 92,740. Unguaranteed residual value: 5,000 × 1.08^−4 = 5,000 × 0.735030 = 3,675.15, i.e. 3,675. Cost of sales: 70,000 − 3,675 = 66,325. Selling profit: 92,740 − 66,325 = 26,415, i.e. the cash price less cost (96,415 − 70,000).","es":""},"common_error":{"fr":"","en":"Using fair value as revenue and the full cost as cost of sales, ignoring the unguaranteed residual value.","es":""},"format":"CALCULATION","placeholders":[{"id":"cost","value":"70000","unit":"EUR"},{"id":"cash_price","value":"96415","unit":"EUR"},{"id":"annual_payment","value":"28000","unit":"EUR"},{"id":"number_of_payments","value":"4","unit":"YEARS"},{"id":"unguaranteed_residual","value":"5000","unit":"EUR"},{"id":"market_rate","value":"8","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Cost of the machining centre in inventory","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Cash selling price (fair value)","es":""},"value":"96415","unit":"EUR"},{"label":{"fr":"","en":"Annual payment in arrears","es":""},"value":"28000","unit":"EUR"},{"label":{"fr":"","en":"Number of annual payments","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Unguaranteed residual value","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Market rate of interest","es":""},"value":"8","unit":"PERCENT"}],"steps":[{"id":"REVENUE","label":{"fr":"","en":"Revenue","es":""},"answer":92740,"tolerance":0,"unit":"EUR"},{"id":"COST_OF_SALES","label":{"fr":"","en":"Cost of sales","es":""},"answer":66325,"tolerance":0,"unit":"EUR"},{"id":"SELLING_PROFIT","label":{"fr":"","en":"Selling profit","es":""},"answer":26415,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"SELLING_PROFIT","meaning":{"fr":"","en":"Selling profit","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revenue","es":""},"value":92740,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cost of sales","es":""},"value":66325,"unit":"EUR"}],"result":26415,"unit":"EUR"}],"rationale":{"fr":"","en":"At the commencement date, a manufacturer lessor recognises revenue equal to the fair value of the asset or, if lower, the present value of the lease payments discounted at a market rate, and a cost of sales equal to the cost of the asset less the present value of the unguaranteed residual value (IFRS 16, para. 71).","es":""},"references":["REF.IFRS16.71"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000257","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000606","tested_point":"VG.IFRS16.000606","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §73","IFRS 16 §71"],"exercise":{"prompt":{"fr":"","en":"The car dealer Velquin launches a promotional finance lease offer at an advertised rate of {promotional_rate}, artificially low, whereas the market rate for this type of customer is {market_rate}. A van, bought for {cost} and sold for cash at {cash_price} (fair value), is leased for {number_of_payments} annual payments of {annual_payment}, in arrears; ownership transfers to the customer at the end of the lease, with no residual value for Velquin. Compute the revenue and the selling profit to recognise at the commencement date, rounded to the euro.","es":""},"explanation":{"fr":"","en":"When a dealer offers an artificially low interest rate, the selling profit recognised at the commencement date cannot exceed the profit that a market rate would have produced (IFRS 16, para. 73). Revenue is the lower of fair value and the present value of the payments at a market rate (IFRS 16, para. 71): 17,000 × (1 − 1.09^−3) / 0.09 = 17,000 × 2.531295 = 43,032.01, i.e. 43,032, lower than 50,000. Selling profit: 43,032 − 38,000 = 5,032. At the promotional rate, one would obtain 17,000 × 2.940985 = 49,996.75 and an overstated profit of about 11,997.","es":""},"common_error":{"fr":"","en":"Discounting at the promotional rate and recognising an overstated selling profit.","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_price","value":"50000","unit":"EUR"},{"id":"cost","value":"38000","unit":"EUR"},{"id":"annual_payment","value":"17000","unit":"EUR"},{"id":"number_of_payments","value":"3","unit":"YEARS"},{"id":"promotional_rate","value":"1","unit":"PERCENT"},{"id":"market_rate","value":"9","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Cash selling price (fair value)","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Purchase cost of the vehicle","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Annual payment in arrears","es":""},"value":"17000","unit":"EUR"},{"label":{"fr":"","en":"Number of annual payments","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Advertised promotional rate","es":""},"value":"1","unit":"PERCENT"},{"label":{"fr":"","en":"Market rate of interest","es":""},"value":"9","unit":"PERCENT"}],"steps":[{"id":"REVENUE","label":{"fr":"","en":"Revenue","es":""},"answer":43032,"tolerance":0,"unit":"EUR"},{"id":"SELLING_PROFIT","label":{"fr":"","en":"Selling profit","es":""},"answer":5032,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"SELLING_PROFIT","meaning":{"fr":"","en":"Selling profit","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revenue","es":""},"value":43032,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Purchase cost of the vehicle","es":""},"value":38000,"unit":"EUR"}],"result":5032,"unit":"EUR"}],"rationale":{"fr":"","en":"When a dealer offers an artificially low interest rate, the selling profit recognised at the commencement date cannot exceed the profit that a market rate would have produced (IFRS 16, para. 73).","es":""},"references":["REF.IFRS16.73","REF.IFRS16.71"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000259","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000259","tested_point":"QST.IFRS16.000259","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §74","IFRS 16 §71","IFRS 16 §72"],"exercise":{"prompt":{"fr":"","en":"The industrial printer manufacturer Ventaris enters into a finance lease with a customer. To obtain this lease, it incurred 3,000 of sales commissions and legal fees. Legal title to the printer will pass to the customer only at the end of the lease. The management accountant proposes to include this 3,000 in the net investment as initial direct costs and to defer the selling profit until title passes. Which position complies with IFRS 16?","es":""},"explanation":{"fr":"","en":"Costs incurred by a manufacturer or dealer lessor in connection with obtaining a finance lease are recognised as an expense at the commencement date, because they are mainly related to earning the selling profit; they are excluded from initial direct costs and therefore from the net investment (IFRS 16, para. 74). The selling profit is recognised at the commencement date, whether or not the asset is transferred as described in IFRS 15 (IFRS 16, para. 71). The manufacturer thus obtains a result equivalent to an outright sale, then finance income over the lease term (IFRS 16, para. 72).","es":""},"common_error":{"fr":"","en":"Treating a manufacturer's costs like those of a finance lessor.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Include the 3,000 in the net investment and defer the profit until title passes.","es":""},"correct":false,"feedback":{"fr":"","en":"For a manufacturer, these costs are excluded from initial direct costs, and the profit does not wait for title to pass.","es":""}},{"id":"B","text":{"fr":"","en":"Capitalise the 3,000 as a prepaid expense amortised over the lease term and recognise the profit at the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"Costs of obtaining the lease are an expense at the commencement date, not an expense spread over the lease term.","es":""}},{"id":"C","text":{"fr":"","en":"Expense the 3,000 and defer the profit until title passes to the customer.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment of the costs is correct, but the selling profit is recognised at the commencement date, without waiting for title to pass.","es":""}},{"id":"D","text":{"fr":"","en":"Expense the 3,000 at the commencement date and recognise the selling profit at that date too.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000260","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000260","tested_point":"QST.IFRS16.000260","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"finance-income"},"references":["IFRS 16 §75","IFRS 16 §76"],"exercise":{"prompt":{"fr":"","en":"Orvane, a lessor, has classified a lease of medical equipment as a finance lease. On what pattern does it recognise finance income over the lease term?","es":""},"explanation":{"fr":"","en":"The lessor recognises finance income over the lease term on a pattern reflecting a constant periodic rate of return on its net investment in the lease (IFRS 16, para. 75). Lease payments received are applied against the gross investment and reduce both the principal and the unearned finance income: they are not income in themselves (IFRS 16, para. 76). Finance income therefore decreases as the net investment decreases.","es":""},"common_error":{"fr":"","en":"Confusing the payment collected with the finance income of the period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In equal parts each year: the total finance income expected under the contract is divided by the number of years in the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"An equal split ignores the decrease in the net investment: income must reflect a constant rate of return on the outstanding balance, and therefore decrease with it.","es":""}},{"id":"B","text":{"fr":"","en":"On a pattern reflecting a constant periodic rate of return on its net investment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Equal to the amount of lease payments collected in each period.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments collected reduce the net investment and the unearned income; only the portion representing the return on the net investment is income.","es":""}},{"id":"D","text":{"fr":"","en":"In full at the commencement date, since the contract is treated as a sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Finance income is spread over the lease term; it cannot be recognised in full at the commencement date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000261","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000701","tested_point":"VG.IFRS16.000701","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"finance-income"},"references":["IFRS 16 §75","IFRS 16 §76"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Talvio, a lessor, recognises a finance lease of a bottling line. The net investment in the lease amounts to {net_investment_start} at that date; the interest rate implicit in the lease is {implicit_rate}. The lessee pays an annual lease payment of {annual_receipt} on 31 December of each year (in arrears). Compute the finance income for 20X1 and the net investment at 31 December 20X1.","es":""},"explanation":{"fr":"","en":"Finance income reflects a constant rate of return on the net investment (IFRS 16, para. 75): 100,000 × 8% = 8,000. The payment received at year-end is applied against the gross investment and reduces the principal and the unearned income (IFRS 16, para. 76): net investment at 31 December 20X1 = 100,000 + 8,000 − 25,000 = 83,000.","es":""},"common_error":{"fr":"","en":"Recognising the 25,000 payment as income.","es":""},"format":"CALCULATION","placeholders":[{"id":"net_investment_start","value":"100000","unit":"EUR"},{"id":"implicit_rate","value":"8","unit":"PERCENT"},{"id":"annual_receipt","value":"25000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Net investment at 1 January 20X1","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Annual payment received at year-end","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"FINANCE_INCOME_Y1","label":{"fr":"","en":"Finance income 20X1","es":""},"answer":8000,"tolerance":0,"unit":"EUR"},{"id":"NET_INVESTMENT_END_Y1","label":{"fr":"","en":"Net investment at 31 December 20X1","es":""},"answer":83000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FINANCE_INCOME_Y1","meaning":{"fr":"","en":"Finance income 20X1","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net investment at 1 January 20X1","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":8,"unit":"PERCENT"}],"result":8000,"unit":"EUR","rationale":{"fr":"","en":"Finance income reflects a constant rate of return on the net investment (IFRS 16, para. 75): 100,000 × 8% = 8,000.","es":""}},{"step":"NET_INVESTMENT_END_Y1","meaning":{"fr":"","en":"Net investment at 31 December 20X1","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net investment at 1 January 20X1","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Finance income 20X1","es":""},"value":8000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Annual payment received at year-end","es":""},"value":25000,"unit":"EUR"}],"result":83000,"unit":"EUR","rationale":{"fr":"","en":"The payment received at year-end is applied against the gross investment and reduces the principal and the unearned income (IFRS 16, para. 76): net investment at 31 December 20X1 = 100,000 + 8,000 − 25,000 = 83,000.","es":""}}],"references":["REF.IFRS16.75","REF.IFRS16.76"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000262","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000701","tested_point":"VG.IFRS16.000701","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"finance-income"},"references":["IFRS 16 §75","IFRS 16 §76"],"exercise":{"prompt":{"fr":"","en":"Meridal, a company financing agricultural equipment, leased a combine harvester under a finance lease on 1 January 20X1. Its net investment in the lease at that date is {net_investment_start}, at an interest rate implicit in the lease of {implicit_rate}. The customer pays {annual_receipt} every 31 December, in arrears. Determine the finance income for 20X2 and the net investment at 31 December 20X2.","es":""},"explanation":{"fr":"","en":"Finance income is computed at a constant rate on the opening net investment of each year (IFRS 16, para. 75), and each payment received reduces that investment (IFRS 16, para. 76). 20X1: 250,000 × 6% = 15,000; closing 250,000 + 15,000 − 60,000 = 205,000. 20X2: 205,000 × 6% = 12,300; closing 205,000 + 12,300 − 60,000 = 157,300.","es":""},"common_error":{"fr":"","en":"Applying the rate to the initial net investment for 20X2 (15,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"net_investment_start","value":"250000","unit":"EUR"},{"id":"implicit_rate","value":"6","unit":"PERCENT"},{"id":"annual_receipt","value":"60000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Net investment at the commencement date","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"6","unit":"PERCENT"},{"label":{"fr":"","en":"Annual payment (in arrears)","es":""},"value":"60000","unit":"EUR"}],"steps":[{"id":"FINANCE_INCOME_Y2","label":{"fr":"","en":"Finance income 20X2","es":""},"answer":12300,"tolerance":0,"unit":"EUR"},{"id":"NET_INVESTMENT_END_Y2","label":{"fr":"","en":"Net investment at 31 December 20X2","es":""},"answer":157300,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FINANCE_INCOME_Y2","meaning":{"fr":"","en":"Finance income 20X2","es":""},"expression":"(a + (a * b) - c) * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net investment at the commencement date","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":6,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Annual payment (in arrears)","es":""},"value":60000,"unit":"EUR"}],"result":12300,"unit":"EUR"},{"step":"NET_INVESTMENT_END_Y2","meaning":{"fr":"","en":"Net investment at 31 December 20X2","es":""},"expression":"(a + (a * b) - c) + d - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net investment at the commencement date","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":6,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Annual payment (in arrears)","es":""},"value":60000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Finance income 20X2","es":""},"value":12300,"unit":"EUR"}],"result":157300,"unit":"EUR"}],"rationale":{"fr":"","en":"Finance income is computed at a constant rate on the opening net investment of each year (IFRS 16, para. 75), and each payment received reduces that investment (IFRS 16, para. 76).","es":""},"references":["REF.IFRS16.75","REF.IFRS16.76"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000265","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT","IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000265","tested_point":"QST.IFRS16.000265","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §76","IFRS 16 §77","IFRS 16 §67"],"exercise":{"prompt":{"fr":"","en":"After the commencement date of a finance lease, which statements about the lessor's accounting are correct? (several answers)","es":""},"explanation":{"fr":"","en":"Lease payments of the period are applied against the gross investment and reduce both the principal and the unearned finance income (IFRS 16, para. 76). The net investment is subject to the derecognition and impairment requirements of IFRS 9, and estimated unguaranteed residual values are reviewed regularly (IFRS 16, para. 77). From the commencement date, assets held under the lease are presented as a receivable equal to the net investment (IFRS 16, para. 67): the lessor therefore does not depreciate the underlying asset.","es":""},"common_error":{"fr":"","en":"Treating a finance lease like an operating lease after the commencement date.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The payment collected is recognised in full as income of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The payment is not income in full: it repays the principal and the unearned finance income.","es":""}},{"id":"B","text":{"fr":"","en":"The payment collected is applied against the gross investment and reduces both the principal and the unearned finance income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The lessor continues to depreciate the underlying asset within its property, plant and equipment.","es":""},"correct":false,"feedback":{"fr":"","en":"The underlying asset has been replaced by a receivable equal to the net investment; the lessor no longer depreciates it.","es":""}},{"id":"D","text":{"fr":"","en":"The derecognition and impairment requirements of IFRS 9 apply to the net investment.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The estimated unguaranteed residual values used in the gross investment are reviewed regularly.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000266","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT","IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000266","tested_point":"QST.IFRS16.000266","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §77","IFRS 16 §66"],"exercise":{"prompt":{"fr":"","en":"Hexaline leases industrial presses under finance leases for six years. At the end of the second year, its annual review leads it to lower the estimate of the unguaranteed residual value of one of the presses, which was included in the gross investment. No other term of the contract changes. What treatment must Hexaline apply?","es":""},"explanation":{"fr":"","en":"The lessor regularly reviews estimated unguaranteed residual values. If there is a reduction, it revises the income allocation over the lease term and immediately recognises any reduction in respect of amounts already accrued (IFRS 16, para. 77). A revised estimate of residual value does not call into question the lease classification, which is reassessed only if the lease is modified (IFRS 16, para. 66).","es":""},"common_error":{"fr":"","en":"Confusing a revised estimate with a lease modification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No adjustment before the end of the lease, since the residual value is only realised when the press is returned.","es":""},"correct":false,"feedback":{"fr":"","en":"The lower estimate must be dealt with as soon as the review identifies it; waiting for the end of the lease overstates the net investment.","es":""}},{"id":"B","text":{"fr":"","en":"Reclassify the lease as an operating lease, since the lessor now bears more risks on the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A change in the estimate of residual value does not give rise to a new classification of the lease.","es":""}},{"id":"C","text":{"fr":"","en":"Revise the income allocation over the lease term and immediately recognise the reduction relating to amounts already accrued.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Change only the finance income of future years, the amounts already recognised remaining unchanged whatever the decrease observed.","es":""},"correct":false,"feedback":{"fr":"","en":"A purely prospective adjustment is not enough: the reduction relating to amounts already accrued is recognised immediately.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000267","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000703","tested_point":"VG.IFRS16.000703","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"finance-income"},"references":["IFRS 16 §75","IFRS 16 §76"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Solvane, a lessor, entered into a three-year finance lease of a welding robot. The lessee makes three annual payments of {annual_receipt}, each on 31 December (in arrears). Solvane estimates the unguaranteed residual value of the robot at the end of the lease at {unguaranteed_rv}. At the interest rate implicit in the lease of {implicit_rate}, the net investment at the commencement date is {net_investment_start}. Compute the total finance income to be recognised over the lease term and the finance income for 20X2.","es":""},"explanation":{"fr":"","en":"Check of the net investment: 38,000 / 1.1 + 38,000 / 1.21 + (38,000 + 7,320) / 1.331 = 100,000. Gross investment: 3 × 38,000 + 7,320 = 121,320; the unearned finance income, allocated over the lease term, is 121,320 − 100,000 = 21,320 (IFRS 16, para. 76). Allocation at a constant rate (IFRS 16, para. 75): 20X1: 100,000 × 10% = 10,000, balance 72,000; 20X2: 72,000 × 10% = 7,200, balance 41,200; 20X3: 41,200 × 10% = 4,120. Total 10,000 + 7,200 + 4,120 = 21,320.","es":""},"common_error":{"fr":"","en":"Leaving the unguaranteed residual value out of the gross investment.","es":""},"format":"CALCULATION","placeholders":[{"id":"net_investment_start","value":"100000","unit":"EUR"},{"id":"implicit_rate","value":"10","unit":"PERCENT"},{"id":"annual_receipt","value":"38000","unit":"EUR"},{"id":"unguaranteed_rv","value":"7320","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Net investment at 1 January 20X1","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Annual payment (in arrears)","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Estimated unguaranteed residual value","es":""},"value":"7320","unit":"EUR"}],"steps":[{"id":"TOTAL_FINANCE_INCOME","label":{"fr":"","en":"Total finance income over the lease term","es":""},"answer":21320,"tolerance":0,"unit":"EUR"},{"id":"FINANCE_INCOME_Y2","label":{"fr":"","en":"Finance income 20X2","es":""},"answer":7200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_FINANCE_INCOME","meaning":{"fr":"","en":"Total finance income over the lease term","es":""},"expression":"(3 * a + b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment (in arrears)","es":""},"value":38000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Estimated unguaranteed residual value","es":""},"value":7320,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Net investment at 1 January 20X1","es":""},"value":100000,"unit":"EUR"}],"result":21320,"unit":"EUR","rationale":{"fr":"","en":"the unearned finance income, allocated over the lease term, is 121,320 − 100,000 = 21,320 (IFRS 16, para. 76).","es":""}}],"references":["REF.IFRS16.75","REF.IFRS16.76"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000268","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000703","tested_point":"VG.IFRS16.000703","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"finance-income"},"references":["IFRS 16 §75","IFRS 16 §76"],"exercise":{"prompt":{"fr":"","en":"The fleet lessor Quarzo provides a refrigerated truck to a carrier under a three-year finance lease. Payments of {annual_receipt} are made in arrears, at the end of each year. Quarzo uses an unguaranteed residual value of {unguaranteed_rv} at the end of the lease. The interest rate implicit in the lease is {implicit_rate} and the initial net investment is {net_investment_start}. What is the unearned finance income at the commencement date, and what finance income will Quarzo recognise for the third year?","es":""},"explanation":{"fr":"","en":"Check: 70,000 / 1.05 + 70,000 / 1.1025 + (70,000 + 10,850) / 1.157625 = 200,000. Gross investment: 3 × 70,000 + 10,850 = 220,850; unearned income: 220,850 − 200,000 = 20,850 (IFRS 16, para. 76). Constant-rate schedule (IFRS 16, para. 75): year 1: 200,000 × 5% = 10,000, balance 140,000; year 2: 140,000 × 5% = 7,000, balance 77,000; year 3: 77,000 × 5% = 3,850, balance 10,850 equal to the unguaranteed residual value.","es":""},"common_error":{"fr":"","en":"Dividing the unearned income by three (6,950 a year).","es":""},"format":"CALCULATION","placeholders":[{"id":"net_investment_start","value":"200000","unit":"EUR"},{"id":"implicit_rate","value":"5","unit":"PERCENT"},{"id":"annual_receipt","value":"70000","unit":"EUR"},{"id":"unguaranteed_rv","value":"10850","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Initial net investment","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Interest rate implicit in the lease","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Annual payment in arrears","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Unguaranteed residual value","es":""},"value":"10850","unit":"EUR"}],"steps":[{"id":"TOTAL_FINANCE_INCOME","label":{"fr":"","en":"Unearned finance income at the commencement date","es":""},"answer":20850,"tolerance":0,"unit":"EUR"},{"id":"FINANCE_INCOME_Y3","label":{"fr":"","en":"Finance income for the third year","es":""},"answer":3850,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_FINANCE_INCOME","meaning":{"fr":"","en":"Unearned finance income at the commencement date","es":""},"expression":"(3 * a + b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment in arrears","es":""},"value":70000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Unguaranteed residual value","es":""},"value":10850,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Initial net investment","es":""},"value":200000,"unit":"EUR"}],"result":20850,"unit":"EUR"}],"references":["REF.IFRS16.75","REF.IFRS16.76"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000269","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.SUBSEQUENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000269","tested_point":"QST.IFRS16.000269","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"finance-income"},"references":["IFRS 16 §78"],"exercise":{"prompt":{"fr":"","en":"Grantec, a lessor, has decided to dispose of a portfolio of assets subject to finance leases. It is given that, at the reporting date, this portfolio meets the criteria for classification as held for sale under IFRS 5. Under which requirements does Grantec now account for these assets?","es":""},"explanation":{"fr":"","en":"When a lessor classifies an asset subject to a finance lease as held for sale, or includes it in a disposal group so classified, under IFRS 5, it accounts for that asset in accordance with IFRS 5 (IFRS 16, para. 78). Meeting the IFRS 5 classification criteria is a given of the case; the IFRS 5 measurement requirements are not tested.","es":""},"common_error":{"fr":"","en":"Continuing to apply the ongoing IFRS 16 treatment to an asset classified as held for sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under para. 75 and 76 of IFRS 16 without change, finance income continuing to be recognised at a constant rate until the actual disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Once the IFRS 5 criteria are met, IFRS 16 refers to IFRS 5 for these assets.","es":""}},{"id":"B","text":{"fr":"","en":"Under IAS 16, the underlying assets being brought back into property, plant and equipment before the disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"The assets do not become property, plant and equipment again: IFRS 16 refers to IFRS 5 for assets classified as held for sale.","es":""}},{"id":"C","text":{"fr":"","en":"Under IFRS 15, the disposal of the portfolio being a sale of goods to customers.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 15 does not govern a finance lease asset classified as held for sale: IFRS 16 refers to IFRS 5.","es":""}},{"id":"D","text":{"fr":"","en":"Under IFRS 5.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000270","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.MODIFICATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000270","tested_point":"QST.IFRS16.000270","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"finance-modification"},"references":["IFRS 16 §79"],"exercise":{"prompt":{"fr":"","en":"Nordhal, a lessor, leases three laser cutting machines to a manufacturer under a finance lease. During the lease, the parties agree to add a fourth machine; the consideration increases by an amount commensurate with the stand-alone price of this additional machine, adjusted to reflect the circumstances of the contract. How does Nordhal account for this modification?","es":""},"explanation":{"fr":"","en":"The lessor accounts for a modification of a finance lease as a separate lease when two conditions are met: the modification increases the scope of the lease by adding the right to use one or more underlying assets, and the consideration increases by an amount commensurate with the stand-alone price for the increase in scope, adjusted as appropriate to reflect the circumstances of the contract (IFRS 16, para. 79). Both conditions are met here: the fourth machine is a separate lease, classified and accounted for separately; the original lease is unchanged.","es":""},"common_error":{"fr":"","en":"Applying to the lessor the lease liability remeasurement required of the lessee.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It remeasures the existing net investment by discounting the revised payments at a revised rate, as a lessee remeasures its lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor does not apply the lessee's lease liability remeasurement mechanism; a modification that meets both conditions is a separate lease.","es":""}},{"id":"B","text":{"fr":"","en":"It accounts for it as a separate lease.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It treats all four machines as a new operating lease.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing justifies requalifying the three existing machines: a separate lease does not affect the original lease.","es":""}},{"id":"D","text":{"fr":"","en":"It applies IFRS 9 to the existing net investment, since the additional consideration changes the cash flows of the receivable.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 only applies to modifications that are not a separate lease and do not lead to an operating lease classification.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000271","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.MODIFICATIONS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000271","tested_point":"QST.IFRS16.000271","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"finance-modification"},"references":["IFRS 16 §80","IFRS 16 §79"],"exercise":{"prompt":{"fr":"","en":"Estrel, a shipowner and lessor, leases a support vessel under a finance lease. On 1 July 20X3, the parties substantially shorten the lease term, without adding any asset. Estrel's documented analysis concludes that, had this modification been in effect at the inception date, the lease would have been classified as an operating lease. Immediately before the effective date of the modification, the net investment amounts to 180,000; the fair value of the vessel is estimated at 210,000. Which treatment complies with IFRS 16?","es":""},"explanation":{"fr":"","en":"The modification adds no asset: it is not a separate lease (IFRS 16, para. 79). Since the lease would have been classified as an operating lease had the modification been in effect at the inception date, the lessor accounts for it as a new lease from its effective date and measures the underlying asset at the net investment immediately before that date (IFRS 16, para. 80), that is 180,000. The fair value of 210,000 is not used and no gain is recognised. The classification conclusion is a documented judgement given by the case.","es":""},"common_error":{"fr":"","en":"Measuring the asset taken back at fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise the vessel at its fair value of 210,000 and recognise a gain of 30,000, then apply operating lease accounting.","es":""},"correct":false,"feedback":{"fr":"","en":"The underlying asset is measured at the net investment immediately before the effective date (180,000), not at fair value.","es":""}},{"id":"B","text":{"fr":"","en":"Keep the receivable and apply IFRS 9 to the modification, since the lease was originally classified as a finance lease.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 applies only when the modified lease would have remained a finance lease; here it would have been classified as an operating lease.","es":""}},{"id":"C","text":{"fr":"","en":"Account for the modification as a new lease from 1 July 20X3 and recognise the vessel at 180,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Remeasure the net investment by discounting the remaining payments at a revised rate, with the difference in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This remeasurement mechanism is the lessee's; it is not the treatment of a finance lease modification for the lessor.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000272","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_FINANCE.MODIFICATIONS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000272","tested_point":"QST.IFRS16.000272","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"finance-modification"},"references":["IFRS 16 §80","IFRS 16 §79"],"exercise":{"prompt":{"fr":"","en":"Parvel, a lessor, has leased a tram set to a regional operator under a finance lease. Given the lessee's cash difficulties, the parties reschedule the remaining payments, without changing the scope of the lease or adding any asset. Parvel's team concludes that the lease would in any case have been classified as a finance lease had these new terms been in effect at the inception date. The financial controller proposes remeasuring the receivable as a lessee does for its lease liability. Which position do you defend?","es":""},"explanation":{"fr":"","en":"The modification does not add the right to use an underlying asset: it is not a separate lease (IFRS 16, para. 79). The modified lease would have remained a finance lease had it been in effect at the inception date: the lessor therefore applies IFRS 9 (IFRS 16, para. 80). Taking back the underlying asset at the net investment applies only when the lease would have been classified as an operating lease. The classification conclusion is a judgement given by the case; the IFRS 9 computation is not tested.","es":""},"common_error":{"fr":"","en":"Applying to the lessor the lease liability remeasurement required of the lessee.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Adopt the financial controller's proposal: discount the revised payments at a revised rate and adjust the net investment.","es":""},"correct":false,"feedback":{"fr":"","en":"Lease liability remeasurement is a lessee mechanism; for the lessor, this case falls under IFRS 9.","es":""}},{"id":"B","text":{"fr":"","en":"Apply the requirements of IFRS 9 to the modification of the net investment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Account for a new lease from the effective date and bring the tram set back into property, plant and equipment at the amount of the net investment.","es":""},"correct":false,"feedback":{"fr":"","en":"This treatment is reserved for cases where the modified lease would have been classified as an operating lease, which the analysis rules out here.","es":""}},{"id":"D","text":{"fr":"","en":"Account for a separate lease for the rescheduled payments, the original lease being kept unchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"A separate lease requires an added right to use an underlying asset at a stand-alone price: a rescheduling is not one.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000273","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000273","tested_point":"QST.IFRS16.000273","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §81"],"exercise":{"prompt":{"fr":"","en":"True or false? A lessor recognises operating lease payments as income on a straight-line basis, unless another systematic basis better reflects how the benefit from using the underlying asset is consumed.","es":""},"explanation":{"fr":"","en":"The default basis is straight-line; another systematic basis is used only if it better represents how the benefit from using the underlying asset is consumed (IFRS 16, para. 81). The pattern of cash receipts is not in itself a basis of recognition.","es":""},"common_error":{"fr":"","en":"Recognising income as invoices are issued.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000274","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000274","tested_point":"QST.IFRS16.000274","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §81"],"exercise":{"prompt":{"fr":"","en":"True or false? During the rent-free period granted at the beginning of an operating lease, the lessor recognises no lease income, since it collects nothing.","es":""},"explanation":{"fr":"","en":"Operating lease payments are recognised as income on a straight-line basis over the lease term (IFRS 16, para. 81): total lease payments, including the rent-free period, are spread over the whole term, including the rent-free period. During that period, the lessor recognises income and an accrued income asset, which then unwinds.","es":""},"common_error":{"fr":"","en":"Recognising lease payments as they are collected despite a rent-free period.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000275","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000275","tested_point":"QST.IFRS16.000275","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §84","IFRS 16 §82"],"exercise":{"prompt":{"fr":"","en":"Varenne Logistique leases out part of its refrigerated trucks under operating leases and uses identical trucks itself. How does it determine the depreciation of the leased trucks?","es":""},"explanation":{"fr":"","en":"The depreciation policy for depreciable underlying assets subject to operating leases must be consistent with the lessor's normal depreciation policy for similar assets, depreciation being calculated in accordance with IAS 16 and IAS 38 (IFRS 16, para. 84). This depreciation is part of the costs incurred in earning the lease income, recognised as an expense (IFRS 16, para. 82).","es":""},"common_error":{"fr":"","en":"Applying to leased assets a depreciation policy different from that of similar assets without justification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It does not depreciate them: the lessee uses them and bears their wear and tear.","es":""},"correct":false,"feedback":{"fr":"","en":"Under an operating lease, the asset stays in the lessor's statement of financial position and the lessor depreciates it.","es":""}},{"id":"B","text":{"fr":"","en":"It must depreciate them over the lease term only, whatever their useful life.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 requires consistency with the policy for similar assets, not a depreciation period tied to the lease.","es":""}},{"id":"C","text":{"fr":"","en":"On a policy consistent with that of its similar trucks, computed under IAS 16, as an expense of the period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It deducts depreciation from lease income, with no separate expense in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation is an expense; it is not offset against lease income.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000276","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000704","tested_point":"VG.IFRS16.000704","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §81"],"exercise":{"prompt":{"fr":"","en":"The property company Belcour leases out an office floor under an operating lease with a lease term of {lease_term} years from 1 January 20X1. It grants a rent-free period of {rent_free_period} year; thereafter, the lessee pays {annual_rent} a year, at the beginning of each year. Belcour applies the straight-line basis. Compute the annual lease income and the accrued income asset balance at 31 December 20X2.","es":""},"explanation":{"fr":"","en":"Operating lease payments are recognised as income on a straight-line basis (IFRS 16, para. 81). Total payments: 3 × 60,000 = 180,000, spread over the four years: 180,000 / 4 = 45,000 a year. Accrued income at 31 December 20X2: income recognised 2 × 45,000 = 90,000 less payments collected 60,000 = 30,000.","es":""},"common_error":{"fr":"","en":"Recognising no income in 20X1.","es":""},"format":"CALCULATION","placeholders":[{"id":"lease_term","value":"4","unit":"YEARS"},{"id":"rent_free_period","value":"1","unit":"YEARS"},{"id":"annual_rent","value":"60000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Lease term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Rent-free period","es":""},"value":"1","unit":"YEARS"},{"label":{"fr":"","en":"Annual payment after the rent-free period (payable in advance)","es":""},"value":"60000","unit":"EUR"}],"steps":[{"id":"ANNUAL_LEASE_INCOME","label":{"fr":"","en":"Annual lease income","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"ACCRUED_INCOME_END_Y2","label":{"fr":"","en":"Accrued income at 31 December 20X2","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_LEASE_INCOME","meaning":{"fr":"","en":"Annual lease income","es":""},"expression":"(3 * a) / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment after the rent-free period (payable in advance)","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease term","es":""},"value":4,"unit":"YEARS"}],"result":45000,"unit":"EUR"}],"rationale":{"fr":"","en":"Operating lease payments are recognised as income on a straight-line basis (IFRS 16, para. 81).","es":""},"references":["REF.IFRS16.81"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000277","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000704","tested_point":"VG.IFRS16.000704","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §81"],"exercise":{"prompt":{"fr":"","en":"A logistics warehouse is leased out by Ombrelle under a five-year operating lease. The lease payments, payable on 1 January of each year, are stepped: {rent_y1} in the first year, {rent_y2} in the second, {rent_y3} in the third, {rent_y4} in the fourth and {rent_y5} in the fifth. No other systematic basis is more representative than the straight-line basis. Determine Ombrelle's annual lease income and the accrued income asset at the end of the second year.","es":""},"explanation":{"fr":"","en":"Straight-line income (IFRS 16, para. 81): (100,000 + 110,000 + 120,000 + 130,000 + 140,000) / 5 = 600,000 / 5 = 120,000 a year. Accrued income at the end of the second year: (120,000 − 100,000) + (120,000 − 110,000) = 30,000. It unwinds from the fourth year, when payments collected exceed the annual income.","es":""},"common_error":{"fr":"","en":"Recognising each stepped payment as income of the year in which it is paid.","es":""},"format":"CALCULATION","placeholders":[{"id":"rent_y1","value":"100000","unit":"EUR"},{"id":"rent_y2","value":"110000","unit":"EUR"},{"id":"rent_y3","value":"120000","unit":"EUR"},{"id":"rent_y4","value":"130000","unit":"EUR"},{"id":"rent_y5","value":"140000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Payment for the first year","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Payment for the second year","es":""},"value":"110000","unit":"EUR"},{"label":{"fr":"","en":"Payment for the third year","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Payment for the fourth year","es":""},"value":"130000","unit":"EUR"},{"label":{"fr":"","en":"Payment for the fifth year","es":""},"value":"140000","unit":"EUR"}],"steps":[{"id":"ANNUAL_LEASE_INCOME","label":{"fr":"","en":"Annual lease income","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"ACCRUED_INCOME_END_Y2","label":{"fr":"","en":"Accrued income at the end of the second year","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ANNUAL_LEASE_INCOME","meaning":{"fr":"","en":"Annual lease income","es":""},"expression":"(a + b + c + d + e) / 5","variables":[{"symbol":"a","meaning":{"fr":"","en":"Payment for the first year","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Payment for the second year","es":""},"value":110000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Payment for the third year","es":""},"value":120000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Payment for the fourth year","es":""},"value":130000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Payment for the fifth year","es":""},"value":140000,"unit":"EUR"}],"result":120000,"unit":"EUR"},{"step":"ACCRUED_INCOME_END_Y2","meaning":{"fr":"","en":"Accrued income at the end of the second year","es":""},"expression":"(a - b) + (a - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Payment for the third year","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Payment for the first year","es":""},"value":100000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Payment for the second year","es":""},"value":110000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"Straight-line income (IFRS 16, para. 81): (100,000 + 110,000 + 120,000 + 130,000 + 140,000) / 5 = 600,000 / 5 = 120,000 a year.","es":""},"references":["REF.IFRS16.81"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000280","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000706","tested_point":"VG.IFRS16.000706","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §83"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Lisandre leases out business premises under an operating lease with a lease term of {lease_term} years, at a constant payment of {annual_rent} a year payable in advance. It incurs initial direct costs of {initial_direct_costs} to obtain it. Lease income is recognised on a straight-line basis. Compute the 20X1 expense for the initial direct costs and the amount of these costs still included in the carrying amount of the premises at 31 December 20X1.","es":""},"explanation":{"fr":"","en":"Initial direct costs of an operating lease are added to the carrying amount of the underlying asset and recognised as an expense over the lease term on the same basis as the lease income (IFRS 16, para. 83). Straight-line basis: 12,000 / 4 = 3,000 a year; balance at 31 December 20X1: 12,000 − 3,000 = 9,000.","es":""},"common_error":{"fr":"","en":"Expensing the 12,000 in full in 20X1.","es":""},"format":"CALCULATION","placeholders":[{"id":"initial_direct_costs","value":"12000","unit":"EUR"},{"id":"lease_term","value":"4","unit":"YEARS"},{"id":"annual_rent","value":"50000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Constant annual payment","es":""},"value":"50000","unit":"EUR"}],"steps":[{"id":"IDC_EXPENSE_Y1","label":{"fr":"","en":"20X1 expense for initial direct costs","es":""},"answer":3000,"tolerance":0,"unit":"EUR"},{"id":"IDC_REMAINING_END_Y1","label":{"fr":"","en":"Initial direct costs remaining in the carrying amount at 31 December 20X1","es":""},"answer":9000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IDC_EXPENSE_Y1","meaning":{"fr":"","en":"20X1 expense for initial direct costs","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":12000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Lease term","es":""},"value":4,"unit":"YEARS"}],"result":3000,"unit":"EUR"},{"step":"IDC_REMAINING_END_Y1","meaning":{"fr":"","en":"Initial direct costs remaining in the carrying amount at 31 December 20X1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":12000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"20X1 expense for initial direct costs","es":""},"value":3000,"unit":"EUR"}],"result":9000,"unit":"EUR"}],"rationale":{"fr":"","en":"Initial direct costs of an operating lease are added to the carrying amount of the underlying asset and recognised as an expense over the lease term on the same basis as the lease income (IFRS 16, para. 83).","es":""},"references":["REF.IFRS16.83"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000281","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000706","tested_point":"VG.IFRS16.000706","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":210,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §83","IFRS 16 §84","IFRS 16 §82","IFRS 16 §81"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, the Asteral group leases out under an operating lease an office building acquired for {building_cost}, depreciated on a straight-line basis over {useful_life} years with no residual value, in line with its policy for similar buildings. The lease term is {lease_term} years, at a constant payment of {annual_rent} a year, payable in advance. Asteral incurred initial direct costs of {initial_direct_costs}. Compute total 20X1 expenses relating to this lease (depreciation of the building and initial direct costs) and the net result of this lease in 20X1.","es":""},"explanation":{"fr":"","en":"Costs incurred in earning the lease income, including depreciation, are expenses (IFRS 16, para. 82). Depreciation under the policy for similar assets (IFRS 16, para. 84): 900,000 / 30 = 30,000. Initial direct costs added to the carrying amount and spread over the lease term on the same basis as income (IFRS 16, para. 83): 18,000 / 6 = 3,000. Expenses: 30,000 + 3,000 = 33,000. Straight-line income (IFRS 16, para. 81): 120,000; net result: 120,000 − 33,000 = 87,000.","es":""},"common_error":{"fr":"","en":"Spreading the initial direct costs over the useful life of the building.","es":""},"format":"CALCULATION","placeholders":[{"id":"building_cost","value":"900000","unit":"EUR"},{"id":"useful_life","value":"30","unit":"YEARS"},{"id":"initial_direct_costs","value":"18000","unit":"EUR"},{"id":"lease_term","value":"6","unit":"YEARS"},{"id":"annual_rent","value":"120000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cost of the building","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Useful life of the building","es":""},"value":"30","unit":"YEARS"},{"label":{"fr":"","en":"Initial direct costs","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"6","unit":"YEARS"},{"label":{"fr":"","en":"Constant annual payment","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"TOTAL_EXPENSES_Y1","label":{"fr":"","en":"Total expenses 20X1","es":""},"answer":33000,"tolerance":0,"unit":"EUR"},{"id":"NET_LEASE_RESULT_Y1","label":{"fr":"","en":"Net result of the lease in 20X1","es":""},"answer":87000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_EXPENSES_Y1","meaning":{"fr":"","en":"Total expenses 20X1","es":""},"expression":"(a / b) + (c / d)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the building","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Useful life of the building","es":""},"value":30,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"Initial direct costs","es":""},"value":18000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Lease term","es":""},"value":6,"unit":"YEARS"}],"result":33000,"unit":"EUR"},{"step":"NET_LEASE_RESULT_Y1","meaning":{"fr":"","en":"Net result of the lease in 20X1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Constant annual payment","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total expenses 20X1","es":""},"value":33000,"unit":"EUR"}],"result":87000,"unit":"EUR"}],"rationale":{"fr":"","en":"Costs incurred in earning the lease income, including depreciation, are expenses (IFRS 16, para. 82).","es":""},"references":["REF.IFRS16.83","REF.IFRS16.84","REF.IFRS16.82","REF.IFRS16.81"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000282","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000282","tested_point":"QST.IFRS16.000282","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §82","IFRS 16 §83","IFRS 16 §85"],"exercise":{"prompt":{"fr":"","en":"For an asset subject to an operating lease, which statements about the lessor's accounting are correct? (several answers)","es":""},"explanation":{"fr":"","en":"Costs incurred in earning the lease income, including depreciation, are expenses (IFRS 16, para. 82). Initial direct costs are added to the carrying amount of the underlying asset and spread over the lease term on the same basis as income (IFRS 16, para. 83). Impairment of the underlying asset falls under IAS 36 (IFRS 16, para. 85).","es":""},"common_error":{"fr":"","en":"Treating the asset subject to an operating lease as a receivable.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Initial direct costs are recognised as an expense at the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"Initial direct costs of an operating lease are not expensed immediately: they are added to the asset and spread.","es":""}},{"id":"B","text":{"fr":"","en":"Initial direct costs are added to the carrying amount of the underlying asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Costs incurred in earning the lease income, including depreciation, are recognised as an expense.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Any impairment of the underlying asset is assessed under IFRS 9, since the asset generates lease payments.","es":""},"correct":false,"feedback":{"fr":"","en":"The underlying asset is not a financial asset: its impairment falls under IAS 36.","es":""}},{"id":"E","text":{"fr":"","en":"IAS 36 is used to determine whether the underlying asset is impaired and to account for any impairment loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000283","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000283","tested_point":"QST.IFRS16.000283","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §86","IFRS 16 §84","IFRS 16 §81"],"exercise":{"prompt":{"fr":"","en":"The manufacturer Kelso produces industrial compressors, which it sells or leases. It provides a compressor, with a production cost of 60,000 and a normal selling price of 80,000, to a customer under a three-year lease classified (given in the case) as an operating lease. What treatment does Kelso apply at the commencement date?","es":""},"explanation":{"fr":"","en":"An operating lease is not equivalent to a sale: a manufacturer or dealer lessor recognises no selling profit on entering into it (IFRS 16, para. 86). The compressor remains a depreciable asset of Kelso, depreciated on a policy consistent with that for similar assets (IFRS 16, para. 84), and the lease payments are recognised as income on a straight-line basis or another more representative systematic basis (IFRS 16, para. 81).","es":""},"common_error":{"fr":"","en":"Recognising selling profit on entering into an operating lease.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises revenue of 80,000 and cost of sales of 60,000, as for an outright sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Outright sale accounting does not apply: an operating lease is not equivalent to a sale.","es":""}},{"id":"B","text":{"fr":"","en":"It immediately recognises the 20,000 margin, then spreads the lease payments over three years.","es":""},"correct":false,"feedback":{"fr":"","en":"No selling profit is recognised on entering into an operating lease, even by a manufacturer.","es":""}},{"id":"C","text":{"fr":"","en":"It recognises no selling profit; the compressor stays in its assets, depreciated under its policy for similar assets, and lease payments are spread.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It recognises revenue equal to the present value of the lease payments and cost of sales equal to the cost of the compressor.","es":""},"correct":false,"feedback":{"fr":"","en":"This pattern amounts to treating the contract as a sale; it is excluded for an operating lease, which is not equivalent to a sale.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000284","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000284","tested_point":"QST.IFRS16.000284","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"income-rule"},"references":["IFRS 16 §85"],"exercise":{"prompt":{"fr":"","en":"Monteval leases out a cinema complex under an operating lease. Attendance in the sector collapses and the building may have lost value. Under which standard does Monteval determine whether the building itself is impaired and account for any impairment loss?","es":""},"explanation":{"fr":"","en":"The lessor applies IAS 36 to determine whether an underlying asset subject to an operating lease is impaired and to account for any impairment loss identified (IFRS 16, para. 85). The building remains a non-financial asset of the lessor; the question of lease receivables is separate and not dealt with here.","es":""},"common_error":{"fr":"","en":"Confusing impairment of the underlying asset with that of lease receivables.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 36.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IFRS 9, since the building generates contractual lease payments.","es":""},"correct":false,"feedback":{"fr":"","en":"The building is not a financial asset; its impairment does not fall under IFRS 9.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 37, the fall in attendance being a probable obligation.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 37 deals with provisions, not with the impairment of an underlying asset.","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 16 only, by reducing the straight-line lease income of the remaining years.","es":""},"correct":false,"feedback":{"fr":"","en":"Impairment of the asset does not translate into a reduction of straight-line income: IFRS 16 refers to IAS 36.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000285","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.MODIFICATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000285","tested_point":"QST.IFRS16.000285","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"operating-modification"},"references":["IFRS 16 §87"],"exercise":{"prompt":{"fr":"","en":"How does a lessor account for a modification to an operating lease?","es":""},"explanation":{"fr":"","en":"A modification to an operating lease is accounted for by the lessor as a new lease from the effective date of the modification; prepaid or accrued lease payments relating to the original lease are considered part of the lease payments for the new lease (IFRS 16, para. 87). The treatment is therefore prospective.","es":""},"common_error":{"fr":"","en":"Ignoring prepaid or accrued lease payments of the original lease in the new spreading.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recomputes straight-line income from the start of the lease and recognises the difference immediately in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment is prospective, from the effective date: there is no catch-up on past periods.","es":""}},{"id":"B","text":{"fr":"","en":"It spreads the new payments over the remaining term without taking into account prepaid or accrued payments of the original lease.","es":""},"correct":false,"feedback":{"fr":"","en":"Prepaid or accrued balances of the original lease must be included in the payments for the new lease.","es":""}},{"id":"C","text":{"fr":"","en":"It remeasures the underlying asset at fair value at the effective date of the modification.","es":""},"correct":false,"feedback":{"fr":"","en":"The modification does not lead to remeasuring the underlying asset at fair value.","es":""}},{"id":"D","text":{"fr":"","en":"As a new lease from the effective date, including the prepaid or accrued lease payments of the original lease.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000286","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.MODIFICATIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000707","tested_point":"VG.IFRS16.000707","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"operating-modification"},"references":["IFRS 16 §87"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Fontaury leased out a hangar under an operating lease for {original_term} years: the first year is free, then the lessee pays {annual_rent} at the beginning of each of the following four years. Income is recognised on a straight-line basis. On 1 January 20X3, the parties modify the lease: from that date, the payment is {new_annual_rent} a year, payable in advance, for a remaining term extended to {new_remaining_term} years. Compute the accrued income balance at 31 December 20X2 and the annual lease income to be recognised from 1 January 20X3.","es":""},"explanation":{"fr":"","en":"Original lease: 200,000 / 5 = 40,000 a year; at 31 December 20X2, income 80,000 − collections 50,000 = 30,000 of accrued income. The modification is a new lease from 1 January 20X3, the accrued payments of the original lease being part of its lease payments (IFRS 16, para. 87): the 30,000 accrued income is already recognised and will be recovered through the new payments. Income to spread: 5 × 45,000 − 30,000 = 195,000, i.e. 195,000 / 5 = 39,000 a year.","es":""},"common_error":{"fr":"","en":"Ignoring accrued income and recognising 45,000 a year.","es":""},"format":"CALCULATION","placeholders":[{"id":"original_term","value":"5","unit":"YEARS"},{"id":"annual_rent","value":"50000","unit":"EUR"},{"id":"new_annual_rent","value":"45000","unit":"EUR"},{"id":"new_remaining_term","value":"5","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Term of the original lease","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Original annual payment after the rent-free period","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"New annual payment","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Remaining term after the modification","es":""},"value":"5","unit":"YEARS"}],"steps":[{"id":"ACCRUED_BALANCE","label":{"fr":"","en":"Accrued income at 31 December 20X2","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"NEW_ANNUAL_INCOME","label":{"fr":"","en":"Annual lease income from 20X3","es":""},"answer":39000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000287","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.MODIFICATIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000707","tested_point":"VG.IFRS16.000707","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":270,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"operating-modification"},"references":["IFRS 16 §87"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X1, Altimar leases a fleet of electric bicycles to a local authority under an operating lease for {original_term} years. The lessee paid a non-refundable upfront fee of {upfront_payment} on signature, then pays {annual_rent} at the beginning of each year. Altimar recognises income on a straight-line basis. On 1 January 20X3, the payment for the four remaining years is reduced to {new_annual_rent}, payable in advance, with no change in term. Compute the balance of lease payments received in advance at 31 December 20X2 and the annual lease income from 1 January 20X3.","es":""},"explanation":{"fr":"","en":"Original lease: (24,000 + 6 × 30,000) / 6 = 204,000 / 6 = 34,000 a year. At 31 December 20X2: collections 24,000 + 2 × 30,000 = 84,000, income 2 × 34,000 = 68,000, i.e. 16,000 received in advance. The modification is a new lease from 1 January 20X3, the prepaid payments of the original lease being part of its lease payments (IFRS 16, para. 87): (16,000 + 4 × 25,000) / 4 = 116,000 / 4 = 29,000 a year.","es":""},"common_error":{"fr":"","en":"Recognising 25,000 a year by ignoring the prepaid balance.","es":""},"format":"CALCULATION","placeholders":[{"id":"upfront_payment","value":"24000","unit":"EUR"},{"id":"annual_rent","value":"30000","unit":"EUR"},{"id":"original_term","value":"6","unit":"YEARS"},{"id":"new_annual_rent","value":"25000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Upfront fee paid at the start of the lease","es":""},"value":"24000","unit":"EUR"},{"label":{"fr":"","en":"Original annual payment (payable in advance)","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Lease term","es":""},"value":"6","unit":"YEARS"},{"label":{"fr":"","en":"New annual payment","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"PREPAID_BALANCE","label":{"fr":"","en":"Payments received in advance at 31 December 20X2","es":""},"answer":16000,"tolerance":0,"unit":"EUR"},{"id":"NEW_ANNUAL_INCOME","label":{"fr":"","en":"Annual lease income from 20X3","es":""},"answer":29000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NEW_ANNUAL_INCOME","meaning":{"fr":"","en":"Annual lease income from 20X3","es":""},"expression":"(a + 4 * b) / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Payments received in advance at 31 December 20X2","es":""},"value":16000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"New annual payment","es":""},"value":25000,"unit":"EUR"}],"result":29000,"unit":"EUR","rationale":{"fr":"","en":"The modification is a new lease from 1 January 20X3, the prepaid payments of the original lease being part of its lease payments (IFRS 16, para. 87): (16,000 + 4 × 25,000) / 4 = 116,000 / 4 = 29,000 a year.","es":""}}],"references":["REF.IFRS16.87"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000288","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.MODIFICATIONS"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000707","tested_point":"VG.IFRS16.000707","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"operating-modification"},"references":["IFRS 16 §87"],"exercise":{"prompt":{"fr":"","en":"Dunemer has leased out a storage terminal under an operating lease since 1 January 20X1, for four years, with stepped payments due each 1 January: {rent_y1}, {rent_y2}, {rent_y3} then {rent_y4}. On 1 January 20X3, at the lessee's request, the lease is extended by two years and the payment becomes fixed at {new_annual_rent} a year, payable in advance, for the four remaining years. Determine accrued income at 31 December 20X2 and the annual lease income of the modified lease.","es":""},"explanation":{"fr":"","en":"Original lease: (60,000 + 70,000 + 80,000 + 90,000) / 4 = 75,000 a year; at 31 December 20X2, income 150,000 − collections 130,000 = 20,000 of accrued income. New lease from 1 January 20X3 including the accrued payments of the original lease (IFRS 16, para. 87): (4 × 65,000 − 20,000) / 4 = 240,000 / 4 = 60,000 a year.","es":""},"common_error":{"fr":"","en":"Using 65,000 a year by ignoring accrued income.","es":""},"format":"CALCULATION","placeholders":[{"id":"rent_y1","value":"60000","unit":"EUR"},{"id":"rent_y2","value":"70000","unit":"EUR"},{"id":"rent_y3","value":"80000","unit":"EUR"},{"id":"rent_y4","value":"90000","unit":"EUR"},{"id":"new_annual_rent","value":"65000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Payment 20X1","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Payment 20X2","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Original payment 20X3","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Original payment 20X4","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Fixed annual payment after the modification","es":""},"value":"65000","unit":"EUR"}],"steps":[{"id":"ACCRUED_BALANCE","label":{"fr":"","en":"Accrued income at 31 December 20X2","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"NEW_ANNUAL_INCOME","label":{"fr":"","en":"Annual lease income of the modified lease","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NEW_ANNUAL_INCOME","meaning":{"fr":"","en":"Annual lease income of the modified lease","es":""},"expression":"(4 * a - b) / 4","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fixed annual payment after the modification","es":""},"value":65000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accrued income at 31 December 20X2","es":""},"value":20000,"unit":"EUR"}],"result":60000,"unit":"EUR","rationale":{"fr":"","en":"New lease from 1 January 20X3 including the accrued payments of the original lease (IFRS 16, para. 87): (4 × 65,000 − 20,000) / 4 = 240,000 / 4 = 60,000 a year.","es":""}}],"references":["REF.IFRS16.87"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000289","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.MODIFICATIONS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000289","tested_point":"QST.IFRS16.000289","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"operating-modification"},"references":["IFRS 16 §87"],"exercise":{"prompt":{"fr":"","en":"The lessor Sorgues has leased out a warehouse under an operating lease. At the beginning of the fourth year, it agrees to a lower payment in exchange for an extension of the lease. At that date, Sorgues' statement of financial position shows accrued income arising from straight-lining. The finance director hesitates between several treatments. Which one complies with IFRS 16?","es":""},"explanation":{"fr":"","en":"A modification to an operating lease is a new lease from its effective date, prepaid or accrued lease payments of the original lease being included in the payments for the new lease (IFRS 16, para. 87). The treatment is prospective: the existing accrued income is absorbed by spreading the new payments over the new term, with no catch-up and no reversal through profit or loss.","es":""},"common_error":{"fr":"","en":"Ignoring prepaid or accrued lease payments of the original lease in the new spreading.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recompute straight-line income from the start of the lease over the total modified term, and recognise the cumulative difference immediately in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment is prospective: there is no cumulative catch-up on periods before the effective date.","es":""}},{"id":"B","text":{"fr":"","en":"Treat the modification as a new lease from its effective date and spread the remaining payments over the new term, taking the accrued income into account.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Keep the original straight-line income until the original end date, then recognise the payments of the extension.","es":""},"correct":false,"feedback":{"fr":"","en":"The modification cannot be ignored until the original end date: a new lease starts at the effective date.","es":""}},{"id":"D","text":{"fr":"","en":"Reverse the accrued income through profit or loss at the modification date, then spread only the new payments over the new term.","es":""},"correct":false,"feedback":{"fr":"","en":"Accrued income is not reversed through profit or loss; it is part of the payments for the new lease.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000290","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_OPERATING.MODIFICATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000290","tested_point":"QST.IFRS16.000290","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000015","section_id":"operating-modification"},"references":["IFRS 16 §87"],"exercise":{"prompt":{"fr":"","en":"An operating lease of Valcresse is modified with effect from 1 January 20X4. At that date, accrued income from straight-lining the original lease amounts to 12,000. The modified lease provides for four annual payments of 33,000, payable in advance. A team member proposes recognising 33,000 of income a year. What annual lease income should be recognised?","es":""},"explanation":{"fr":"","en":"The modification is a new lease from 1 January 20X4 and the accrued payments of the original lease are part of its lease payments (IFRS 16, para. 87). The 12,000 accrued income has already been recognised and will be recovered through the new payments: income to spread 4 × 33,000 − 12,000 = 120,000, i.e. 30,000 a year.","es":""},"common_error":{"fr":"","en":"Ignoring prepaid or accrued lease payments of the original lease in the new spreading.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"33,000, as the new payments are constant.","es":""},"correct":false,"feedback":{"fr":"","en":"This proposal ignores the accrued income of the original lease, which must be included in the payments for the new lease.","es":""}},{"id":"B","text":{"fr":"","en":"36,000, i.e. (132,000 + 12,000) / 4.","es":""},"correct":false,"feedback":{"fr":"","en":"Accrued income has already been recognised: it is deducted from the payments to spread, not added.","es":""}},{"id":"C","text":{"fr":"","en":"30,000, i.e. (132,000 − 12,000) / 4.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"33,000 a year, after immediately writing off the 12,000 accrued income as an expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Accrued income is not written off as an expense; it is included in the payments for the new lease.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000291","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000291","tested_point":"QST.IFRS16.000291","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"presentation"},"references":["IFRS 16 §88"],"exercise":{"prompt":{"fr":"","en":"True or false? The lessor presents underlying assets subject to operating leases in its statement of financial position according to the nature of those assets.","es":""},"explanation":{"fr":"","en":"Underlying assets subject to operating leases are presented in the lessor's statement of financial position according to their nature (IFRS 16, para. 88): a building is still presented with buildings, a machine with machinery.","es":""},"common_error":{"fr":"","en":"Presenting an asset subject to an operating lease as a receivable.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000292","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000292","tested_point":"QST.IFRS16.000292","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"presentation"},"references":["IFRS 16 §88"],"exercise":{"prompt":{"fr":"","en":"True or false? Mirabeau, which leases out an office building under an operating lease, presents it in its statement of financial position as a receivable, at the present value of the lease payments still to be received.","es":""},"explanation":{"fr":"","en":"Under an operating lease, the underlying asset is presented in the lessor's statement of financial position according to its nature (IFRS 16, para. 88). The building is therefore still presented among assets of the same nature; it is not replaced by a receivable equal to the present value of the lease payments.","es":""},"common_error":{"fr":"","en":"Presenting an asset subject to an operating lease as a receivable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000293","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_PRESENTATION.STATEMENTS","IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000293","tested_point":"QST.IFRS16.000293","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §67","IFRS 16 §88"],"exercise":{"prompt":{"fr":"","en":"True or false? At the commencement date of a finance lease, the lessor presents assets held under that lease as a receivable at an amount equal to its net investment in the lease.","es":""},"explanation":{"fr":"","en":"For a finance lease, the lessor recognises assets held under the lease at the commencement date and presents them as a receivable equal to the net investment in the lease (IFRS 16, para. 67). Presentation according to the nature of the asset only concerns assets subject to operating leases (IFRS 16, para. 88).","es":""},"common_error":{"fr":"","en":"Applying presentation by nature to a finance lease.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000294","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_PRESENTATION.STATEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000294","tested_point":"QST.IFRS16.000294","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"presentation"},"references":["IFRS 16 §88"],"exercise":{"prompt":{"fr":"","en":"Rouvray leases a fleet of mini-excavators, which it continues to own, to construction companies under operating leases. How does it present these machines in its statement of financial position?","es":""},"explanation":{"fr":"","en":"The lessor presents underlying assets subject to operating leases according to their nature (IFRS 16, para. 88). The mini-excavators are therefore still presented with Rouvray's construction equipment.","es":""},"common_error":{"fr":"","en":"Presenting an asset subject to an operating lease as a receivable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a lease receivable, at the present value of the lease payments receivable over the remaining term.","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation as a receivable concerns finance leases; under an operating lease, the asset is presented according to its nature.","es":""}},{"id":"B","text":{"fr":"","en":"Among its construction equipment, according to their nature.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As inventories, since they are made available to customers.","es":""},"correct":false,"feedback":{"fr":"","en":"Making the machines available under an operating lease does not change their nature.","es":""}},{"id":"D","text":{"fr":"","en":"They no longer appear in its statement of financial position while the lessees control their use, and are only mentioned in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"Under an operating lease, the underlying asset stays in the lessor's statement of financial position and is presented according to its nature.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000295","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_PRESENTATION.STATEMENTS","IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000295","tested_point":"QST.IFRS16.000295","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §88","IFRS 16 §67"],"exercise":{"prompt":{"fr":"","en":"Dorlane, a lessor, leases a harbour crane under an operating lease and several straddle carriers under finance leases. Which presentation in Dorlane's statement of financial position is correct?","es":""},"explanation":{"fr":"","en":"Assets subject to operating leases are presented according to their nature (IFRS 16, para. 88): the crane remains among harbour equipment. For a finance lease, assets held under the lease are presented as a receivable equal to the net investment in the lease (IFRS 16, para. 67).","es":""},"common_error":{"fr":"","en":"Presenting an asset subject to an operating lease as a receivable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The crane and the carriers are all presented as a receivable equal to the present value of the lease payments.","es":""},"correct":false,"feedback":{"fr":"","en":"The crane, under an operating lease, is not a receivable: it is presented according to its nature.","es":""}},{"id":"B","text":{"fr":"","en":"The crane and the carriers all remain presented among harbour equipment, according to their nature.","es":""},"correct":false,"feedback":{"fr":"","en":"The carriers, under finance leases, are presented as a receivable equal to the net investment.","es":""}},{"id":"C","text":{"fr":"","en":"The crane is presented as a receivable; the carriers remain presented among harbour equipment.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: the crane (operating lease) stays according to its nature, the carriers (finance leases) become a receivable.","es":""}},{"id":"D","text":{"fr":"","en":"The crane remains presented among harbour equipment according to its nature; the carriers are replaced by a receivable equal to the net investment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000296","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_PRESENTATION.STATEMENTS","IFRS16.LESSOR_FINANCE.INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000296","tested_point":"QST.IFRS16.000296","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000014","section_id":"net-investment"},"references":["IFRS 16 §67","IFRS 16 §88"],"exercise":{"prompt":{"fr":"","en":"True or false? The lessor under a finance lease continues to present the underlying asset within its property, plant and equipment and adds a receivable for the lease payments receivable.","es":""},"explanation":{"fr":"","en":"Under a finance lease, assets held under the lease are presented as a receivable equal to the net investment in the lease (IFRS 16, para. 67): the underlying asset is not kept within property, plant and equipment in addition to the receivable. Presentation according to nature applies to assets subject to operating leases (IFRS 16, para. 88).","es":""},"common_error":{"fr":"","en":"Presenting both the underlying asset and the receivable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000297","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000297","tested_point":"QST.IFRS16.000297","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §90"],"exercise":{"prompt":{"fr":"","en":"For its finance leases, which amounts for the period must a lessor disclose under para. 90 of IFRS 16? (several answers)","es":""},"explanation":{"fr":"","en":"For finance leases, the lessor discloses for the period the selling profit or loss, finance income on the net investment, and income relating to variable lease payments not included in the measurement of the net investment (IFRS 16, para. 90). The lessees' incremental borrowing rate and the fair value of each underlying asset are not among these disclosures.","es":""},"common_error":{"fr":"","en":"Forgetting income relating to variable payments excluded from the net investment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The incremental borrowing rate of each of its lessees.","es":""},"correct":false,"feedback":{"fr":"","en":"The incremental borrowing rate is a lessee input; it is not among the para. 90 disclosures.","es":""}},{"id":"B","text":{"fr":"","en":"Selling profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Finance income on the net investment in the lease.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The fair value at the reporting date of each leased underlying asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value of each underlying asset is not one of the amounts required by para. 90.","es":""}},{"id":"E","text":{"fr":"","en":"Income relating to variable lease payments not included in the measurement of the net investment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000298","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000298","tested_point":"QST.IFRS16.000298","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §90","IFRS 16 §97","IFRS 16 §95"],"exercise":{"prompt":{"fr":"","en":"Clairval, a lifting equipment rental company, only enters into operating leases of cranes accounted for under IAS 16. Which disclosures must it provide? (several answers)","es":""},"explanation":{"fr":"","en":"For operating leases, the lessor discloses lease income, separately disclosing income relating to variable lease payments that do not depend on an index or a rate (IFRS 16, para. 90). It presents a maturity analysis of undiscounted lease payments to be received, annually for at least the first five years then in total (IFRS 16, para. 97). For property, plant and equipment subject to operating leases, it applies the IAS 16 disclosures, disaggregating each class between leased and non-leased assets (IFRS 16, para. 95). The reconciliation to the net investment only concerns finance leases.","es":""},"common_error":{"fr":"","en":"Applying to operating leases the reconciliation required for finance leases.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Lease income for the period, separately disclosing income relating to variable lease payments that do not depend on an index or a rate.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A maturity analysis of undiscounted lease payments to be received, on an annual basis for a minimum of each of the first five years, then a total for the remaining years.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A reconciliation of the undiscounted lease payments receivable to the net investment in the leases.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no net investment under an operating lease: this reconciliation concerns finance leases.","es":""}},{"id":"D","text":{"fr":"","en":"A maturity analysis of lease payments discounted at the interest rate implicit in each lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The maturity analysis covers undiscounted amounts.","es":""}},{"id":"E","text":{"fr":"","en":"The IAS 16 disclosures, disaggregating each class between assets subject to operating leases and assets not leased.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000299","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000299","tested_point":"QST.IFRS16.000299","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §91","IFRS 16 §90"],"exercise":{"prompt":{"fr":"","en":"The head of consolidation at Bastidane is preparing the note on lease income for the period (selling profit, finance income, lease income). She wonders in which format to present this information. What does IFRS 16 require?","es":""},"explanation":{"fr":"","en":"The para. 90 disclosures (selling profit, finance income, variable income, lease income) are provided in a tabular format, unless another format is more appropriate (IFRS 16, para. 91). Choosing another format is a matter of the entity's judgement.","es":""},"common_error":{"fr":"","en":"Treating the tabular format as mandatory with no exception.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Narrative text only, tables being reserved for the primary statements.","es":""},"correct":false,"feedback":{"fr":"","en":"On the contrary, the standard favours a table for this information.","es":""}},{"id":"B","text":{"fr":"","en":"A tabular format, unless another format is more appropriate.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Presentation at the foot of the statement of profit or loss, with no information in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"This information belongs in the notes; the standard sets its format, not a move to the statement of profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"A mandatory table in all cases, with no possibility of another format even if more appropriate.","es":""},"correct":false,"feedback":{"fr":"","en":"The table is not absolute: another format may be used if it is more appropriate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000300","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000300","tested_point":"QST.IFRS16.000300","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §94"],"exercise":{"prompt":{"fr":"","en":"For its note on finance leases, Ardenne Crédit has the following data at the reporting date: undiscounted lease payments to be received 500,000; unearned finance income relating to those payments 80,000; discounted unguaranteed residual value 30,000. What net investment amount must the reconciliation show?","es":""},"explanation":{"fr":"","en":"The lessor reconciles the undiscounted lease payments to the net investment, identifying the unearned finance income and the discounted unguaranteed residual value (IFRS 16, para. 94). Undiscounted payments 500,000 − unearned finance income 80,000 = 420,000; + discounted unguaranteed residual value 30,000 = net investment 450,000.","es":""},"common_error":{"fr":"","en":"Omitting the reconciliation between undiscounted payments and the net investment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"610,000, i.e. 500,000 + 80,000 + 30,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Unearned finance income is deducted from the undiscounted payments; it is not added.","es":""}},{"id":"B","text":{"fr":"","en":"420,000, i.e. 500,000 − 80,000.","es":""},"correct":false,"feedback":{"fr":"","en":"This amount omits the discounted unguaranteed residual value, which is part of the net investment.","es":""}},{"id":"C","text":{"fr":"","en":"450,000, i.e. 500,000 − 80,000 + 30,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"500,000, since no reconciliation between undiscounted payments and the net investment is required.","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation between undiscounted payments and the net investment is expressly required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000301","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000301","tested_point":"QST.IFRS16.000301","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §94"],"exercise":{"prompt":{"fr":"","en":"Ligeria's finance leases generate payments to be received until 20X9, that is over eight years after the reporting date. Which maturity analysis of these payments meets the minimum required by IFRS 16?","es":""},"explanation":{"fr":"","en":"The lessor presents a maturity analysis of the lease payments receivable, undiscounted, on an annual basis for a minimum of each of the first five years, then a total for the remaining years; it then reconciles these payments to the net investment (IFRS 16, para. 94). Grouping years two to five does not meet this minimum.","es":""},"common_error":{"fr":"","en":"Using bands that group several of the first five years.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A single total of the payments still to be received, with the average remaining term of the leases.","es":""},"correct":false,"feedback":{"fr":"","en":"A single amount is not a maturity analysis by year.","es":""}},{"id":"B","text":{"fr":"","en":"Three bands of undiscounted payments: within one year, from one to five years, after five years.","es":""},"correct":false,"feedback":{"fr":"","en":"Grouping years two to five in one band does not meet the minimum annual analysis for the first five years.","es":""}},{"id":"C","text":{"fr":"","en":"Undiscounted amounts presented year by year for each of the first five years, then a total for the following three years.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Amounts discounted at the implicit rate for each of the eight years.","es":""},"correct":false,"feedback":{"fr":"","en":"The maturity analysis covers undiscounted amounts; discounting appears in the reconciliation to the net investment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000302","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000302","tested_point":"QST.IFRS16.000302","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §92"],"exercise":{"prompt":{"fr":"","en":"Beyond the figures, which additional qualitative and quantitative information does IFRS 16 mention as possibly necessary for a lessor? (several answers)","es":""},"explanation":{"fr":"","en":"The lessor provides the additional qualitative and quantitative information necessary to meet the disclosure objective, in particular about the nature of its leasing activities and its risk management strategy for rights retained in underlying assets, including the means by which it reduces that risk: buy-back agreements, residual value guarantees, variable lease payments for use in excess of specified limits (IFRS 16, para. 92).","es":""},"common_error":{"fr":"","en":"Limiting lessor disclosures to figures only.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The incremental borrowing rate used by each lessee to measure its lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The incremental borrowing rate is a lessee input; it is not part of this lessor information.","es":""}},{"id":"B","text":{"fr":"","en":"The nature of its leasing activities.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Its risk management strategy for the rights it retains in underlying assets.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A list of its lessees by name with their individual credit rating.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not require a list of lessees by name with their rating.","es":""}},{"id":"E","text":{"fr":"","en":"The means by which it reduces that risk, for example buy-back agreements, residual value guarantees or variable lease payments for use in excess of specified limits.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000303","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000303","tested_point":"QST.IFRS16.000303","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §93"],"exercise":{"prompt":{"fr":"","en":"During the year, Hélion Finance's net investment in its finance leases increased from 2,000,000 to 3,500,000, following the purchase of a portfolio of leases and several early terminations. What specific disclosure does IFRS 16 require in this respect?","es":""},"explanation":{"fr":"","en":"The lessor provides a qualitative and quantitative explanation of the significant changes in the carrying amount of the net investment in finance leases (IFRS 16, para. 93). Here, the increase from 2,000,000 to 3,500,000 results from a portfolio purchase and terminations: Hélion describes these causes and quantifies their effect.","es":""},"common_error":{"fr":"","en":"Giving a narrative description only, without quantifying the causes of the change.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A qualitative and quantitative explanation of the significant changes in the carrying amount of the net investment.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"None: the maturity analysis of payments receivable is enough to explain the change.","es":""},"correct":false,"feedback":{"fr":"","en":"The maturity analysis does not replace the explanation of significant changes in the net investment.","es":""}},{"id":"C","text":{"fr":"","en":"A qualitative explanation only, since the amounts already appear in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"The explanation must be both qualitative and quantitative.","es":""}},{"id":"D","text":{"fr":"","en":"Information limited to operating leases, the net investment not being concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"This requirement precisely concerns the net investment in finance leases.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000304","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000304","tested_point":"QST.IFRS16.000304","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §95","IFRS 16 §96"],"exercise":{"prompt":{"fr":"","en":"The Corbières group uses some of its forklift trucks itself and leases out the others under operating leases; it also holds investment property that is leased out. Which statements about its disclosures are correct? (several answers)","es":""},"explanation":{"fr":"","en":"For property, plant and equipment subject to operating leases, the lessor applies the IAS 16 disclosures, disaggregating each class between leased assets and assets held and used by the lessor (IFRS 16, para. 95). It also applies to assets subject to operating leases the disclosure requirements of IAS 36, IAS 38, IAS 40 and IAS 41 (IFRS 16, para. 96).","es":""},"common_error":{"fr":"","en":"Combining leased assets and assets in use in the IAS 16 tables.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No disclosure is required on leased assets, since the lessees provide theirs.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessees' disclosures do not exempt the lessor from its own on the assets it leases out.","es":""}},{"id":"B","text":{"fr":"","en":"For property, plant and equipment, each IAS 16 class is disaggregated between assets subject to operating leases and assets not leased.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The disclosure requirements of IAS 36 apply to assets subject to operating leases.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The IAS 16 disclosures on leased forklift trucks are combined with those on forklift trucks in use, without distinction.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosures about leased assets must be provided separately from those about assets in use.","es":""}},{"id":"E","text":{"fr":"","en":"The disclosure requirements of IAS 40 apply to investment property subject to operating leases.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000305","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000305","tested_point":"QST.IFRS16.000305","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §89","IFRS 16 §92"],"exercise":{"prompt":{"fr":"","en":"Aérolia, a lessor of regional aircraft under operating leases, provides all the figures required of lessors. However, most of its fleet consists of a single model whose resale value at the end of the leases is highly uncertain, and Aérolia hedges this risk through residual value guarantees negotiated case by case. The finance director considers that the standard's list of disclosures is exhaustive and that nothing needs to be added. Which position do you defend?","es":""},"explanation":{"fr":"","en":"Lessor disclosures aim to enable users to assess the effect of leases on its financial position, financial performance and cash flows (IFRS 16, para. 89). To that end, the lessor provides the additional qualitative and quantitative information necessary, in particular on the management of risk associated with rights retained in underlying assets and the means of reducing it, such as residual value guarantees (IFRS 16, para. 92). The concentration on one model and the uncertain resale value make this information necessary here; its content is a matter of judgement.","es":""},"common_error":{"fr":"","en":"Treating disclosures as a closed checklist.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The finance director is right: the standard lists the lessor's disclosures exhaustively.","es":""},"correct":false,"feedback":{"fr":"","en":"The required amounts are not exhaustive: additional information is required when necessary to meet the disclosure objective.","es":""}},{"id":"B","text":{"fr":"","en":"These matters belong only in the management report, outside the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"This information belongs in the notes to the financial statements when it is necessary to meet the disclosure objective.","es":""}},{"id":"C","text":{"fr":"","en":"Aérolia must reclassify the leases as finance leases to show the risk in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Reclassifying the leases does not answer the question: the disclosure objective is met through additional information in the notes.","es":""}},{"id":"D","text":{"fr":"","en":"Aérolia adds to its notes qualitative and quantitative information on its risk management strategy for the rights retained in the aircraft and on the residual value guarantees.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000306","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000306","tested_point":"QST.IFRS16.000306","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §94"],"exercise":{"prompt":{"fr":"","en":"Reviewing Valdrôme's note on finance leases, you find that it presents, by year, the payments receivable discounted at the implicit rate, whose total equals the net investment in the statement of financial position. No other table is provided. What correction do you require?","es":""},"explanation":{"fr":"","en":"The lessor must present a maturity analysis of the undiscounted lease payments to be received, then reconcile these undiscounted payments to the net investment, identifying the unearned finance income and the discounted unguaranteed residual value (IFRS 16, para. 94). A table of discounted amounts, even consistent with the statement of financial position, meets neither of these requirements.","es":""},"common_error":{"fr":"","en":"Omitting the reconciliation between undiscounted payments and the net investment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: agreement of the total with the statement of financial position shows the information is complete.","es":""},"correct":false,"feedback":{"fr":"","en":"Agreement with the statement of financial position replaces neither the undiscounted analysis nor the required reconciliation.","es":""}},{"id":"B","text":{"fr":"","en":"Present the maturity analysis in undiscounted amounts and reconcile it to the net investment, showing the unearned finance income and the discounted unguaranteed residual value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only add the maturity analysis of operating lease payments, the existing table covering finance leases.","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis specific to operating leases does not correct the note on finance leases.","es":""}},{"id":"D","text":{"fr":"","en":"Replace this table with the breakdown of income for the period in a tabular format.","es":""},"correct":false,"feedback":{"fr":"","en":"The breakdown of income for the period is other information; it does not replace the maturity analysis.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000307","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000307","tested_point":"QST.IFRS16.000307","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §90","IFRS 16 §93","IFRS 16 §94","IFRS 16 §97"],"exercise":{"prompt":{"fr":"","en":"The Méridienne Équipements group is a lessor of both finance leases (industrial equipment) and operating leases (commercial vehicles). You are preparing the checklist of its disclosures. Which items does it include? (several answers)","es":""},"explanation":{"fr":"","en":"The lessor discloses finance income on the net investment and operating lease income (IFRS 16, para. 90). For finance leases, it presents an undiscounted maturity analysis reconciled to the net investment (IFRS 16, para. 94) and explains significant changes in the net investment (IFRS 16, para. 93). For operating leases, it presents a maturity analysis of undiscounted lease payments (IFRS 16, para. 97), with no reconciliation to the carrying amount of the assets.","es":""},"common_error":{"fr":"","en":"Omitting the reconciliation between undiscounted payments and the net investment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A reconciliation of undiscounted operating lease payments to the carrying amount of the leased vehicles.","es":""},"correct":false,"feedback":{"fr":"","en":"No such reconciliation is required for operating leases; the reconciliation concerns the net investment.","es":""}},{"id":"B","text":{"fr":"","en":"Finance income on the net investment in finance leases.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Operating lease income.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A maturity analysis of undiscounted finance lease payments, reconciled to the net investment.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A maturity analysis of operating lease payments discounted at the implicit rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The maturity analysis of operating lease payments covers undiscounted amounts.","es":""}},{"id":"F","text":{"fr":"","en":"A qualitative and quantitative explanation of significant changes in the net investment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000308","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000308","tested_point":"QST.IFRS16.000308","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §97"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, Pélisse has a single operating lease, of a retail unit, which still runs for eight years at a fixed payment of 10,000 a year, payable at the beginning of each year. Which maturity analysis of undiscounted lease payments to be received meets the minimum required?","es":""},"explanation":{"fr":"","en":"For operating leases, the lessor presents a maturity analysis of undiscounted lease payments to be received, on an annual basis for a minimum of each of the first five years, then a total for the remaining years (IFRS 16, para. 97). Years one to five: 10,000 each; years six to eight: 3 × 10,000 = 30,000.","es":""},"common_error":{"fr":"","en":"Presenting multi-year bands for the first five years.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Within one year: 10,000; from one to five years: 40,000; after five years: 30,000.","es":""},"correct":false,"feedback":{"fr":"","en":"A one-to-five-year band groups several of the first five years, which must be presented year by year.","es":""}},{"id":"B","text":{"fr":"","en":"A total amount of 80,000 to be received.","es":""},"correct":false,"feedback":{"fr":"","en":"A single total is not a maturity analysis.","es":""}},{"id":"C","text":{"fr":"","en":"The same maturities, but discounted at the interest rate implicit in the lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis covers undiscounted amounts.","es":""}},{"id":"D","text":{"fr":"","en":"Each of years one to five: 10,000; total for the following years: 30,000.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000309","standard_id":"IFRS16","concept_ids":["IFRS16.LESSOR_DISCLOSURE.REQUIREMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000309","tested_point":"QST.IFRS16.000309","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000016","section_id":"disclosure-objective"},"references":["IFRS 16 §90"],"exercise":{"prompt":{"fr":"","en":"The property company Rivelune leases out shops under operating leases. Each lease payment has a fixed part indexed annually to a price index and a part equal to a percentage of the lessee's sales above a threshold. In the note on lease income, which income must Rivelune disclose separately?","es":""},"explanation":{"fr":"","en":"For operating leases, the lessor discloses lease income, separately disclosing income relating to variable lease payments that do not depend on an index or a rate (IFRS 16, para. 90). Payments based on the lessee's sales are such payments; the part indexed to a price index depends on an index and need not be disclosed separately.","es":""},"common_error":{"fr":"","en":"Separating the indexed part instead of the sales-based part.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Income arising from indexation to the price index.","es":""},"correct":false,"feedback":{"fr":"","en":"The indexed part depends on an index: it is not part of the income to be disclosed separately.","es":""}},{"id":"B","text":{"fr":"","en":"Income arising from indexation and income based on sales, together.","es":""},"correct":false,"feedback":{"fr":"","en":"Only variable payments that do not depend on an index or a rate are disclosed separately.","es":""}},{"id":"C","text":{"fr":"","en":"Income relating to lease payments based on the lessee's sales.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None: only total lease income has to be disclosed.","es":""},"correct":false,"feedback":{"fr":"","en":"Income relating to variable payments that do not depend on an index or a rate must be disclosed separately.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000310","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000310","tested_point":"QST.IFRS16.000310","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"subleases"},"references":["IFRS 16 §B58"],"exercise":{"prompt":{"fr":"","en":"Orvane leases a warehouse for 12 years from an investor (head lease) and subleases part of it to a logistics firm. The head lease is not a short-term lease. By reference to what does Orvane, as intermediate lessor, classify the sublease?","es":""},"explanation":{"fr":"","en":"Except where the head lease is a short-term lease accounted for under the exemption, the intermediate lessor classifies the sublease by reference to the right-of-use asset arising from the head lease, not by reference to the underlying asset (IFRS 16, para. B58). Orvane therefore assesses the risks and rewards transferred to the logistics firm in relation to that 12-year right of use.","es":""},"common_error":{"fr":"","en":"Comparing the sublease term with the economic life of the building instead of with the right of use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By reference to the warehouse itself, the underlying asset of the head lease.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the classic error: Orvane does not own the warehouse, it holds a right of use, which is the reference for classification.","es":""}},{"id":"B","text":{"fr":"","en":"By reference to the classification adopted by the investor, Orvane's lessor, for the head lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The investor's classification of the head lease does not determine that of the sublease: the reference is Orvane's right-of-use asset.","es":""}},{"id":"C","text":{"fr":"","en":"By reference to the right-of-use asset arising from the head lease.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"By reference to Orvane's lease liability towards the investor.","es":""},"correct":false,"feedback":{"fr":"","en":"The lease liability is a liability; classification is made by reference to an asset, the right-of-use asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000311","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING","IFRS16.SCOPE.EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000311","tested_point":"QST.IFRS16.000311","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B58","IFRS 16 §6"],"exercise":{"prompt":{"fr":"","en":"Brelin leases an exhibition stand for 9 months and applies to this short-term lease the exemption allowing it to recognise the lease payments as an expense. Throughout this period, it subleases the stand to a young brand. How does Brelin classify the sublease?","es":""},"explanation":{"fr":"","en":"When the head lease is a short-term lease that the lessee accounts for under the exemption, recognising the lease payments as an expense (IFRS 16, para. 6), the intermediate lessor classifies the sublease as an operating lease (IFRS 16, para. B58). The analysis by reference to the right-of-use asset applies only in other cases.","es":""},"common_error":{"fr":"","en":"Applying the risks and rewards analysis when the exempted head lease requires an operating lease.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an operating lease, without further analysis.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a finance lease, since the sublease covers the whole term of the head lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis by reference to the right of use is set aside here: the sublease of an exempted short-term head lease is an operating lease.","es":""}},{"id":"C","text":{"fr":"","en":"By reference to the stand itself, the underlying asset, using the usual indicators.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is never made by reference to the underlying asset; and here the exemption applied to the head lease requires an operating lease.","es":""}},{"id":"D","text":{"fr":"","en":"It does not classify it: a sublease of an exempted lease is outside the scope of IFRS 16.","es":""},"correct":false,"feedback":{"fr":"","en":"The sublease remains within the scope of the standard: Brelin is an intermediate lessor and classifies the sublease.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000312","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING","IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000312","tested_point":"QST.IFRS16.000312","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §B58","IFRS 16 §62"],"exercise":{"prompt":{"fr":"","en":"A restaurant group, Tavira, is the lessee of commercial premises for 15 years and subleases part of them to a franchisee. The head lease is not accounted for under the short-term lease exemption. Which of the following statements on Tavira's classification of the sublease are correct?","es":""},"explanation":{"fr":"","en":"A lease is a finance lease if it transfers substantially all the risks and rewards incidental to ownership, otherwise an operating lease (IFRS 16, para. 62). For a sublease whose head lease is not an exempted short-term lease, this analysis is made by reference to the right-of-use asset arising from the head lease, not the underlying premises (IFRS 16, para. B58). B and D are therefore correct; A targets the wrong asset and C ignores that the intermediate lessor may conclude on a finance lease.","es":""},"common_error":{"fr":"","en":"Concluding on an operating lease merely because the intermediate lessor is not the owner.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tavira assesses the risks and rewards incidental to ownership of the premises themselves, as the owner would.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the reference is Tavira's right-of-use asset, not the premises, which Tavira does not hold.","es":""}},{"id":"B","text":{"fr":"","en":"Tavira assesses whether the sublease transfers to the franchisee substantially all the risks and rewards relating to its right-of-use asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The sublease is necessarily an operating lease, since Tavira does not own the premises.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: not being the owner does not prevent a finance lease classification; only an exempted short-term head lease requires an operating lease.","es":""}},{"id":"D","text":{"fr":"","en":"The sublease may be classified as a finance lease if it transfers substantially all the risks and rewards of the right-of-use asset.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000313","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING","IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000313","tested_point":"QST.IFRS16.000313","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §B58","IFRS 16 §63"],"exercise":{"prompt":{"fr":"","en":"Kelmar is the lessee of an office building for 20 years; the economic life of the building is estimated at 50 years. At the start of year 3, Kelmar subleases the entire building to Doriel for the remaining 18 years of the head lease, without any particular option or guarantee. Kelmar's controller proposes an operating lease, on the grounds that 18 years are only a small part of the 50-year life of the building. Which analysis do you adopt?","es":""},"explanation":{"fr":"","en":"The sublease is classified by reference to the right-of-use asset arising from the head lease, not the underlying building (IFRS 16, para. B58). A lease term covering the major part of the economic life of the asset is an example of a situation that normally leads to a finance lease (IFRS 16, para. 63). Here the reference asset is Kelmar's right of use, which has 18 years left: the sublease covers it entirely. The controller's reasoning, based on the 50 years of the building, targets the wrong asset. The final classification remains a judgement on the substance of the contract as a whole.","es":""},"common_error":{"fr":"","en":"Relating the sublease term to the economic life of the underlying building instead of the right of use.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Confirm the operating lease: the sublease term must be compared with the economic life of the building.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the targeted error: comparing with the life of the building amounts to classifying by reference to the underlying asset.","es":""}},{"id":"B","text":{"fr":"","en":"Analyse the sublease in relation to Kelmar's right-of-use asset, which it covers until its end: this situation normally leads to a finance lease, subject to the overall analysis.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Conclude on an automatic finance lease, since any sublease of the whole asset is a finance lease whatever its features.","es":""},"correct":false,"feedback":{"fr":"","en":"The situations listed by the standard normally lead to a finance lease but do not remove the need to assess the substance of the contract; there is no automatic classification.","es":""}},{"id":"D","text":{"fr":"","en":"Adopt an operating lease, because the 20-year head lease is an exempted short-term lease.","es":""},"correct":false,"feedback":{"fr":"","en":"A 20-year lease is not a short-term lease: the operating lease exception does not apply.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000314","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING","IFRS16.SCOPE.EXEMPTIONS"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000314","tested_point":"QST.IFRS16.000314","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000002","section_id":"exemptions-rule"},"references":["IFRS 16 §B58","IFRS 16 §8"],"exercise":{"prompt":{"fr":"","en":"Nautéa leases a cold-storage warehouse for 10 months. For the class of warehouse assets, it has not elected the short-term lease exemption and therefore recognises a right-of-use asset and a lease liability. It subleases the warehouse to a fish wholesaler for the 10 months. How should Nautéa approach the classification of the sublease?","es":""},"explanation":{"fr":"","en":"The default operating lease classification only covers the case where the head lease is a short-term lease that the lessee accounts for under the exemption; otherwise, classification is made by reference to the right-of-use asset arising from the head lease (IFRS 16, para. B58). The exemption is elected by class of underlying asset (IFRS 16, para. 8): as Nautéa did not elect it for its warehouses, the short duration is not enough, and it must analyse the sublease in relation to its 10-month right of use.","es":""},"common_error":{"fr":"","en":"Treating any head lease of less than 12 months as exempted, even when the exemption was not elected.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Operating lease by default, since the head lease lasts less than 12 months.","es":""},"correct":false,"feedback":{"fr":"","en":"The short duration is not enough: the head lease must actually be accounted for under the exemption, which is not the case here.","es":""}},{"id":"B","text":{"fr":"","en":"Classification by reference to the warehouse, whose economic life far exceeds 10 months.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is not made by reference to the underlying asset but to the right-of-use asset.","es":""}},{"id":"C","text":{"fr":"","en":"No classification: a sublease of less than 12 months is outside the scope of IFRS 16.","es":""},"correct":false,"feedback":{"fr":"","en":"The sublease is within the scope of the standard; only the classification approach is at stake.","es":""}},{"id":"D","text":{"fr":"","en":"Classification by reference to the right-of-use asset arising from the head lease, the operating lease exception not applying as no exemption was applied.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000315","standard_id":"IFRS16","concept_ids":["IFRS16.SUBLEASES.ACCOUNTING","IFRS16.LESSOR_CLASSIFICATION.CRITERIA"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000315","tested_point":"QST.IFRS16.000315","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000013","section_id":"classification-rule"},"references":["IFRS 16 §B58","IFRS 16 §62","IFRS 16 §63"],"exercise":{"prompt":{"fr":"","en":"You are preparing the classification file for a sublease granted by Ardoval, the lessee of a production line for 8 years. Which information is relevant for this classification?","es":""},"explanation":{"fr":"","en":"The intermediate lessor first checks whether the head lease is an exempted short-term lease, in which case the sublease is an operating lease; otherwise, it classifies the sublease by reference to the right-of-use asset (IFRS 16, para. B58), assessing whether it transfers substantially all the risks and rewards of that asset (IFRS 16, para. 62), for example in view of the term covered (IFRS 16, para. 63). A, C and E are relevant. The economic life of the line itself (B) refers to the underlying asset, and the classification adopted by Ardoval's lessor (D) is not the reference asset.","es":""},"common_error":{"fr":"","en":"Using the economic life of the underlying asset in the sublease classification file.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Whether or not the head lease is a short-term lease accounted for under the exemption.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The economic life of the production line itself, used as the basis of comparison.","es":""},"correct":false,"feedback":{"fr":"","en":"Not relevant as a basis of comparison: it is the underlying asset, whereas the reference is the right-of-use asset.","es":""}},{"id":"C","text":{"fr":"","en":"The remaining term of Ardoval's right of use compared with the sublease term.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The classification of the head lease adopted by Ardoval's lessor in its own accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"Not relevant: the classification of the sublease follows from Ardoval's right-of-use asset, not from its own lessor's analysis.","es":""}},{"id":"E","text":{"fr":"","en":"The share of the risks and rewards relating to the right-of-use asset that the sublease transfers to the sublessee.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000316","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000316","tested_point":"QST.IFRS16.000316","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §99"],"exercise":{"prompt":{"fr":"","en":"Pellane sells its head office to an investor and immediately leases it back. To determine whether the transfer of the building is to be accounted for as a sale, which requirements does Pellane refer to?","es":""},"explanation":{"fr":"","en":"To determine whether the transfer of the asset is a sale, the entity applies the requirements of IFRS 15 for determining when a performance obligation is satisfied (IFRS 16, para. 99). IFRS 16 sets no term threshold or criterion of its own, and does not rely on the legal deed alone or on the lessor's classification criteria.","es":""},"common_error":{"fr":"","en":"Concluding on a sale based only on the legal form of the contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The lessor's lease classification criteria (finance lease or operating lease).","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor's classification criteria are used to classify the leaseback, not to say whether the transfer is a sale.","es":""}},{"id":"B","text":{"fr":"","en":"Only the transfer of legal title evidenced by the notarial deed.","es":""},"correct":false,"feedback":{"fr":"","en":"The legal deed is not enough: the sale conclusion results from the IFRS 15 analysis of the performance obligation.","es":""}},{"id":"C","text":{"fr":"","en":"A threshold for the leaseback term set by IFRS 16 relative to the life of the building.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 sets no such threshold; it refers to IFRS 15.","es":""}},{"id":"D","text":{"fr":"","en":"The requirements of IFRS 15 for determining when a performance obligation is satisfied.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000317","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000317","tested_point":"QST.IFRS16.000317","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §98"],"exercise":{"prompt":{"fr":"","en":"Corvelle transfers a hangar to Stanor and then leases it back from Stanor for 7 years. Which of the following statements correctly describes the scope of the requirements on sale and leaseback transactions?","es":""},"explanation":{"fr":"","en":"When an entity (seller-lessee) transfers an asset to another entity (buyer-lessor) and leases that asset back from it, both parties account for the transfer contract and the lease applying paragraphs 99 to 103 (IFRS 16, para. 98). These paragraphs deal both with a transfer that is a sale and with one that is not.","es":""},"common_error":{"fr":"","en":"Thinking that the buyer-lessor is not affected by the sale and leaseback requirements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only Corvelle, the seller-lessee, applies these requirements; Stanor applies the general lessor rules without any regard to the transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"Both parties are covered: Stanor, the buyer-lessor, also applies the sale and leaseback requirements.","es":""}},{"id":"B","text":{"fr":"","en":"Corvelle and Stanor both account for the transfer contract and the lease under the requirements specific to sale and leaseback.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"These requirements only cover transfers that meet the criteria for a sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The requirements also cover the case where the transfer is not a sale, with a specific treatment.","es":""}},{"id":"D","text":{"fr":"","en":"These requirements only apply if the leaseback is a finance lease.","es":""},"correct":false,"feedback":{"fr":"","en":"No classification condition on the leaseback restricts the scope of these requirements.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000318","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000318","tested_point":"QST.IFRS16.000318","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §99","IFRS 16 §B45","IFRS 16 §B46","IFRS 16 §B47"],"exercise":{"prompt":{"fr":"","en":"In a three-party arrangement (manufacturer, lessor, lessee) involving industrial equipment, which statements are correct in determining whether there is a sale and leaseback transaction?","es":""},"explanation":{"fr":"","en":"The lessee obtaining legal title does not by itself determine the accounting (IFRS 16, para. B45). The criterion is control: if the lessee controls or obtains control of the asset before its transfer to the lessor, the arrangement is a sale and leaseback (IFRS 16, para. B46); otherwise, it is accounted for as a lease, even if the lessee held the title (IFRS 16, para. B47). In a sale and leaseback, the sale assessment falls under IFRS 15 (IFRS 16, para. 99). IFRS 16 sets no term threshold: D is false.","es":""},"common_error":{"fr":"","en":"Treating the lessee's temporary holding of legal title as a sale and leaseback.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As soon as the lessee obtains legal title to the equipment before the lessor, the arrangement is a sale and leaseback.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal title is not enough: what matters is obtaining control before the transfer to the lessor.","es":""}},{"id":"B","text":{"fr":"","en":"If the lessee controls the equipment, or obtains control of it, before transferring it to the lessor, the arrangement is a sale and leaseback.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"If the lessee does not obtain control of the equipment before its transfer to the lessor, the arrangement is accounted for as a lease.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"IFRS 16 treats the arrangement as a sale and leaseback when the leaseback lasts at least 75% of the economic life of the equipment.","es":""},"correct":false,"feedback":{"fr":"","en":"No such threshold exists in IFRS 16; the assessment rests on control and then on IFRS 15.","es":""}},{"id":"E","text":{"fr":"","en":"Where there is a sale and leaseback, whether the transfer is a sale is assessed under the IFRS 15 requirements on satisfying a performance obligation.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000319","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000319","tested_point":"QST.IFRS16.000319","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §B47","IFRS 16 §B45"],"exercise":{"prompt":{"fr":"","en":"Mirlon wants to use a new press manufactured by Hydrex. Mirlon, Hydrex and the finance company Locafin negotiate together: Locafin will buy the press and lease it to Mirlon for 6 years. For administrative reasons, legal title briefly passes through Mirlon on the delivery date, but Mirlon at no time obtains control of the press before its transfer to Locafin. How does Mirlon account for the arrangement?","es":""},"explanation":{"fr":"","en":"The lessee holding legal title does not by itself determine the accounting (IFRS 16, para. B45). When the lessee does not obtain control of the asset before its transfer to the lessor, in particular when the manufacturer, the lessor and the lessee negotiate the purchase by the lessor and the lease to the lessee, the arrangement is not a sale and leaseback and is accounted for as a lease (IFRS 16, para. B47).","es":""},"common_error":{"fr":"","en":"Inferring a sale and leaseback from the chain of legal titles alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a sale and leaseback, since Mirlon held legal title before Locafin.","es":""},"correct":false,"feedback":{"fr":"","en":"The passage of title is not enough: without prior control by Mirlon, there is no sale and leaseback.","es":""}},{"id":"B","text":{"fr":"","en":"As a purchase of the press followed by a sale to Locafin, with a gain or loss on disposal.","es":""},"correct":false,"feedback":{"fr":"","en":"Mirlon never controlled the press: it can neither acquire nor sell it for accounting purposes.","es":""}},{"id":"C","text":{"fr":"","en":"As a lease entered into with Locafin, with no sale and leaseback.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As a financing: Mirlon keeps the press as an asset and recognises a financial liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Financing treatment requires a sale and leaseback whose transfer is not a sale; here, there is no sale and leaseback.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000320","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000320","tested_point":"QST.IFRS16.000320","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §B46","IFRS 16 §98"],"exercise":{"prompt":{"fr":"","en":"Fenwald buys a fleet of forklift trucks, puts them into service in its warehouses and operates them for 4 months. It then transfers them to Rentaxis, which leases them back to Fenwald for 5 years. How should the arrangement be characterised?","es":""},"explanation":{"fr":"","en":"When the lessee controls the underlying asset before transferring it to the lessor, the arrangement is a sale and leaseback accounted for under paragraphs 98 to 103 (IFRS 16, para. B46). Fenwald acquired and operated the trucks: it controlled them before the transfer. Both parties therefore account for the transfer and the lease under those requirements (IFRS 16, para. 98); it then remains to assess, under IFRS 15, whether the transfer is a sale.","es":""},"common_error":{"fr":"","en":"Confusing a sale and leaseback with the three-party arrangement in which the lessee never has control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a sale and leaseback transaction, to be accounted for under paragraphs 98 to 103.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a simple lease between Rentaxis and Fenwald, the initial purchase being ignored.","es":""},"correct":false,"feedback":{"fr":"","en":"The purchase cannot be ignored: Fenwald controlled the trucks before transferring them to Rentaxis.","es":""}},{"id":"C","text":{"fr":"","en":"As an arrangement outside the scope of IFRS 16, since the trucks have already been used.","es":""},"correct":false,"feedback":{"fr":"","en":"Prior use of the trucks does not exclude the arrangement from the scope; on the contrary, it confirms Fenwald's control.","es":""}},{"id":"D","text":{"fr":"","en":"As a sale and leaseback only if Rentaxis negotiated the purchase directly with the manufacturer.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: a direct negotiation between lessor and manufacturer, without prior control by the lessee, excludes a sale and leaseback.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000321","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT","IFRS16.SALE_LEASEBACK.NOT_A_SALE"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000321","tested_point":"QST.IFRS16.000321","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §99","IFRS 16 §103"],"exercise":{"prompt":{"fr":"","en":"Valtène transfers a data centre to Infrabail and leases it back for 10 years. The contract gives Valtène an option to repurchase the centre. The IFRS 15 analysis provided in the file concludes that, because of this option, control of the centre is not transferred to Infrabail. The finance director nevertheless wishes to recognise a sale, since the deed of transfer has been signed. Which conclusion do you adopt?","es":""},"explanation":{"fr":"","en":"Whether the transfer is a sale follows from the IFRS 15 requirements on satisfying the performance obligation (IFRS 16, para. 99). The IFRS 15 analysis in the file, a case datum, concludes that control is not transferred: the transfer is therefore not a sale. Valtène continues to recognise the centre and recognises a financial liability equal to the transfer proceeds, applying IFRS 9 (IFRS 16, para. 103). Signing the deed does not change this conclusion.","es":""},"common_error":{"fr":"","en":"Recognising a sale despite a repurchase option which, according to the IFRS 15 analysis, prevents the transfer of control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The transfer is a sale, since the deed of transfer has been signed and the price collected.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the targeted error: signature and collection are not enough when the IFRS 15 analysis concludes that control is not transferred.","es":""}},{"id":"B","text":{"fr":"","en":"The transfer is not a sale: Valtène continues to recognise the centre and recognises a financial liability equal to the transfer proceeds.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The transfer is a sale, but only half of the gain on disposal is recognised because of the option.","es":""},"correct":false,"feedback":{"fr":"","en":"No partial sale is provided for: either the transfer is a sale or it is not.","es":""}},{"id":"D","text":{"fr":"","en":"The transfer is a sale if Infrabail classifies the leaseback as an operating lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor's lease classification does not determine whether there is a sale, which falls under IFRS 15.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000322","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000322","tested_point":"QST.IFRS16.000322","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §99","IFRS 16 §98"],"exercise":{"prompt":{"fr":"","en":"In the draft note of Aubrac Logistique, a sale and leaseback of a warehouse is presented as a sale on the grounds that the contract is entitled sale agreement and that the buyer-lessor is an independent third party. Which correction of the justification do you propose?","es":""},"explanation":{"fr":"","en":"In a sale and leaseback transaction, both parties apply paragraphs 99 to 103 (IFRS 16, para. 98), and whether the transfer is a sale results from applying the IFRS 15 requirements on when a performance obligation is satisfied (IFRS 16, para. 99). The title of the contract or the independence of the buyer do not replace this analysis, and IFRS 16 sets no term criterion.","es":""},"common_error":{"fr":"","en":"Justifying the sale by the legal form or the status of the counterparty.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: the title of the contract and the independence of the buyer are enough to establish a sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The title and the buyer's independence do not replace the IFRS 15 analysis required by the standard.","es":""}},{"id":"B","text":{"fr":"","en":"Replace the justification with the leaseback term, which is much shorter than the economic life of the warehouse.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 16 sets no term criterion for determining a sale.","es":""}},{"id":"C","text":{"fr":"","en":"Base the conclusion on the IFRS 15 analysis of when the performance obligation to transfer the warehouse is satisfied.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Conclude on a sale only if the buyer-lessor classifies the leaseback as a finance lease.","es":""},"correct":false,"feedback":{"fr":"","en":"The lessor's classification of the leaseback is not the criterion for a sale.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000323","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.ASSESSMENT","IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE","IFRS16.SALE_LEASEBACK.NOT_A_SALE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000323","tested_point":"QST.IFRS16.000323","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §99","IFRS 16 §100","IFRS 16 §103"],"exercise":{"prompt":{"fr":"","en":"The conclusion of the IFRS 15 analysis of a sale and leaseback governs the whole of its subsequent accounting. Which statements about the consequences of that conclusion are correct?","es":""},"explanation":{"fr":"","en":"Whether there is a sale results from IFRS 15 (IFRS 16, para. 99). If the transfer is a sale, the seller-lessee measures the right-of-use asset at the proportion of the previous carrying amount relating to the right of use retained and recognises only the gain or loss relating to the rights transferred (IFRS 16, para. 100). Otherwise, it keeps the asset and recognises a financial liability equal to the transfer proceeds, while the buyer-lessor does not recognise the asset but a financial asset (IFRS 16, para. 103). A and D are correct.","es":""},"common_error":{"fr":"","en":"Recognising the whole gain on disposal when the transfer is a sale.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"If the transfer is a sale, the seller-lessee recognises a right-of-use asset arising from the leaseback and only a portion of the gain or loss on disposal.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"If the transfer is a sale, the seller-lessee recognises the whole gain or loss on disposal, the leaseback being accounted for separately.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the part of the gain relating to the right of use retained is not recognised.","es":""}},{"id":"C","text":{"fr":"","en":"If the transfer is not a sale, the buyer-lessor recognises the transferred asset and leases it out.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: without a sale, the buyer-lessor does not recognise the transferred asset; it recognises a financial asset.","es":""}},{"id":"D","text":{"fr":"","en":"If the transfer is not a sale, the seller-lessee keeps the asset and recognises a financial liability equal to the transfer proceeds.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000324","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000324","tested_point":"QST.IFRS16.000324","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"sale-accounting"},"references":["IFRS 16 §100"],"exercise":{"prompt":{"fr":"","en":"Granvelle transfers an office building to the investor Pierreval and leases it back for 8 years. According to the IFRS 15 analysis provided, the transfer is a sale. Which of the following statements correctly describes the accounting by both parties?","es":""},"explanation":{"fr":"","en":"When the transfer is a sale under IFRS 15, the seller-lessee measures the right-of-use asset arising from the leaseback as the share of the asset's previous carrying amount that corresponds to the right of use it keeps, and recognises in profit or loss only the part of the gain or loss attributable to the rights passed to the buyer-lessor. The buyer-lessor accounts for the purchase under the applicable standards and for the lease under the lessor accounting requirements (IFRS 16, para. 100).","es":""},"common_error":{"fr":"","en":"Recognising the whole gain on disposal in profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Granvelle recognises the whole gain on disposal and measures the right-of-use asset at the present value of the lease payments; Pierreval recognises the purchase of the building.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the targeted error: the part of the gain relating to the right of use retained is not recognised, and the right-of-use asset is measured on the previous carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"Granvelle measures the right-of-use asset at the proportion of the previous carrying amount relating to the right of use retained and recognises only the gain or loss relating to the rights transferred; Pierreval accounts for the purchase under the applicable standards and for the lease under the lessor requirements.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Granvelle measures the right-of-use asset at the fair value of the building and defers the whole gain over the lease term; Pierreval recognises a financial asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The right-of-use asset is not measured at fair value, and the gain on the rights transferred is recognised immediately; a financial asset is the case where there is no sale.","es":""}},{"id":"D","text":{"fr":"","en":"Granvelle recognises no gain until the lease has ended; Pierreval does not recognise the building.","es":""},"correct":false,"feedback":{"fr":"","en":"This treatment ignores the sale: the gain relating to the rights transferred is recognised, and Pierreval recognises the building purchased.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000325","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000801","tested_point":"VG.IFRS16.000801","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"sale-accounting"},"references":["IFRS 16 §100"],"exercise":{"prompt":{"fr":"","en":"Hestan transfers a warehouse to a property fund for {sale_price}, equal to the fair value of the warehouse, and leases it back; according to the IFRS 15 analysis provided, the transfer is a sale. The carrying amount of the warehouse is {carrying_amount}. The present value of the leaseback payments, payable at the end of each year, is {pv_lease_payments}. Case assumption: the proportion of the right of use retained is measured as the ratio of that present value to the fair value of the warehouse. Compute the right-of-use asset and the gain recognised on the disposal.","es":""},"explanation":{"fr":"","en":"The seller-lessee measures the right-of-use asset at the proportion of the previous carrying amount relating to the right of use retained and recognises only the gain relating to the rights transferred (IFRS 16, para. 100). Proportion retained (case assumption): 450,000 / 1,500,000 = 30%. Right-of-use asset: 600,000 × 30% = 180,000. Total gain: 1,500,000 − 600,000 = 900,000; portion relating to the rights transferred: 900,000 × 70% = 630,000. Check through the entry: 1,500,000 + 180,000 − 600,000 − 450,000 = 630,000.","es":""},"common_error":{"fr":"","en":"Recognising the total gain of 900,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"sale_price","value":"1500000","unit":"EUR"},{"id":"carrying_amount","value":"600000","unit":"EUR"},{"id":"pv_lease_payments","value":"450000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Sale price (equal to fair value)","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the warehouse","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the leaseback payments","es":""},"value":"450000","unit":"EUR"}],"steps":[{"id":"RIGHT_OF_USE_ASSET","label":{"fr":"","en":"Right-of-use asset","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"GAIN_RECOGNISED","label":{"fr":"","en":"Gain recognised (rights transferred)","es":""},"answer":630000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GAIN_RECOGNISED","meaning":{"fr":"","en":"Gain recognised (rights transferred)","es":""},"expression":"a + b - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sale price (equal to fair value)","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Right-of-use asset","es":""},"value":180000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of the warehouse","es":""},"value":600000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Present value of the leaseback payments","es":""},"value":450000,"unit":"EUR"}],"result":630000,"unit":"EUR"}],"rationale":{"fr":"","en":"The seller-lessee measures the right-of-use asset at the proportion of the previous carrying amount relating to the right of use retained and recognises only the gain relating to the rights transferred (IFRS 16, para. 100).","es":""},"references":["REF.IFRS16.100"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000326","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE","IFRS16.LESSEE_INITIAL.LEASE_LIABILITY"],"dimension":"CALCULATION","context":"V1_VG.IFRS16.000801","tested_point":"VG.IFRS16.000801","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000007","section_id":"payments-included"},"references":["IFRS 16 §100","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"The hotel group Solvène sells a hotel to a property company for {sale_price}, a price equal to the fair value of the hotel, whose carrying amount is {carrying_amount}. The attached IFRS 15 analysis concludes that there is a sale. Solvène leases the hotel back for {lease_term} years for an annual payment of {annual_payment} paid at the end of each year; the discount rate used is {discount_rate} and the corresponding rounded annuity factor is {annuity_factor}. Case assumption: the proportion of the right of use retained is the ratio of the present value of the lease payments to the fair value of the hotel. Determine the lease liability, the right-of-use asset and the gain recognised on the disposal.","es":""},"explanation":{"fr":"","en":"The lease liability is the present value of the lease payments not yet paid (IFRS 16, para. 26): 200,000 × 4.3295 = 865,900. The right-of-use asset is the proportion of the previous carrying amount relating to the right of use retained, and only the gain relating to the rights transferred is recognised (IFRS 16, para. 100). Proportion retained (case assumption): 865,900 / 4,000,000 = 21.6475%. Right-of-use asset: 2,400,000 × 21.6475% = 519,540. Total gain: 4,000,000 − 2,400,000 = 1,600,000; portion transferred: 1,600,000 × 78.3525% = 1,253,640. Check: 4,000,000 + 519,540 − 2,400,000 − 865,900 = 1,253,640.","es":""},"common_error":{"fr":"","en":"Using the undiscounted total of the lease payments (1,000,000) instead of their present value.","es":""},"format":"CALCULATION","placeholders":[{"id":"sale_price","value":"4000000","unit":"EUR"},{"id":"carrying_amount","value":"2400000","unit":"EUR"},{"id":"annual_payment","value":"200000","unit":"EUR"},{"id":"lease_term","value":"5","unit":"YEARS"},{"id":"discount_rate","value":"5","unit":"PERCENT"},{"id":"annuity_factor","value":"4.3295","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Sale price (equal to fair value)","es":""},"value":"4000000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the hotel","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Annual payment at the end of each year","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Leaseback term","es":""},"value":"5","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Rounded annuity factor","es":""},"value":"4.3295","unit":"UNITS"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Initial lease liability","es":""},"answer":865900,"tolerance":0,"unit":"EUR"},{"id":"RIGHT_OF_USE_ASSET","label":{"fr":"","en":"Right-of-use asset","es":""},"answer":519540,"tolerance":0,"unit":"EUR"},{"id":"GAIN_RECOGNISED","label":{"fr":"","en":"Gain recognised on the disposal","es":""},"answer":1253640,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_LIABILITY","meaning":{"fr":"","en":"Initial lease liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual payment at the end of each year","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rounded annuity factor","es":""},"value":4.3295,"unit":"UNITS"}],"result":865900,"unit":"EUR","rationale":{"fr":"","en":"The lease liability is the present value of the lease payments not yet paid (IFRS 16, para. 26): 200,000 × 4.3295 = 865,900.","es":""}},{"step":"GAIN_RECOGNISED","meaning":{"fr":"","en":"Gain recognised on the disposal","es":""},"expression":"a + b - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Sale price (equal to fair value)","es":""},"value":4000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Right-of-use asset","es":""},"value":519540,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of the hotel","es":""},"value":2400000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Initial lease liability","es":""},"value":865900,"unit":"EUR"}],"result":1253640,"unit":"EUR"}],"references":["REF.IFRS16.100","REF.IFRS16.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000329","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"CALCULATION","context":"V1_QST.IFRS16.000329","tested_point":"QST.IFRS16.000329","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"sale-accounting"},"references":["IFRS 16 §101","IFRS 16 §102","IFRS 16 §100"],"exercise":{"prompt":{"fr":"","en":"Arvelo sells a business building to Capimmo for {sale_price} and leases it back; the IFRS 15 analysis concludes that there is a sale. The fair value of the building, readily determinable, is {fair_value}; its carrying amount is {carrying_amount}. Arvelo uses, as the more readily determinable basis, the difference between the fair value of the consideration and that of the building. The contractual lease payments, payable at the end of each year, have a present value of {pv_contractual_payments}, part of which repays the excess price (case assumption: its present value equals that excess). The proportion of the right retained is measured, as an assumption, by the ratio of the present value of the payments relating to the lease to fair value. Compute the additional financing, the right-of-use asset and the gain recognised.","es":""},"explanation":{"fr":"","en":"The price exceeds fair value: the terms are above market and the excess is accounted for as additional financing provided by the buyer-lessor (IFRS 16, para. 101), measured here on the difference in fair values, the basis taken as more readily determinable (IFRS 16, para. 102): 2,200,000 − 2,000,000 = 200,000. Payments relating to the lease: 900,000 − 200,000 = 700,000. The right-of-use asset is the proportion of the previous carrying amount relating to the right of use retained, and only the gain on the rights transferred is recognised (IFRS 16, para. 100): proportion retained 700,000 / 2,000,000 = 35%; right-of-use asset 1,200,000 × 35% = 420,000; gain (2,000,000 − 1,200,000) × 65% = 520,000. Check: 2,200,000 + 420,000 − 1,200,000 − 700,000 − 200,000 = 520,000.","es":""},"common_error":{"fr":"","en":"Computing the gain on the contractual price (a gain of 1,000,000) instead of fair value.","es":""},"format":"CALCULATION","placeholders":[{"id":"sale_price","value":"2200000","unit":"EUR"},{"id":"fair_value","value":"2000000","unit":"EUR"},{"id":"carrying_amount","value":"1200000","unit":"EUR"},{"id":"pv_contractual_payments","value":"900000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Contractual sale price","es":""},"value":"2200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the building","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the building","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the contractual lease payments","es":""},"value":"900000","unit":"EUR"}],"steps":[{"id":"ADDITIONAL_FINANCING","label":{"fr":"","en":"Additional financing provided by Capimmo","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"RIGHT_OF_USE_ASSET","label":{"fr":"","en":"Right-of-use asset","es":""},"answer":420000,"tolerance":0,"unit":"EUR"},{"id":"GAIN_RECOGNISED","label":{"fr":"","en":"Gain recognised on the rights transferred","es":""},"answer":520000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ADDITIONAL_FINANCING","meaning":{"fr":"","en":"Additional financing provided by Capimmo","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Contractual sale price","es":""},"value":2200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the building","es":""},"value":2000000,"unit":"EUR"}],"result":200000,"unit":"EUR","rationale":{"fr":"","en":"The price exceeds fair value: the terms are above market and the excess is accounted for as additional financing provided by the buyer-lessor (IFRS 16, para. 101), measured here on the difference in fair values, the basis taken as more readily determinable (IFRS 16, para. 102): 2,200,000 − 2,000,000 = 200,000.","es":""}},{"step":"GAIN_RECOGNISED","meaning":{"fr":"","en":"Gain recognised on the rights transferred","es":""},"expression":"a + b - c - (d - e) - e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Contractual sale price","es":""},"value":2200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Right-of-use asset","es":""},"value":420000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Carrying amount of the building","es":""},"value":1200000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Present value of the contractual lease payments","es":""},"value":900000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Additional financing provided by Capimmo","es":""},"value":200000,"unit":"EUR"}],"result":520000,"unit":"EUR"}],"references":["REF.IFRS16.101","REF.IFRS16.102","REF.IFRS16.100"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000330","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000330","tested_point":"QST.IFRS16.000330","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"sale-accounting"},"references":["IFRS 16 §101","IFRS 16 §102"],"exercise":{"prompt":{"fr":"","en":"Lusinor transfers a warehouse to an investor for 850,000 and leases it back at below-market lease payments; the IFRS 15 analysis concludes that there is a sale. The fair value of the warehouse, readily determinable, is 1,000,000, and Lusinor uses the difference in fair values as the more readily determinable basis. How should the difference of 150,000 be treated?","es":""},"explanation":{"fr":"","en":"When the consideration for the sale is not at fair value or the lease payments are not at market rates, the entity makes adjustments to measure the sale proceeds at fair value: below-market terms are accounted for as a prepayment of lease payments (IFRS 16, para. 101). The adjustment is measured on the more readily determinable basis, here the difference in fair values (IFRS 16, para. 102): 1,000,000 − 850,000 = 150,000, treated as lease payments made in advance.","es":""},"common_error":{"fr":"","en":"Reversing the treatments of below-market and above-market terms.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a loss on disposal recognised immediately in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The low price is offset by low lease payments: it is not a loss but a prepayment of lease payments.","es":""}},{"id":"B","text":{"fr":"","en":"As additional financing provided by the investor to Lusinor.","es":""},"correct":false,"feedback":{"fr":"","en":"Additional financing is the reverse case, when terms are above market.","es":""}},{"id":"C","text":{"fr":"","en":"As a prepayment of lease payments, the sale proceeds being brought to fair value.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No treatment: the price agreed between the parties is used as sale proceeds as it stands.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires an adjustment to measure the sale proceeds at fair value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000331","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.TRANSFER_IS_SALE"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000331","tested_point":"QST.IFRS16.000331","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"sale-accounting"},"references":["IFRS 16 §102A"],"exercise":{"prompt":{"fr":"","en":"Calyse carried out a sale and leaseback of a store that qualified as a sale; part of the leaseback payments varies with the store's revenue. A year later, revenue falls and the controller proposes to reduce the lease liability for the now lower variable portion, recognising a gain in profit or loss on the right of use retained. Part of the store is also subject to a partial termination negotiated with the lessor. Which analysis complies with IFRS 16?","es":""},"explanation":{"fr":"","en":"After the commencement date, the seller-lessee applies paragraphs 29 to 35 to the right-of-use asset and 36 to 46 to the lease liability arising from the leaseback. In doing so, it sets the lease payments, or revised lease payments, so that no gain or loss attributable to the retained right of use is recognised; a gain or loss on a partial or full termination of the lease may still be recognised (IFRS 16, para. 102A). The controller's proposal, which creates a gain on the right retained, therefore does not comply.","es":""},"common_error":{"fr":"","en":"Bringing back, through remeasurement of the lease liability, part of the gain on disposal not recognised initially.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is correct: any decrease in variable lease payments gives rise to a gain in profit or loss on the right of use retained.","es":""},"correct":false,"feedback":{"fr":"","en":"This is precisely what the standard prohibits: the payments are determined so that no gain or loss arises on the right retained.","es":""}},{"id":"B","text":{"fr":"","en":"After the commencement date, the seller-lessee no longer applies any subsequent measurement rule: the lease liability remains frozen.","es":""},"correct":false,"feedback":{"fr":"","en":"The subsequent measurement requirements for the right-of-use asset and the lease liability do apply.","es":""}},{"id":"C","text":{"fr":"","en":"Calyse applies the subsequent measurement requirements to the right-of-use asset and the lease liability, determining the lease payments so as to recognise no gain or loss on the right retained, which does not prevent it from recognising the gain or loss on the partial termination.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No gain or loss can be recognised, even on the partial termination, while the leaseback is ongoing.","es":""},"correct":false,"feedback":{"fr":"","en":"The restriction does not cover partial or full termination, whose gain or loss is recognised.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000332","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.NOT_A_SALE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000332","tested_point":"QST.IFRS16.000332","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"not-a-sale"},"references":["IFRS 16 §103"],"exercise":{"prompt":{"fr":"","en":"Torvale transfers a laboratory and leases it back. According to the IFRS 15 analysis provided, the transfer is not a sale. How does Torvale, the seller-lessee, account for the arrangement?","es":""},"explanation":{"fr":"","en":"When the transfer is not a sale under IFRS 15, the seller-lessee continues to recognise the transferred asset and recognises a financial liability equal to the transfer proceeds, applying IFRS 9 (IFRS 16, para. 103). No gain or loss on disposal and no right-of-use asset is recognised.","es":""},"common_error":{"fr":"","en":"Derecognising the asset when the transfer is not a sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It derecognises the laboratory, recognises a gain or loss on disposal and recognises a financial liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Without a sale, the laboratory cannot be derecognised and no gain or loss on disposal arises.","es":""}},{"id":"B","text":{"fr":"","en":"It derecognises the laboratory and recognises a right-of-use asset and a lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"This pattern assumes a sale; here the transfer is not one.","es":""}},{"id":"C","text":{"fr":"","en":"It keeps the laboratory in its statement of financial position and recognises a right-of-use asset against a lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Torvale does keep the laboratory, but the cash received is a financing: a financial liability, not a lease liability.","es":""}},{"id":"D","text":{"fr":"","en":"It continues to recognise the laboratory and recognises a financial liability equal to the transfer proceeds, applying IFRS 9.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000333","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.NOT_A_SALE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000333","tested_point":"QST.IFRS16.000333","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"not-a-sale"},"references":["IFRS 16 §103"],"exercise":{"prompt":{"fr":"","en":"Fidalys bank pays 4,000,000 to a manufacturer to acquire its factory, which the manufacturer immediately leases back. The IFRS 15 analysis concludes that the transfer is not a sale. How does Fidalys, the buyer-lessor, account for the arrangement?","es":""},"explanation":{"fr":"","en":"When the transfer is not a sale, the buyer-lessor does not recognise the transferred asset and recognises a financial asset equal to the transfer proceeds, applying IFRS 9 (IFRS 16, para. 103). For Fidalys, the arrangement is a loan of 4,000,000 to the manufacturer, which keeps the factory.","es":""},"common_error":{"fr":"","en":"Recognising the transferred asset at the buyer-lessor despite the absence of a sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises the factory as an asset and accounts for the leaseback under the lessor accounting requirements.","es":""},"correct":false,"feedback":{"fr":"","en":"This treatment applies where the transfer is a sale.","es":""}},{"id":"B","text":{"fr":"","en":"It does not recognise the factory and recognises a financial asset equal to the transfer proceeds, applying IFRS 9.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It recognises a net investment in the lease of 4,000,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Without a sale, there is no lease to account for at Fidalys: the receivable falls under IFRS 9, not IFRS 16.","es":""}},{"id":"D","text":{"fr":"","en":"It recognises the factory as an asset and a financial liability towards the manufacturer.","es":""},"correct":false,"feedback":{"fr":"","en":"Fidalys does not recognise the factory, and it is the manufacturer that owes Fidalys, not the reverse.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000336","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.NOT_A_SALE","IFRS16.SALE_LEASEBACK.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000336","tested_point":"QST.IFRS16.000336","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"is-it-a-sale"},"references":["IFRS 16 §103","IFRS 16 §99"],"exercise":{"prompt":{"fr":"","en":"Ostréa's year-end is approaching. During the year it transferred its head office (carrying amount 900,000) for 1,500,000 to an investor and leased it back; the IFRS 15 analysis in the file concludes that the transfer is not a sale. The accountant derecognised the building, recognised a gain of 600,000, then recognised a right-of-use asset and a lease liability. Which correction do you propose?","es":""},"explanation":{"fr":"","en":"The IFRS 15 analysis, a datum of the file, concludes that the transfer is not a sale (IFRS 16, para. 99). In that case, the seller-lessee continues to recognise the transferred asset and recognises a financial liability equal to the transfer proceeds, applying IFRS 9 (IFRS 16, para. 103). The building must therefore be reinstated at 900,000, the gain of 600,000, the right-of-use asset and the lease liability reversed, and a financial liability of 1,500,000 recognised.","es":""},"common_error":{"fr":"","en":"Derecognising the asset when the transfer is not a sale.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No correction: the leaseback justifies the right-of-use asset and the lease liability, and the gain has been earned.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the targeted error: the asset was derecognised although the transfer is not a sale.","es":""}},{"id":"B","text":{"fr":"","en":"Reverse the derecognition of the building, the gain, the right-of-use asset and the lease liability, and recognise a financial liability of 1,500,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Keep the derecognition of the building but defer the gain of 600,000 over the lease term.","es":""},"correct":false,"feedback":{"fr":"","en":"The issue is not the timing of the gain: without a sale, there is neither derecognition nor gain.","es":""}},{"id":"D","text":{"fr":"","en":"Keep the building as an asset while retaining the right-of-use asset and the lease liability, with no financial liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Without a sale, there is no leaseback for Ostréa to account for: the cash received must be a financial liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000337","standard_id":"IFRS16","concept_ids":["IFRS16.SALE_LEASEBACK.NOT_A_SALE"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000337","tested_point":"QST.IFRS16.000337","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000017","section_id":"not-a-sale"},"references":["IFRS 16 §103"],"exercise":{"prompt":{"fr":"","en":"Néphral transfers an automated warehouse (carrying amount 1,400,000) to Bailor for 2,000,000 and leases it back. The IFRS 15 analysis provided to both parties concludes that the transfer is not a sale. Immediately after the transaction, which presentation of the two statements of financial position is correct?","es":""},"explanation":{"fr":"","en":"When the transfer is not a sale, the seller-lessee continues to recognise the asset and recognises a financial liability equal to the transfer proceeds; the buyer-lessor does not recognise the transferred asset and recognises a financial asset equal to the transfer proceeds, both applying IFRS 9 (IFRS 16, para. 103). Néphral therefore presents the warehouse at 1,400,000 and a financial liability of 2,000,000; Bailor a financial asset of 2,000,000.","es":""},"common_error":{"fr":"","en":"Measuring the financial liability at the carrying amount of the transferred asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Néphral: right-of-use asset and lease liability, warehouse derecognised; Bailor: warehouse of 2,000,000 leased out.","es":""},"correct":false,"feedback":{"fr":"","en":"This presentation assumes a sale, which the IFRS 15 analysis rules out.","es":""}},{"id":"B","text":{"fr":"","en":"Néphral: warehouse derecognised and financial liability of 2,000,000; Bailor: financial asset of 2,000,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Néphral cannot derecognise the warehouse: the transfer is not a sale.","es":""}},{"id":"C","text":{"fr":"","en":"Néphral: warehouse of 1,400,000 and financial liability of 2,000,000; Bailor: financial asset of 2,000,000, with no warehouse.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Néphral: warehouse of 1,400,000 and financial liability of 1,400,000; Bailor: warehouse of 2,000,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The financial liability equals the transfer proceeds (2,000,000), and Bailor does not recognise the warehouse.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000338","standard_id":"IFRS16","concept_ids":["IFRS16.TRANSITION.LESSEE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000338","tested_point":"QST.IFRS16.000338","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000018","section_id":"transition-methods"},"references":["IFRS 16 §C5","IFRS 16 §C7","IFRS 16 §C2"],"exercise":{"prompt":{"fr":"","en":"Meridia, a lessee, applies IFRS 16 for the first time for the annual period beginning on 1 January 20X1 and presents a comparative period 20X0. It chooses the retrospective method with the cumulative effect of initial application recognised. Which treatment is correct?","es":""},"explanation":{"fr":"","en":"The lessee applies the standard either retrospectively to each prior reporting period presented, or retrospectively with the cumulative effect recognised at the date of initial application (IFRS 16, para. C5). Under this second method, comparative information is not restated and the cumulative effect is recognised as an adjustment to the opening balance of retained earnings, or another component of equity, at the date of initial application (IFRS 16, para. C7). That date is the beginning of the annual period of first application, 1 January 20X1 (IFRS 16, para. C2).","es":""},"common_error":{"fr":"","en":"Restating comparatives when applying the cumulative effect retrospective method.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It restates 20X0 as if IFRS 16 had always been applied and charges the cumulative effect to equity at 1 January 20X0.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the full retrospective method, not the one chosen by Meridia: with the cumulative effect method, comparatives are not restated.","es":""}},{"id":"B","text":{"fr":"","en":"It recognises the cumulative effect of initial application in profit or loss for 20X1.","es":""},"correct":false,"feedback":{"fr":"","en":"The cumulative effect is not recognised in profit or loss but in opening equity.","es":""}},{"id":"C","text":{"fr":"","en":"It does not restate 20X0 and recognises the cumulative effect as an adjustment to the opening balance of retained earnings (or another component of equity) at 1 January 20X1.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It does not restate 20X0 and recognises the cumulative effect in retained earnings at 31 December 20X1.","es":""},"correct":false,"feedback":{"fr":"","en":"The date of initial application is the beginning of the annual period, not its end.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000339","standard_id":"IFRS16","concept_ids":["IFRS16.TRANSITION.LESSEE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS16.000339","tested_point":"QST.IFRS16.000339","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000018","section_id":"transition-methods"},"references":["IFRS 16 §C3","IFRS 16 §C10","IFRS 16 §C8"],"exercise":{"prompt":{"fr":"","en":"The Sorelia group, a lessee, applies IFRS 16 under the retrospective method with the cumulative effect at the date of initial application, for a portfolio of contracts previously classified as operating leases. Which of the following are practical expedients that the standard makes available to it?","es":""},"explanation":{"fr":"","en":"The lessee is not required to reassess whether a contract is, or contains, a lease and may apply the standard to contracts identified under IAS 17 and IFRIC 4 (IFRS 16, para. C3). For former operating leases, it may in particular apply a single rate to a portfolio of similar leases, account as short-term leases for those ending within 12 months and exclude initial direct costs (IFRS 16, para. C10). However, a lease liability is recognised, measured at the incremental borrowing rate at the date of initial application and not at the original commencement date (IFRS 16, para. C8). A, C, D and F are correct.","es":""},"common_error":{"fr":"","en":"Discounting the remaining payments at the original rate of the lease.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Not reassessing whether existing contracts are, or contain, a lease, applying the standard to contracts identified as leases under IAS 17 and IFRIC 4.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Recognising no lease liability for former operating leases still running.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: former operating leases give rise to a lease liability equal to the present value of the remaining payments.","es":""}},{"id":"C","text":{"fr":"","en":"Applying a single discount rate to a portfolio of leases with similar characteristics.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Excluding initial direct costs from the measurement of the right-of-use asset at the date of initial application.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Discounting the remaining payments at the lessee's incremental borrowing rate at the original commencement date of each lease.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: discounting uses the incremental borrowing rate at the date of initial application.","es":""}},{"id":"F","text":{"fr":"","en":"Accounting as short-term leases for those ending within 12 months of the date of initial application.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS16.000340","standard_id":"IFRS16","concept_ids":["IFRS16.TRANSITION.LESSEE"],"dimension":"APPLICATION","context":"V1_QST.IFRS16.000340","tested_point":"QST.IFRS16.000340","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IFRS16","lesson_id":"LS.IFRS16.000018","section_id":"transition-methods"},"references":["IFRS 16 §C8","IFRS 16 §C7","IFRS 16 §C2"],"exercise":{"prompt":{"fr":"","en":"Quintal applies IFRS 16 from the annual period beginning on 1 January 20X1, under the cumulative effect retrospective method. A commercial lease previously classified as an operating lease still has 3 annual payments of 100,000, payable at the end of each year. On signing, Quintal paid rent in advance, recognised as an asset at 15,000 at 31 December 20X0. Its incremental borrowing rate is 5% at 1 January 20X1; it was 4% at the original commencement date. For this lease, Quintal elects to measure the right-of-use asset at the amount of the lease liability adjusted by the prepaid lease payments. Which amounts and presentation do you adopt?","es":""},"explanation":{"fr":"","en":"The date of initial application is 1 January 20X1, the beginning of the annual period of first application (IFRS 16, para. C2). For a former operating lease, the lease liability is the present value of the remaining payments discounted at the incremental borrowing rate at that date, and the right-of-use asset may be measured at the amount of the lease liability adjusted by prepaid lease payments (IFRS 16, para. C8). Liability: 95,238 + 90,703 + 86,384 = 272,325 (cash flows of 100,000 discounted at 5% over 1, 2 and 3 years, rounded to the unit). Right-of-use asset: 272,325 + 15,000 = 287,325. Under this method, comparatives are not restated (IFRS 16, para. C7).","es":""},"common_error":{"fr":"","en":"Restating comparatives when applying the cumulative effect retrospective method.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Lease liability 272,325; right-of-use asset 272,325; 20X0 comparatives not restated.","es":""},"correct":false,"feedback":{"fr":"","en":"The prepaid rent of 15,000 must be added to the right-of-use asset.","es":""}},{"id":"B","text":{"fr":"","en":"Lease liability 277,509; right-of-use asset 292,509; 20X0 comparatives not restated.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate to use is the incremental borrowing rate at the date of initial application (5%), not the one at the original commencement date (4%).","es":""}},{"id":"C","text":{"fr":"","en":"Lease liability 272,325; right-of-use asset 287,325; 20X0 comparatives not restated.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Lease liability 272,325; right-of-use asset 287,325; 20X0 comparatives restated.","es":""},"correct":false,"feedback":{"fr":"","en":"The amounts are right, but the cumulative effect method excludes restating comparatives.","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IFRS16.000001":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","LX.IFRS16.000002":"Objective and scope of IFRS 16 — Intangible assets: exclusion, then an option","LX.IFRS16.000003":"Objective and scope of IFRS 16 — Points to watch","LX.IFRS16.000004":"Objective and scope of IFRS 16 — How to apply it: three questions in order","LX.IFRS16.000005":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","LX.IFRS16.000006":"The two lessee exemptions: short-term and low-value leases — Numerical example: a crane leased for ten months with a rent-free period","LX.IFRS16.000007":"The two lessee exemptions: short-term and low-value leases — Numerical example: a crane leased for ten months with a rent-free period","LX.IFRS16.000008":"The two lessee exemptions: short-term and low-value leases — The low-value asset","LX.IFRS16.000009":"The two lessee exemptions: short-term and low-value leases — Points to watch","LX.IFRS16.000010":"The two lessee exemptions: short-term and low-value leases — Journal entries for the exempt lease","LX.IFRS16.000011":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","LX.IFRS16.000012":"The two lessee exemptions: short-term and low-value leases — How to apply it: a four-question grid","LX.IFRS16.000013":"The two lessee exemptions: short-term and low-value leases — The short-term lease","LX.IFRS16.000014":"The vocabulary of IFRS 16 — Lessor terms and the lives of the asset","LX.IFRS16.000015":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","LX.IFRS16.000016":"The vocabulary of IFRS 16 — Lease payments, lease incentives and rates","LX.IFRS16.000017":"The vocabulary of IFRS 16 — Lease payments, lease incentives and rates","LX.IFRS16.000018":"The vocabulary of IFRS 16 — Points to watch","LX.IFRS16.000019":"Does a contract contain a lease? — First question: is there an identified asset?","LX.IFRS16.000020":"Does a contract contain a lease? — Areas of judgement: predetermined decisions and asset designed by the customer","LX.IFRS16.000021":"Does a contract contain a lease? — Third question: who directs the use?","LX.IFRS16.000022":"Does a contract contain a lease? — How to apply it? A four-question reasoning","LX.IFRS16.000023":"Does a contract contain a lease? — The supplier's substitution right","LX.IFRS16.000024":"Does a contract contain a lease? — Second question: substantially all of the economic benefits","LX.IFRS16.000025":"Does a contract contain a lease? — Points of attention","LX.IFRS16.000026":"Does a contract contain a lease? — The supplier's substitution right","LX.IFRS16.000027":"Does a contract contain a lease? — First question: is there an identified asset?","LX.IFRS16.000028":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","LX.IFRS16.000029":"The unit of account: portfolio, combination, components — For the lessee: allocating the consideration","LX.IFRS16.000030":"The unit of account: portfolio, combination, components — Numeric example: a van with its maintenance","LX.IFRS16.000031":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","LX.IFRS16.000032":"The unit of account: portfolio, combination, components — Combining contracts","LX.IFRS16.000033":"The unit of account: portfolio, combination, components — The practical expedient: not separating","LX.IFRS16.000034":"The unit of account: portfolio, combination, components — Points of attention","LX.IFRS16.000035":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","LX.IFRS16.000036":"The lease term — The rule: non-cancellable period and options","LX.IFRS16.000037":"The lease term — After the commencement date: reassess or revise?","LX.IFRS16.000038":"The lease term — How to apply it? Four steps","LX.IFRS16.000039":"The lease term — How far is the contract enforceable?","LX.IFRS16.000040":"The lease term — Numeric example: what the judgement on the term is worth","LX.IFRS16.000041":"The lease term — Points of attention","LX.IFRS16.000042":"The lease term — Reasonable certainty: look for the economic incentive","LX.IFRS16.000043":"The lease term — Judgement: improvements, importance of the asset and documentation","LX.IFRS16.000044":"The lease term — Reasonable certainty: look for the economic incentive","LX.IFRS16.000045":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Transvia: the lease liability at the commencement date","LX.IFRS16.000046":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Transvia: the lease liability at the commencement date","LX.IFRS16.000047":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","LX.IFRS16.000048":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","LX.IFRS16.000049":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — The entry at the commencement date","LX.IFRS16.000050":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","LX.IFRS16.000051":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","LX.IFRS16.000052":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Common mistakes","LX.IFRS16.000053":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Common mistakes","LX.IFRS16.000054":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — 'In-substance fixed' payments","LX.IFRS16.000055":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — The discount rate","LX.IFRS16.000056":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — The recognition rule: an asset and a liability at the commencement date","LX.IFRS16.000057":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Indexed payments and variable payments: the boundary","LX.IFRS16.000058":"Lessee at the commencement date (2): the cost of the right-of-use asset — Transvia: the cost of the right-of-use asset","LX.IFRS16.000059":"Lessee at the commencement date (2): the cost of the right-of-use asset — Transvia: the cost of the right-of-use asset","LX.IFRS16.000060":"Lessee at the commencement date (2): the cost of the right-of-use asset — Transvia: the cost of the right-of-use asset","LX.IFRS16.000061":"Lessee at the commencement date (2): the cost of the right-of-use asset — The full entry at the commencement date","LX.IFRS16.000062":"Lessee at the commencement date (2): the cost of the right-of-use asset — The full entry at the commencement date","LX.IFRS16.000063":"Lessee at the commencement date (2): the cost of the right-of-use asset — The full entry at the commencement date","LX.IFRS16.000064":"Lessee at the commencement date (2): the cost of the right-of-use asset — Common mistakes","LX.IFRS16.000065":"Lessee at the commencement date (2): the cost of the right-of-use asset — Restoration: a provision, and sometimes inventories","LX.IFRS16.000066":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","LX.IFRS16.000067":"Lessee at the commencement date (2): the cost of the right-of-use asset — The lessee involved in building the asset","LX.IFRS16.000068":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","LX.IFRS16.000069":"Lessee after the commencement date: lease liability and right-of-use asset — Transvia: 5-year schedule and carrying amount of the right-of-use asset","LX.IFRS16.000070":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","LX.IFRS16.000071":"Lessee after the commencement date: lease liability and right-of-use asset — Over what period to depreciate?","LX.IFRS16.000072":"Lessee after the commencement date: lease liability and right-of-use asset — Over what period to depreciate?","LX.IFRS16.000073":"Lessee after the commencement date: lease liability and right-of-use asset — What goes to profit or loss","LX.IFRS16.000074":"Lessee after the commencement date: lease liability and right-of-use asset — Year 1 entries","LX.IFRS16.000075":"Lessee after the commencement date: lease liability and right-of-use asset — Year 1 entries","LX.IFRS16.000076":"Lessee after the commencement date: lease liability and right-of-use asset — What goes to profit or loss","LX.IFRS16.000077":"Lessee after the commencement date: lease liability and right-of-use asset — Common mistakes","LX.IFRS16.000078":"Lessee after the commencement date: lease liability and right-of-use asset — Impairment and other models: IAS 36, IAS 40, IAS 16","LX.IFRS16.000079":"Lessee after the commencement date: lease liability and right-of-use asset — What goes to profit or loss","LX.IFRS16.000080":"Lessee after the commencement date: lease liability and right-of-use asset — Judgement: useful life, depreciation method, indications of impairment","LX.IFRS16.000081":"Lessee after the commencement date: lease liability and right-of-use asset — Over what period to depreciate?","LX.IFRS16.000082":"Lessee after the commencement date: lease liability and right-of-use asset — Why the expense is heavier at the start of the lease","LX.IFRS16.000083":"Remeasuring the lease liability: revised or unchanged discount rate — Numeric example: Transvia at the end of year 2","LX.IFRS16.000084":"Remeasuring the lease liability: revised or unchanged discount rate — Revised rate: change in lease term or in the assessment of a purchase option","LX.IFRS16.000085":"Remeasuring the lease liability: revised or unchanged discount rate — Unchanged rate: residual value guarantee, index or rate","LX.IFRS16.000086":"Remeasuring the lease liability: revised or unchanged discount rate — Unchanged rate: residual value guarantee, index or rate","LX.IFRS16.000087":"Remeasuring the lease liability: revised or unchanged discount rate — The entries: increase, decrease and decrease beyond zero","LX.IFRS16.000088":"Remeasuring the lease liability: revised or unchanged discount rate — The entries: increase, decrease and decrease beyond zero","LX.IFRS16.000089":"Remeasuring the lease liability: revised or unchanged discount rate — The five-step method","LX.IFRS16.000090":"Remeasuring the lease liability: revised or unchanged discount rate — Common mistakes","LX.IFRS16.000091":"Remeasuring the lease liability: revised or unchanged discount rate — The basic rule: the difference goes to the right-of-use asset","LX.IFRS16.000092":"Remeasuring the lease liability: revised or unchanged discount rate — Professional judgment: when does the adjustment 'take effect'?","LX.IFRS16.000093":"Remeasuring the lease liability: revised or unchanged discount rate — Unchanged rate: residual value guarantee, index or rate","LX.IFRS16.000094":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Numeric example: Cartessia's offices","LX.IFRS16.000095":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — All other modifications: adjustment to the right-of-use asset","LX.IFRS16.000096":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — All other modifications: adjustment to the right-of-use asset","LX.IFRS16.000097":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — First test: is the modification a separate lease?","LX.IFRS16.000098":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Cartessia's entries","LX.IFRS16.000099":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Cartessia's entries","LX.IFRS16.000100":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — The decision tree","LX.IFRS16.000101":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Professional judgment: the 'stand-alone price adjusted for the circumstances'","LX.IFRS16.000102":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Common mistakes","LX.IFRS16.000103":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Modification that is not a separate lease: recalculate everything at the effective date","LX.IFRS16.000104":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Special case 2: Covid-19-related rent concessions (historical measure)","LX.IFRS16.000105":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Special case 1: interest rate benchmark (IBOR) reform","LX.IFRS16.000106":"Lessee: presentation in the financial statements and disclosures — In the statement of cash flows: three destinations","LX.IFRS16.000107":"Lessee: presentation in the financial statements and disclosures — The method: from the trial balance to the notes","LX.IFRS16.000108":"Lessee: presentation in the financial statements and disclosures — Numeric example: Transvia's financial statements at the end of year 1","LX.IFRS16.000109":"Lessee: presentation in the financial statements and disclosures — Common mistakes","LX.IFRS16.000110":"Lessee: presentation in the financial statements and disclosures — Quantitative disclosures: the para. 53 table and its complements","LX.IFRS16.000111":"Lessee: presentation in the financial statements and disclosures — Professional judgment: which additional information?","LX.IFRS16.000112":"Lessor: finance lease or operating lease? — Finance lease situations and indicators","LX.IFRS16.000113":"Lessor: finance lease or operating lease? — Land and buildings in a single lease","LX.IFRS16.000114":"Lessor: finance lease or operating lease? — Finance lease situations and indicators","LX.IFRS16.000115":"Lessor: finance lease or operating lease? — When to classify? At the inception date, once and for all (almost)","LX.IFRS16.000116":"Lessor: finance lease or operating lease? — Numeric example: the 'Métalor' press, a mixed lease and a sublease","LX.IFRS16.000117":"Lessor: finance lease or operating lease? — Subleases: look at the right-of-use asset, not the building","LX.IFRS16.000118":"Lessor: finance lease or operating lease? — Finance lease situations and indicators","LX.IFRS16.000119":"Lessor: finance lease or operating lease? — Points of attention","LX.IFRS16.000120":"Lessor: finance lease or operating lease? — Subleases: look at the right-of-use asset, not the building","LX.IFRS16.000121":"Lessor: finance lease or operating lease? — Finance lease situations and indicators","LX.IFRS16.000122":"Lessor: finance leases — The net investment at the commencement date","LX.IFRS16.000123":"Lessor: finance leases — After the commencement date: finance income at a constant rate","LX.IFRS16.000124":"Lessor: finance leases — Manufacturer or dealer lessors","LX.IFRS16.000125":"Lessor: finance leases — The entries of Locabail and Robotek","LX.IFRS16.000126":"Lessor: finance leases — The entries of Locabail and Robotek","LX.IFRS16.000127":"Lessor: finance leases — Points of attention","LX.IFRS16.000128":"Lessor: finance leases — The net investment at the commencement date","LX.IFRS16.000129":"Lessor: finance leases — Numeric example: 'Locabail' and the manufacturer variant 'Robotek'","LX.IFRS16.000130":"Lessor: finance leases — Manufacturer or dealer lessors","LX.IFRS16.000131":"Lessor: finance leases — IFRS 9, unguaranteed residual value and IFRS 5","LX.IFRS16.000132":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","LX.IFRS16.000133":"Lessor: operating leases and lease modifications — Initial direct costs, depreciation, impairment and manufacturers","LX.IFRS16.000134":"Lessor: operating leases and lease modifications — Modifying an operating lease","LX.IFRS16.000135":"Lessor: operating leases and lease modifications — The 'Halles Nord' entries","LX.IFRS16.000136":"Lessor: operating leases and lease modifications — Initial direct costs, depreciation, impairment and manufacturers","LX.IFRS16.000137":"Lessor: operating leases and lease modifications — Modifying a finance lease","LX.IFRS16.000138":"Lessor: operating leases and lease modifications — Numeric example: the 'Halles Nord' retail unit","LX.IFRS16.000139":"Lessor: operating leases and lease modifications — Modifying a finance lease","LX.IFRS16.000140":"Lessor: presentation and disclosure — How to prepare the lessor's note","LX.IFRS16.000141":"Lessor: presentation and disclosure — Numeric example: Locabail's note at the end of year 1","LX.IFRS16.000142":"Lessor: presentation and disclosure — Disclosures specific to finance leases","LX.IFRS16.000143":"Lessor: presentation and disclosure — Points of attention","LX.IFRS16.000144":"Sale and leaseback transactions — Step 2: the transfer is a sale — a \"partial\" sale","LX.IFRS16.000145":"Sale and leaseback transactions — Numeric example: the Logipôle warehouse","LX.IFRS16.000146":"Sale and leaseback transactions — Off-market terms","LX.IFRS16.000147":"Sale and leaseback transactions — Step 2: the transfer is a sale — a \"partial\" sale","LX.IFRS16.000148":"Sale and leaseback transactions — Logipôle's journal entries","LX.IFRS16.000149":"Sale and leaseback transactions — Logipôle's journal entries","LX.IFRS16.000150":"Sale and leaseback transactions — When the transfer is not a sale","LX.IFRS16.000151":"Sale and leaseback transactions — Step 1: is the transfer a sale?","LX.IFRS16.000152":"Sale and leaseback transactions — After the commencement date","LX.IFRS16.000153":"Sale and leaseback transactions — Professional judgment: repurchase options and transfer of control","LX.IFRS16.000154":"Sale and leaseback transactions — Points of attention","LX.IFRS16.000155":"Sale and leaseback transactions — Step 1: is the transfer a sale?","LX.IFRS16.000156":"Transition for lessees (key points) — The lessee's two transition methods","LX.IFRS16.000157":"Transition for lessees (key points) — Method (b): measuring former operating leases","LX.IFRS16.000158":"Transition for lessees (key points) — The practical expedients","LX.IFRS16.000159":"Transition for lessees (key points) — The lessee's two transition methods","LX.IFRS16.000160":"Lessor: presentation and disclosure — Numeric example: Locabail's note at the end of year 1","LX.IFRS16.000161":"Transition for lessees (key points) — Numeric example: a former operating lease","LX.IFRS16.000162":"Lessor: finance lease or operating lease? — Subleases: look at the right-of-use asset, not the building","QST.IFRS16.000001":"Objective and scope of IFRS 16 — The objective: relevant and faithful information","QST.IFRS16.000002":"Objective and scope of IFRS 16 — The objective: relevant and faithful information","QST.IFRS16.000003":"Objective and scope of IFRS 16 — The objective: relevant and faithful information","QST.IFRS16.000004":"Objective and scope of IFRS 16 — The objective: relevant and faithful information","QST.IFRS16.000005":"Objective and scope of IFRS 16 — The objective: relevant and faithful information","QST.IFRS16.000006":"Objective and scope of IFRS 16 — The objective: relevant and faithful information","QST.IFRS16.000007":"Objective and scope of IFRS 16 — The objective: relevant and faithful information","QST.IFRS16.000008":"Objective and scope of IFRS 16 — The objective: relevant and faithful information","QST.IFRS16.000009":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000010":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000011":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000012":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000013":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000014":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000015":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000016":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000017":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000018":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000019":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000020":"Objective and scope of IFRS 16 — The scope: all leases, except five categories","QST.IFRS16.000021":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000022":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000023":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000024":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000025":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000026":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000027":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000028":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000029":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000030":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000031":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000032":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000033":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000034":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000035":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000036":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000037":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000038":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000039":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000040":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000041":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000042":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000043":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000044":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000045":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000046":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000047":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000048":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000049":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000050":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000051":"The vocabulary of IFRS 16 — Two dates not to confuse: inception and commencement","QST.IFRS16.000052":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000053":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000054":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000055":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000056":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000057":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000058":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000059":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000060":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000061":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000062":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000063":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000064":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000065":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000066":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000067":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000068":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000069":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000070":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000073":"Does a contract contain a lease? — The rule: controlling the use of an identified asset","QST.IFRS16.000074":"The unit of account: portfolio, combination, components — The portfolio approach: a controlled simplification","QST.IFRS16.000075":"The unit of account: portfolio, combination, components — The portfolio approach: a controlled simplification","QST.IFRS16.000076":"The unit of account: portfolio, combination, components — The portfolio approach: a controlled simplification","QST.IFRS16.000077":"The unit of account: portfolio, combination, components — The portfolio approach: a controlled simplification","QST.IFRS16.000078":"The unit of account: portfolio, combination, components — The portfolio approach: a controlled simplification","QST.IFRS16.000079":"The unit of account: portfolio, combination, components — The portfolio approach: a controlled simplification","QST.IFRS16.000080":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000081":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000082":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000083":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000084":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000085":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000086":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000087":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000088":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000089":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000090":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000091":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000092":"The unit of account: portfolio, combination, components — Separating lease and non-lease components","QST.IFRS16.000093":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000094":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000095":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000096":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000097":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000098":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000099":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000100":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000101":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000102":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000103":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000104":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000105":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000107":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000108":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000110":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000111":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — The recognition rule: an asset and a liability at the commencement date","QST.IFRS16.000112":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — The recognition rule: an asset and a liability at the commencement date","QST.IFRS16.000113":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — The recognition rule: an asset and a liability at the commencement date","QST.IFRS16.000114":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — The recognition rule: an asset and a liability at the commencement date","QST.IFRS16.000115":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000116":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000117":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — The recognition rule: an asset and a liability at the commencement date","QST.IFRS16.000123":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000124":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000125":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000126":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000127":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000128":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000129":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000130":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000131":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000132":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000133":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000134":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000135":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000136":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000137":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","QST.IFRS16.000138":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","QST.IFRS16.000139":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000140":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","QST.IFRS16.000141":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","QST.IFRS16.000142":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","QST.IFRS16.000143":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","QST.IFRS16.000144":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","QST.IFRS16.000145":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000146":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000149":"Lessee at the commencement date (2): the cost of the right-of-use asset — The four components of cost","QST.IFRS16.000150":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000151":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000152":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000153":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000154":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000155":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000156":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000157":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000158":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000159":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000160":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000161":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000162":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000163":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000166":"Lessee after the commencement date: lease liability and right-of-use asset — The right-of-use asset: the cost model","QST.IFRS16.000167":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000168":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000169":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000170":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000171":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000172":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000173":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000174":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000177":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000178":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000179":"Lessee after the commencement date: lease liability and right-of-use asset — The lease liability: interest at a constant rate, payments reducing it","QST.IFRS16.000180":"Remeasuring the lease liability: revised or unchanged discount rate — The basic rule: the difference goes to the right-of-use asset","QST.IFRS16.000181":"Remeasuring the lease liability: revised or unchanged discount rate — The basic rule: the difference goes to the right-of-use asset","QST.IFRS16.000182":"Remeasuring the lease liability: revised or unchanged discount rate — The basic rule: the difference goes to the right-of-use asset","QST.IFRS16.000183":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000184":"The lease term — The rule: non-cancellable period and options","QST.IFRS16.000185":"Remeasuring the lease liability: revised or unchanged discount rate — The basic rule: the difference goes to the right-of-use asset","QST.IFRS16.000186":"Remeasuring the lease liability: revised or unchanged discount rate — The basic rule: the difference goes to the right-of-use asset","QST.IFRS16.000190":"Remeasuring the lease liability: revised or unchanged discount rate — The basic rule: the difference goes to the right-of-use asset","QST.IFRS16.000191":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — First test: is the modification a separate lease?","QST.IFRS16.000192":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — First test: is the modification a separate lease?","QST.IFRS16.000193":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — First test: is the modification a separate lease?","QST.IFRS16.000194":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — First test: is the modification a separate lease?","QST.IFRS16.000195":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — First test: is the modification a separate lease?","QST.IFRS16.000196":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — First test: is the modification a separate lease?","QST.IFRS16.000200":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Special case 2: Covid-19-related rent concessions (historical measure)","QST.IFRS16.000201":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Special case 2: Covid-19-related rent concessions (historical measure)","QST.IFRS16.000202":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Special case 2: Covid-19-related rent concessions (historical measure)","QST.IFRS16.000203":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000204":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000205":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000206":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000207":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000208":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000209":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000210":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000211":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000212":"Lessee: presentation in the financial statements and disclosures — In the statement of financial position: show right-of-use assets and lease liabilities separately","QST.IFRS16.000213":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000214":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000215":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000216":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000217":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000218":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000219":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000220":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000221":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000222":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000225":"Lessee: presentation in the financial statements and disclosures — The notes: one objective, a single note, tables","QST.IFRS16.000226":"Lease modifications for the lessee, IBOR reform and Covid-19 rent concessions — Special case 2: Covid-19-related rent concessions (historical measure)","QST.IFRS16.000228":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000229":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000230":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000231":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000232":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000233":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000234":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000235":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000236":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000237":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000238":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000239":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000240":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000241":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000242":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000243":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000244":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000247":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000248":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000249":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000250":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000251":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000252":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000255":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000256":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000257":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000259":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000260":"Lessor: finance leases — After the commencement date: finance income at a constant rate","QST.IFRS16.000261":"Lessor: finance leases — After the commencement date: finance income at a constant rate","QST.IFRS16.000262":"Lessor: finance leases — After the commencement date: finance income at a constant rate","QST.IFRS16.000265":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000266":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000267":"Lessor: finance leases — After the commencement date: finance income at a constant rate","QST.IFRS16.000268":"Lessor: finance leases — After the commencement date: finance income at a constant rate","QST.IFRS16.000269":"Lessor: finance leases — After the commencement date: finance income at a constant rate","QST.IFRS16.000270":"Lessor: operating leases and lease modifications — Modifying a finance lease","QST.IFRS16.000271":"Lessor: operating leases and lease modifications — Modifying a finance lease","QST.IFRS16.000272":"Lessor: operating leases and lease modifications — Modifying a finance lease","QST.IFRS16.000273":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000274":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000275":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000276":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000277":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000280":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000281":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000282":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000283":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000284":"Lessor: operating leases and lease modifications — The rule: straight-line income, unless a more representative basis exists","QST.IFRS16.000285":"Lessor: operating leases and lease modifications — Modifying an operating lease","QST.IFRS16.000286":"Lessor: operating leases and lease modifications — Modifying an operating lease","QST.IFRS16.000287":"Lessor: operating leases and lease modifications — Modifying an operating lease","QST.IFRS16.000288":"Lessor: operating leases and lease modifications — Modifying an operating lease","QST.IFRS16.000289":"Lessor: operating leases and lease modifications — Modifying an operating lease","QST.IFRS16.000290":"Lessor: operating leases and lease modifications — Modifying an operating lease","QST.IFRS16.000291":"Lessor: presentation and disclosure — The presentation rule in the statement of financial position","QST.IFRS16.000292":"Lessor: presentation and disclosure — The presentation rule in the statement of financial position","QST.IFRS16.000293":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000294":"Lessor: presentation and disclosure — The presentation rule in the statement of financial position","QST.IFRS16.000295":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000296":"Lessor: finance leases — The net investment at the commencement date","QST.IFRS16.000297":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000298":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000299":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000300":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000301":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000302":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000303":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000304":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000305":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000306":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000307":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000308":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000309":"Lessor: presentation and disclosure — The disclosure objective","QST.IFRS16.000310":"Lessor: finance lease or operating lease? — Subleases: look at the right-of-use asset, not the building","QST.IFRS16.000311":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000312":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000313":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000314":"The two lessee exemptions: short-term and low-value leases — The rule: what the exemption removes and what it requires","QST.IFRS16.000315":"Lessor: finance lease or operating lease? — The rule: substance, risks and rewards","QST.IFRS16.000316":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000317":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000318":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000319":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000320":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000321":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000322":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000323":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000324":"Sale and leaseback transactions — Step 2: the transfer is a sale — a \"partial\" sale","QST.IFRS16.000325":"Sale and leaseback transactions — Step 2: the transfer is a sale — a \"partial\" sale","QST.IFRS16.000326":"Lessee at the commencement date (1): recognising the lease and measuring the lease liability — Which payments enter the lease liability?","QST.IFRS16.000329":"Sale and leaseback transactions — Step 2: the transfer is a sale — a \"partial\" sale","QST.IFRS16.000330":"Sale and leaseback transactions — Step 2: the transfer is a sale — a \"partial\" sale","QST.IFRS16.000331":"Sale and leaseback transactions — Step 2: the transfer is a sale — a \"partial\" sale","QST.IFRS16.000332":"Sale and leaseback transactions — When the transfer is not a sale","QST.IFRS16.000333":"Sale and leaseback transactions — When the transfer is not a sale","QST.IFRS16.000336":"Sale and leaseback transactions — Step 1: is the transfer a sale?","QST.IFRS16.000337":"Sale and leaseback transactions — When the transfer is not a sale","QST.IFRS16.000338":"Transition for lessees (key points) — The lessee's two transition methods","QST.IFRS16.000339":"Transition for lessees (key points) — The lessee's two transition methods","QST.IFRS16.000340":"Transition for lessees (key points) — The lessee's two transition methods"}}