CERTYNEX IFRS ACADEMY

Ardelis applies IFRS 16 to its leases. What must it rely on to apply the standard to a given contract?

On the legal title of the contract only, which by itself determines the accounting treatment.

On the treatment adopted by the counterparty in its own financial statements.

On the financial terms of the contract only, excluding facts and circumstances.

On the terms and conditions of the contract and on all relevant facts and circumstances.