CERTYNEX IFRS ACADEMY

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.

Neither, because agricultural activity is entirely excluded from IFRS 16.

Both, because Verdal controls the use of the cows as well as that of the barn.

The barn falls within IFRS 16; the lease of the herd is excluded from it.

The herd falls within IFRS 16; the barn is excluded because it is used for biological assets.