CERTYNEX IFRS ACADEMY

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?

The proposal is acceptable: the option to apply IFRS 16 covers all intangible assets, films included.

Neither contract falls within IFRS 16, because the film industry is excluded from the standard.

The room falls within IFRS 16; the rights to the film are excluded and the option is not available for them.

The rights to the film must be accounted for under IFRS 16; only the room may be excluded by option.