CERTYNEX IFRS ACADEMY

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?

Without a calendar duration, the contract cannot contain a lease.

The period may be expressed as an amount of use, here the number of parts produced.

The period is deemed equal to the entire useful life of the press.

A twelve-month period is used by default when the contract sets no duration.