CERTYNEX IFRS ACADEMY

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?

None: IFRS 16 must be applied contract by contract.

Quarnel reasonably expects an effect that does not differ materially from applying it contract by contract.

All the leases were signed on the same day with the same lessor.

The leases represent less than 5% of the total assets of Quarnel.