CERTYNEX IFRS ACADEMY

Dunval, a lessee, leases vehicles with a maintenance package and premises with a cleaning service. It elects the practical expedient not to separate components for the vehicles class, but not for the premises class. What is the effect of these elections?

The election made for the vehicles automatically applies to all classes of assets of Dunval.

For both the vehicles and the premises, the services are excluded from the lease payments.

Vehicle maintenance is part of the lease component; the cleaning of the premises follows other Standards.

For the premises, the cleaning is also part of the lease component, the election following the largest class.