CERTYNEX IFRS ACADEMY

In Saphir's draft statement of profit or loss, a Lease expenses line of 260,000 combines 205,000 of depreciation of right-of-use assets and 55,000 of interest on lease liabilities. The CFO argues that this presentation is clearer. What correction does the auditor request?

None, provided the breakdown of the 260,000 is given in the notes.

Present separately the 55,000 of interest and the 205,000 of depreciation.

Present the 260,000 as finance costs, since they arise from a lease liability.

Replace the 260,000 with the amount of lease payments made during the year.