CERTYNEX IFRS ACADEMY

Varenne Logistique leases out part of its refrigerated trucks under operating leases and uses identical trucks itself. How does it determine the depreciation of the leased trucks?

It does not depreciate them: the lessee uses them and bears their wear and tear.

It must depreciate them over the lease term only, whatever their useful life.

On a policy consistent with that of its similar trucks, computed under IAS 16, as an expense of the period.

It deducts depreciation from lease income, with no separate expense in profit or loss.