CERTYNEX IFRS ACADEMY

The Sorelia group, a lessee, applies IFRS 16 under the retrospective method with the cumulative effect at the date of initial application, for a portfolio of contracts previously classified as operating leases. Which of the following are practical expedients that the standard makes available to it?

Not reassessing whether existing contracts are, or contain, a lease, applying the standard to contracts identified as leases under IAS 17 and IFRIC 4.

Recognising no lease liability for former operating leases still running.

Applying a single discount rate to a portfolio of leases with similar characteristics.

Excluding initial direct costs from the measurement of the right-of-use asset at the date of initial application.

Discounting the remaining payments at the lessee's incremental borrowing rate at the original commencement date of each lease.

Accounting as short-term leases for those ending within 12 months of the date of initial application.