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Workpaper template

WorkpaperIFRS 16 — LeasesL2 · L3 · L4

Lease disclosures (lessee and lessor)

2 missions8 sections to document45 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

Gather the amounts for the period and the maturity analyses, check the lessee presentation, complete the lessee and lessor checklists, then assess the additional qualitative information needed to meet the disclosure objective and draft the single lease note.

8 sections · 44 blocks · 0 calculations · 0 entries

  • IFRS 16 §47
  • IFRS 16 §48
  • IFRS 16 §49
  • IFRS 16 §50
  • IFRS 16 §51
  • IFRS 16 §52
  • IFRS 16 §53
  • IFRS 16 §54
  • IFRS 16 §55
  • IFRS 16 §56
  • IFRS 16 §57
  • IFRS 16 §58
  • IFRS 16 §59
  • IFRS 16 §60
  • IFRS 16 §60A
  • IFRS 16 §89
  • IFRS 16 §90
  • IFRS 16 §91
  • IFRS 16 §92
  • IFRS 16 §93
  • IFRS 16 §94
  • IFRS 16 §95
  • IFRS 16 §96
  • IFRS 16 §97
  • IFRS 16 §B48
  • IFRS 16 §B49
  • IFRS 16 §B51
  • IFRS 16 §B52

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

2 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Sale and leaseback of the head office and disclosures by the seller-lessee
Case tasks documented here
  • What is the impact of the transaction on the consolidated financial statements?
  • Which disclosures do you provide in the note at 31 December 20X1?
1

Inputs

Inputs

  • Entity's leasing activities (lessee, lessor, classes of underlying assets)

    TextRequired

  • Right-of-use assets by class of underlying asset

    Table

    BUILDINGS · 697,151.49 · 2,091,454.48 · 1,394,302.99

  • Interest expense on lease liabilities

    Number

    163,394.88

  • Expense relating to short-term leases

    Number

  • Expense relating to leases of low-value assets

    Number

  • Expense relating to variable payments not included in the lease liability

    Number

  • Income from subleasing right-of-use assets

    Number

  • Total cash outflow for leases

    Number

    1,200,000

  • Gains or losses arising from sale and leaseback transactions

    Number

    2,423,556.85

  • Undiscounted lease liabilities: within one year

    Number

    1,200,000

    The lessee's maturity analysis follows IFRS 7 (para. 58): the time bands proposed here are an example; the entity uses appropriate time bands by judgement.

  • Undiscounted lease liabilities: after one year and within five years

    Number

    1,200,000

  • Undiscounted lease liabilities: after five years

    Number

    0

  • Undiscounted lease liabilities: total

    Number

    2,400,000

  • Lessor: selling profit on finance leases

    Number

  • Lessor: finance income on the net investment

    Number

  • Lessor: income from variable payments not included in the net investment

    Number

  • Lessor: operating lease income

    Number

  • Lessor: of which variable payments that do not depend on an index or a rate

    Number

  • Finance leases: undiscounted lease payments receivable: year 1

    Number

  • Finance leases: undiscounted lease payments receivable: year 2

    Number

  • Finance leases: undiscounted lease payments receivable: year 3

    Number

  • Finance leases: undiscounted lease payments receivable: year 4

    Number

  • Finance leases: undiscounted lease payments receivable: year 5

    Number

  • Finance leases: undiscounted lease payments receivable: after five years

    Number

  • Finance leases: undiscounted lease payments receivable: total

    Number

    The undiscounted total is reconciled to the net investment, showing the unearned finance income and the discounted unguaranteed residual value (para. 94).

  • Operating leases: undiscounted lease payments receivable: year 1

    Number

  • Operating leases: undiscounted lease payments receivable: year 2

    Number

  • Operating leases: undiscounted lease payments receivable: year 3

    Number

  • Operating leases: undiscounted lease payments receivable: year 4

    Number

  • Operating leases: undiscounted lease payments receivable: year 5

    Number

  • Operating leases: undiscounted lease payments receivable: after five years

    Number

  • Operating leases: undiscounted lease payments receivable: total

    Number

  • Finance leases: unearned finance income

    Number

  • Finance leases: discounted unguaranteed residual value

    Number

  • Finance leases: closing net investment

    Number

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Lessee presentation

Analysis

IFRS 16 §47IFRS 16 §48IFRS 16 §49IFRS 16 §50

  • Presentation checks

    ChecklistRequired

    • Right-of-use assets and lease liabilities separate or line items stated; investment property apart
    • Interest presented separately from depreciation, within finance costs
    • Classification of cash flows: principal, interest, exempt and variable payments
4

Lessee disclosures

Disclosure

IFRS 16 §51IFRS 16 §52IFRS 16 §53IFRS 16 §54IFRS 16 §55IFRS 16 §56IFRS 16 §57IFRS 16 §58IFRS 16 §60IFRS 16 §60A

  • Lessee checklist

    Checklist

    • Disclosure objective and single note (cross-references allowed)
    • Amounts for the period: depreciation by class, interest, exempt and variable expenses, sublease income, cash outflow, additions, sale and leaseback, carrying amounts
    • Tabular format, costs included in the carrying amount of another asset included
    • Short-term lease commitments if the portfolio differs from that of the expense
    • Right-of-use assets that are investment property (IAS 40) or revalued (IAS 16)
    • Maturity analysis of lease liabilities under IFRS 7, separate from other liabilities
    • Use of the exemptions disclosed
    • Rent concession practical expedient: scope and amount in profit or loss
5

Lessor disclosures

Disclosure

IFRS 16 §89IFRS 16 §90IFRS 16 §91IFRS 16 §93IFRS 16 §94IFRS 16 §95IFRS 16 §96IFRS 16 §97

  • Lessor checklist

    Checklist

    • Lessor disclosure objective
    • Selling profit, finance income, variable income and operating lease income, in tabular format
    • Explanation of significant changes in the net investment
    • Annual maturities for five years then a total, reconciled to the net investment
    • Assets under operating leases: IAS 16, IAS 36, IAS 38, IAS 40, IAS 41 disclosures separated
    • Undiscounted annual maturities of operating lease payments
6

Additional qualitative information

Judgment

IFRS 16 §59IFRS 16 §B48IFRS 16 §B49IFRS 16 §B51IFRS 16 §B52IFRS 16 §92

  • Qualitative topics considered

    Checklist

    • Variable payments: reasons, significance, key variables and sensitivity
    • Extension or termination options and residual value guarantees
    • Leases not yet commenced and restrictions imposed by leases
    • Sale and leaseback transactions: reasons, key terms and cash flow effects
    • Lessor: nature of activities and management of the risk on rights retained

  • Qualitative information to add

    JudgmentRequired

    Additional information needed to meet the disclosure objective

    Additional information needed to meet the disclosure objective / No relevant additional information beyond the required amounts

    Relevance to users and whether the information already appears elsewhere guide the judgement (para. B48); the topics proposed are examples, not a mandatory list.

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

7

Conclusion

Conclusion

  • Lease note complete

    ConclusionRequired

8

Normative references

References

  • Paragraphs cited in this workpaper (verification status shown from the register)

    References

9

Checks and financial statement impact

  • The judgement on qualitative information is documentedPass
  • The total of the lessee's maturity analysis equals the sum of the bandsPass
  • The maturity total (finance lease) equals the sum of the yearsNot evaluated
  • The maturity total (operating lease) equals the sum of the yearsNot evaluated
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0