4. Lessee accounting

IFRS 16 introduces a single lessee accounting model which requires the lessee to recognise a right-of-use asset and a lease liability at the same time. For short-term leases or low value assets, the lease payments are simply charged to profit or loss as an expenses.

4.1 Lease liability – Initial measurement

The lease liability is initially measured at the present value of lease payments not paid at the commencement date, discounted at the interest rate implicit in the lease (租賃內(nèi)涵利率) (or the lessee‘s incremental borrowing rate if not readily determinable).

承租人增量借款利率：the rate to borrow over a similar term, with similar security, to obtain an asset of similar value in a similar economic environment (承租人在類似經(jīng)濟(jì)環(huán)境下為獲得與使用權(quán)資產(chǎn)價(jià)值接近的資產(chǎn),，在類似期間以類似抵押品借入資金所需承擔(dān)的借款利率）

The lease liability cash flows to be discounted include the following:

? Fixed payments, less lease incentives receivable

? Variable payments that depend on an index (eg CPI) or rate (eg market rent)

? Amounts expected to be payable under residual value guarantees (eg where a lessee guarantees to the lessor that an asset will be worth a specified amount at the end of the lease) 承租人根據(jù)擔(dān)保余值預(yù)計(jì)應(yīng)付的金額

? Purchase options (if reasonably certain to be exercised). 購買選擇權(quán)行權(quán)價(jià)

? penalties for terminating the lease if the lease term reflects the lessee exercising an option to terminate the lease.（固定激勵(lì)加可變，行權(quán)罰款擔(dān)保值）

4.2 Lease liability – Subsequent measurement

The lease liability is subsequently measured (攤余成本法）:

? Increasing it by interest on the lease liability

? Reducing it by lease payments made.

Other variable payments (eg payments that arise due to level of use or sales of the asset) are accounted for as period costs in profit or loss as incurred.

4.3 Right-of-use asset – Initial measurement

The right-of-use asset is initially measured at its cost which includes:

 ? the amount of the initial measurement of the lease liability

 ? Payments made at/before the lease commencement date

  (less any lease incentives received)

 ? Initial direct costs (eg legal costs) incurred by the lessee

 ? An estimate of dismantling and restoration costs

[手寫板] Dr ROU Asset 50,000+10,000+2,000-8,000+20,000

        Dr Cash 8000

        Cr L.L 50,000

        Cr Cash(Initial) 10,000

        Cr Cash 2,000

        Cr Provision(PV) 20,000

4.4Right-of-use asset – Subsequent measurement

The right-of-use asset is normally measured subsequently at cost less accumulated depreciation and impairment losses in accordance with the cost model of IAS 16 Property, Plant and Equipment.

The right-of-use asset is depreciated from the commencement date to the earlier of the end of its useful life or end of the lease term (end of its useful life if ownership is expected to be transferred)

[手寫板]

Alternatively the right-of-use asset is accounted for in accordance with:

(a)The revaluation model of IAS 16 (optional where the right-of-use asset relates to a class of PPE measured under the revaluation model, and where elected, must apply to all right-of-use assets relating to that class)

(b) The fair value model of IAS 40 Investment Property (compulsory if the right-of-use asset meets the definition of investment property and the lessee uses the fair value model for its investment property