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18.5: Leasing- Disclosures

  • Page ID
    100791
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    As leases tend to be long-term commitments, it is important to disclose information about the leased asset, lease obligation, and leased receivables. Below is a summary of some of the main IFRS 16 disclosures. Note that ASPE disclosures are similar but more simplified.

    Operating Leases: Finance Leases:
    Disclosures are basically the same as Disclosures are basically the same as
    those required for any assets, liabilities, those required for any assets, liabilities,
    and financial instruments. and financial instruments.
    Lessee Lessor Lessee Lessor
    A description of any significant leases, including contingent amounts, renewal options, purchase options, and any restrictions to company operations and activities. Same A description of any significant leases, including contingent amounts, renewal options, purchase options, and any restrictions to company operations and activities. Same
    Minimum lease payments within the next fiscal year, between the second and fifth future years (inclusive), and after the fifth future year. (Note: For ASPE, the aggregate lease payments for the next 5 years are to be reported.) Same Minimum lease payments within the next fiscal year, between the second and fifth future years (inclusive), and after the fifth future year. (Note: for ASPE, the aggregate lease payments for the next 5 years are to be reported.) Same
        The net carrying amount of each class of leased asset. The allowance of uncollectible amounts relating to lease receivables.
        A reconciliation between the undiscounted total future minimum lease payments and their present value at each reporting date. This will report how much interest cost is included in the minimum lease payments. A reconciliation between the gross lease receivable and their present value at each reporting date. This will report how much interest revenue is included in the minimum lease payments.
        Lease obligation is to be separated into current and long-term liability portions. Lease receivable is to be separated into current and long-term portions.

    18.5: Leasing- Disclosures is shared under a not declared license and was authored, remixed, and/or curated by LibreTexts.

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