Blog Posts

This article explains how lease modifications impact lessees and lessors under IFRS 16, including remeasurements, discount rates, and accounting treatments.

This article explains the different tax consequences for leases, highlighting the distinctions between ICAs and normal rental agreements under South African VAT and income tax law.

Lease incentives, often provided by lessors to lessees, impact both the accounting treatment of leases and financial statements under IFRS 16. This article explores the definition, treatment, and implications of lease incentives for both lessees and lessors.

Under IFRS 16, the distinction between finance and operating leases remains crucial for lessors. A finance lease transfers substantially all risks and rewards of ownership, while an operating lease does not. Understanding this classification is essential for proper lease accounting.

The interest rate implicit in the lease is the rate that reflects the lessor’s return on a lease. One can think of it as the lessor's internal rate of return on the lease. This rate is used to discount lease payments to a present value, in order to recognise a lease liability