In this edition, we continue to explore further aspects of the new leases standard, including solving ongoing problems with IFRS 16, how to determine the lease term for undocumented or indefinite period leases, and how IFRS 16 will impact business combination accounting.
In our not-for-profit section, we look at the requirements for not-for-profit entities to be able to defer capital grants received to construct or acquire non-financial assets, and also at the AASB’s latest amendment to AASB 16 which clarifies that right-of-use assets for concessionary (peppercorn) leases can be a different class of asset to other right-of-use assets for fair value measurement purposes.
Lastly, we draw your attention to some important amendments to the way long-term debt will be classified as current or non-current liabilities from 2022.