Indexing minimum amount for low value leased assets 2022
We are talking about “Low value Leased Assets” and how to account for them when applying IFRS 16.
It is allowed for leased assets with an original value of US$ 5,000 maximum to be recorded and reported simply via an exception, a so-called ‘practical expedient’.
The information accompanying IFRS 16 states that the amount referred to may be indexed annually.
Perhaps influenced by rising inflation, indexing now has more attention, but Tweuus has been reporting on this every year since 2017.
Request the article in which Tweuus discusses annual indexing for free via the contact form below.
Also interesting: how do you account for such ‘small’ assets?