Lease transactions in foreign currency

The series of Lease Implementation Dilemmas deals, among other things, with Lease contracts in currencies other than the accounting currency in relation to IFRS16.

As is well known, IFRS16 has a particular impact on current and future operating leases.

Not only do these contracts have to be shown on the balance sheet.
In the back ground, there are usually (national, statutory) rules on the method of capitalising assets in the entity’s national or reporting currency. There are also binding rules on the tax treatment.

Derived questions then arise with regard to:
– the currency risk and the exchange rate to be used for each lease item,
– using the applicable discount rate for the initial value,
– the reporting of leased assets (monetary), separated from non-monetary assets.

Read in the attached article  attached article the state of affairs in the process.

We have not yet reached the finishing touch; give your opinion on this dilemma, privately via the contact form or in the discussion on LinkedIn.


In the series Lease Implementation Dilemmas the  following dilemma has also been discussed before:
Non-refundable VAT

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