Indexing low value leased assets

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Low value leased assets do not need to be capitalized under IFRS 16.
At the introduction of the new lease accounting standard IFRS 16, an amount of (the equivalent of) US$ 5,000 was mentioned as exemption allowance per item.

This article discusses the reasoning and calculation of how to arrive at a floor amount for activating as of 1-1-2020 of the equivalent of US$ 5,412.

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In January, it is time to think again about indexing low value leased assets for the coming year.

In this article the argumentation and calculation is shown how to arrive at the floor limit for activating per 1-1-2020 of the equivalent of US$ 5,412.