IFRS 16 — Lease

IFRS 16 — 租赁

#会计学笔记/财务会计/租赁

Main feature of the IFRS 16

IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. For short-term leases or low value assets, the lease payments are simply charged to profit or loss as an expense (see below).

For all other leases, the lessee recognises a right-of- use asset, representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. For lessors, there is little change from the IAS 17 requirements. Lessors will continue to recognise the distinction between finance and operating leases.

我们的IFRS16 和原来的准则不一样，对于租客我们不区分融资性的租赁还是经营性的租赁，而是我们仅仅的确认一个Right-of-Use asset，对于我们的Landlord我们仍然还是使用原来的IAS17来应对。 IAS 17 — Leases

The factors considered in the lease

The key factor in the lease are below

1. Is there are identified asset
2. Does the customer have the right to obtain substantially all the economic benefits from the use of the asset through the period
3. Who has the right to direct how and for what purpose the asset is used
4. Does the customer have the right to operate the asset throughout the period of use without the supplier having the right to change the oprating instrument

Why we need the IFRS 16 instead of the IAS 17

The different accounting treatment of finance and operating leases was criticised for a number of reasons.

a) Many users of financial statements believed that all lease contracts give rise to assets and liabilities that should be recognised in the financial statements of lessees. Therefore, these users routinely adjusted the recognised amounts in the statement of financial position in an attempt to assess the effect of the assets and liabilities resulting from operating lease contracts.

b) The split between finance leases and operating leases could result in similar transactions being accounted for very differently, reducing comparability for users of financial statements.

c) The difference in the accounting treatment of finance leases and operating leases also provided opportunities to structure transactions so as to achieve a particular lease classification.

It was also argued that the current accounting treatment of operating leases was inconsistent with the definition of assets and liabilities in the IASB’s Conceptual Framework. An operating leases contract conferred a valuable right to use a leased item. This right met the Conceptual Framework’s definition of an asset, and the liability of the lessee to pay rentals met the Conceptual Framework’s definition of a liability. However, the right and obligation were not recognised for operating leases.

Objective

The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions.

It replaces IAS 17, which required lessees and lessors to classify their leases as either finance leases or operating leases and account for these two types of lease differently. IAS 17 didn’t require lessees to recognise assets and liabilities arising from operating leases. IFRS 16 was brought in to remedy this.

How to identifying a lease

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration .

What is the right to control the use of an identified asset

1. The right to obtain substantially all of the economic benefits from use of the identified asset
2. The right to direct the use of the identified asset .This arises if either

• The customer has the right to direct how and for what purpose the asset is used during the whole of its period of use
• The relevant decisions about use are pre-determined and the customer can operate the asset without the supplier having the right to change those operating instruction.

If the leasee does  not control the user of an identified asset if the lessor can substitute the underlying asset for another asset during the lease term and would benefit economically from doing so.

Recognition exemptions

Instead of applying the recognition requirements of IFRS 16 described below, a lessee may elect to account for lease payments as an expense on a straight-line basis over the lease term or another systematic basis for the following two types of leases

1. Short-term leases. These are leases with a lease term of twelve months or less. This election is made by class of underlying asset. A lease that contains a purchase option cannot be a short-term lease.
2. Low value leases .These are leases where the underlying asset has a low value when new .This election can be made on a lease-by-lease basis .An underlying asset qualifies as low value only if two conditions apply:

• The leasee can benefit from using the underlying asset
• The underlying asset is not highly dependent on or highly interrelated with other assets.

Separating components of a contract

In the case of contracts with both a lease component and a non-lease component, entities must account for the lease component of the contract separately from the non-lease component (IFRS 16: Para 12)

A contract may contain both a lease component and a non- lease component. In other words it may include an amount payable by the lessee for activities and costs that do not transfer goods or services to the lessee (IFRS 16 :Para 833). These activities and costs might, for example, include maintenance ,repairs or cleaning.

我们对于一个合同之中的不同的元素应该分别进行确认，把服务以及租赁进行分摊。

The initial measurement of the Right-Of-Use asset

At the commencement date the right-of-use asset is measured at cost. This comprises:

(a) The amount of the initial measurement of the lease liability

(b) Any lease payments made before the commencement date,

less any lease incentives received

(c) Any initial direct cost Incurred by the lessee

(d) Any costs which the lessee will incur for dismantling and

removing the underlying asset or restoring the site at the end of the lease term

对于租赁的初始的计量我们其实可以参考我们的 IAS 16 IAS 16—Property Plant and Equipment 也就是我们的成本由几个部分组成，比如说我们一开始的初始负债的金额、加上我们的净支出（也就是我们之前提前支付的金额减去其所给的抵减的金额、任何我们一开始的初始的之间的成本、我们在租赁期结束之后所要支付的钱可以参考 IAS 37—Provisions, contingent liabilities and contingent assets

The initial measurement of the lease liability

At the commencement date the lease liability is measured at the present value of future lease payments , including any expected payments at the end of the lease, discounted at the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rateshould be used

The subsequent measurement of the Right-Of-Use asset

After the commencement date the right-of-use asset should be measured using the cost model in IAS 16 IAS 16—Property Plant and Equipment , unless it is an investment property or belongs to a class of assets to which the revaluation model applies.

• If the time of leasing is longer than the use life of the asset ,Then we should depreciate the asset in the leasing period rather than the period of the use lift。如果我们的租赁期的长度是长于我们的资产的剩余的使用年限的话，我们事实上是按照我们的租赁期的长度来进行折旧的，也就是说我们相当于分期购买了一个这样子的资产
• If the lease transfers ownership of the underlying asset at the end of the lease term or if the cost reflects a purchase option which the lessee is expected to exercise, the right-of-use asset should be depreciated over the useful life of the underlying asset.如果我们的租赁期结束之后，有一个所有权的转移，那么我们相当于是使用了这个资产的一生，所以说我们还是按照我们的使用寿命进行折旧。
• If there is no transfer of ownership and no purchase option, the right-of-use asset should be depreciated from the commencement date to the earlier of the end of the useful life and the end of the lease term.如果我们到最后不会导致所有权的转移也没有Purchase Option，那么我们就是按照我们的从交易的那一天到我们的合同结束的一天以及报废那天二者早者进行折旧。

After the commencement date the carrying amount of the lease liability is increased by interest charges on the outstanding liability and reduced by lease payments made.

计算

对于这个租赁的计算，我们可以类比于我们的Morgage来租房。

我们先算出当年的Liability，然后我们分两种情况进行计算。

如果是我们每年在年底支付我们的Payment

如果是在年底支付的话，我们每做一次Payment都要把我们的负债减少一部分，根据年初的负债来计算我们的Interest，我们的年初的Liability加上我们的Liability再减去我们的Payment的金额就可以得到年底的负债，也就是下一年的年初的负债。

如果我们是在每年的年初支付我们的Payment

如果是在年初支付的话，我们一开始就要减去Payment的负债的数目，然后依据这个金额来计算我们的Interest，然后在年末加上这个金额得到我们本年的负债。

租赁期

对于租赁期的确定的话，我们需要注意的是这个租赁期由几个不同的部分一起构成，第一个部分就是我们一旦签订了租赁合同之后无法改变的那样的一个部分的金额。

第二部分的金额就是说我们的租赁合同之中涉及了这样子的一个部分，也就是说，租客在租期结束之后有着优先的续租权，并且租客很有可能会去行使这样的一个权力。

第三部分的时间的话，可以看成是一个

Presentation

In the statement of financial position right-of-use assets can be presented on a separate line under non-current assets or they can be included in the total of corresponding underlying assets and disclosed in the notes.

Lease liabilities should be either presented separately from other liabilities or disclosed in the notes

IFRSS 16 does not specify that lease liabilities should be split between non-current and current liabilities, but this should be done as best practice.

在资产负债表里面，我们的这样的一个Right-Of-Use Asset应该是单独的Present在报表上面，并且其位置按照流动性的话其实是在我们的NCA的下面一个。我们的负债也要注意是一个长期的负债还是仅仅是一个短期的负债。

Revision of lease term

A change in the assessment of whether an extension or termination option will be exercise gives rise to a remeasurement of the lease liability. To account for this, the lessee must:

• a) Adjust the lease liability by:
  • I. Including the lease payments over the revised term
  • II. Applying a revised discount rate
• b) Make a corresponding adjustment to the right asset

也就是说，当我们的后续的Lease Term要进行改变的时候，我们其实在改变的当期，要按照我们的当时的Cost Of Capital进行折旧。

Variable lease payments

The treatment of variable lease payments(called”contingent rentals” under IAS 17) depends on the type of variable payment.

• a) Payments that vary according to an index or rate are included in the lease liability and asset based on the index or rate at the measurement date. The lease liability is remeasured when the index or rate changes and the lease payments are revised.
• b) Payments that vary based on future usage of the leased asset are not included in the lease liability or asset. They are recognised as an expense in the period in which the event or condition that triggers the payment takes place.
• c) However, variable payments that are in-substance fixed payments are included in the lease payments. They are treated as fixed payments.

Sale and leaseback

A sale and leaseback transaction involves the sale of an asset and the leasing back of the same asset.

IFRS 16 requires an initial assessment to be made regarding whether or not the transfer constitutes a sale. This is done by determining when the performance obligation is satisfied in accordance with IFRS 15 Revenue from Contracts with Customers. IFRS 15 — Revenue

Transfer is not a sale

If the transfer does not satisfy the IFRS 15 requirements to be accounted for as a sale, the seller continues to recognise the transferred asset and the transfer proceeds are treated as a financial liability, accounted for in accordance with IFRS 9. The transaction is more in the nature of a secured loan.

Transfer is a sale

If the transfer satisfies the IFRS 15 requirement to be accounted for as a sale:

• The seller/lessee measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right-of-use retained by the seller/lessee/
• The seller/lessee only recognises the amount of any gain or loss on the sale that relates to the rights transferred to the buyer.

If sale is Under the Fair Value

 

And the retain rate is calculate as the PV of the future cash flow related to the Lease divided by the Fair value of the asset(The value we sale it to our customer)

准则的制定者认为我们的售后租回可以看成是一个特别的交易。我们如果按照常规的做法的话，也就是看成是两个组成的部分，第一个部分是我们销售资产得到销售的收入，第二步就是我们租赁这个资产，按照我们之前的方式入账。那么这就是将两笔交易分开了看了。但是我们如果将其看成一个整体的话，我们不可以分开考虑。 所以我们使用另一种做法，我们将我们的资产停止确认，也就是将我们的PPE的金额冲销，然后确认我们的Cash流入，接着到了重头戏，也就是说我们的这个租赁的资产的定价，我们该怎么定价呢？我们的Lease Liability是可以计算出来的，也就是说我们未来的现金的流出是可以确定的从而我们的现实的现金流出是可以大致的确认的，我们的现在的Fair Value是已知的，也就是说我们的如今的现金的流入是可以确认的。那么我们既然可以确认现实的现金的流入以及现实的现金的流出，那么我们将其一比，算出一个类似于我们的Margin的东西，这个Ratio其就是代表了我们做这样的一个交易，我们到底还有多少原来的东西在账上的比率，那么我们使用1减去这个Ratio就可以得到我们真正的处置的比率。我们使用这样的一个处置的比率乘上我们的现在的现实的赚的钱（FV-CV）就可以得到我们现实真正的收益。然后我们的Right of use Asset的金额既可以反推出来也可以这样的理解，我们其实还保留了一部分的资产在我们的账目上，而这部分的金额其实就是我们的Retain Ratio Times the CV。

If the sale is under the Fair Value

Any below-market terms should be accounted for as a prepayment of lease payments (the shortfall in consideration received from the lessor is treated as a lease payment made by the lessee)

对于低于市场价值的资产销售，我们将其确认为我们的提前支付的定金，也就是我们的预付款。

If the sale is above the Fair Value

Any above-market terms are accounted for as additional financing provided by the buyer/lessor (the additional amount paid by the lessor is treated as additional liability, not as gain on the sale)

我们超出的钱看成是我们多借的贷款，

Impact

Impact on SOFP

Companies will be required to report larger amounts of assets liability in their statements of financial position. This will particularly affect companies that currently have much of their leasing commitments off balance sheet in the form of operating leases. For example, many airlines lease their planes and show no assets or their future commitments. Under IFRS 16, an airline entering into a lease for an aircraft would show an asset for the ‘right to use’ the aircraft and an equal liability based on the current value of the lease payments it has promised to make. Possibly, as a result, loan covenants may be breached and have to be renegotiated.

The diagram below, taken from the IASB’ IFRS’s 16 Project Summary and Feedback Statement, illustrates the impact:

Impact on P/L

For companies that currently hold material operating leases, the pattern of expenses will change. Specifically, the lease expense will be “front-loaded”. This is because IFRS 16 replaces the usual straight-line operating lease expense for those applying IAS 17 with a depreciation charge for leased assets, included within operating costs and an interest expense on lease liabilities included within financing costs. While the depreciation charge is usually even, the interest expense is higher in the early years of the lease but reduces over the life of the asset. The total expense will generally be the same but there will be a difference in expense profile between IFRS 16 and IAS 17, with a consequent effect on EBITDA and operating profit, as seen in the diagram below, also taken from the IASB’s IFRS 16 Project Summary and Feedback Statements:

Impact on cash flow

While IFRS 16 does not change the amount of cash paid by the lessee to the lessor, or the total amount of cash flows reported, it will generally change the presentation of cash flows in respect of leases previously accounted for as operating leases.

Operating cash outflows, which is where operating lease payments are reported under IAS 17, will reduce. However, there will be a corresponding increase in financing cash outflows. This is because repayments of the capital component of a lease liability are included within financing activities.