Right of use assets что это
right of use
1 right to use
I heard that a film company is paying the city a million lire for the right to use the city as a background. — Я слышал, что какая-то кинокомпания заплатила городу миллион лир за право использования города как фона для съемок фильма.
The right to use and enjoy one’s property is safeguarded by both the Federal and State Constitutions. — Право использования и извлечения выгод из своей собственности защищено федеральной конституцией и конституцией штата.
2 right to use
3 right of use
4 right of use
5 right to use
6 right of use
7 right of use
8 right to use
9 right of use
10 right to use
11 right of use
12 right of use
13 right of prior use
14 Right of uninterrupted use
15 right could be developed only after use
16 right of concurrent use
17 right of continued use
18 right of joint use
19 right of limited use
20 right of prior use
См. также в других словарях:
right of use — in the civil law of Louisiana: a personal servitude conferring a specified use of an estate that is less than full enjoyment Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. right of use … Law dictionary
right — / rīt/ n [Old English riht, from riht righteous] 1 a: qualities (as adherence to duty or obedience to lawful authority) that together constitute the ideal of moral propriety or merit moral approval b: something that is morally just able to… … Law dictionary
Right-of-way — or right of way may refer to:In geography: *A situation in which although a parcel of land has a specific private owner, some other party or the public at large has a legal right to traverse that land in some specified manner. The term likewise… … Wikipedia
Right of self-defense — This article and defense of property deal with the legal concept of justified acts that might otherwise be illegal. For the general act of protecting one s person from attack, see Self defense. For the 1983 Canadian action thriller film, see Self … Wikipedia
Use of force by states — The use of force by states is controlled by both customary international law and by treaty law. The UN Charter reads in article 2(4):All members shall refrain in their international relations from the threat or use of force against the… … Wikipedia
Right-handedness — Someone who is right handed will prefer to use this hand for everyday activities, such as writing, maintaining personal hygiene, cooking and so forth. According to a variety of studies, anywhere from 70% to 90%Cite… … Wikipedia
right-of-way — | ̷ ̷ ̷ ̷| ̷ ̷ noun (plural rights of way or right of ways) 1. : a legal right of passage over another person s ground compare easement, servitude 2. : the area or way over which a right of way exists: as … Useful english dictionary
Right Of Egress — The legal right to exit or leave a property. Right of egress is usually used in conjunction with the right of ingress, which means the legal right to enter a property. The right of egress is most commonly found in real estate law. The rights of… … Investment dictionary
right — [OE] Right goes back ultimately to the Indo European base *reg ‘move in a straight line’, hence ‘direct’, hence ‘rule’, which also produced English rich and Latin rēx ‘king’ (source of English regal, royal, etc). Combination with the past… … The Hutchinson dictionary of word origins
right — [OE] Right goes back ultimately to the Indo European base *reg ‘move in a straight line’, hence ‘direct’, hence ‘rule’, which also produced English rich and Latin rēx ‘king’ (source of English regal, royal, etc). Combination with the past… … Word origins
Impairment of right-of-use assets
Impairment of right-of-use assets explains the lease assets now on the balance sheet and as a result also susceptible of impairment risks to be accounted for. Impairment of right-of-use assets
Right-of-use asset is a n asset that represents a lessee’s right to use an underlying asset for the lease term. Impairment of right-of-use assets
Right-of-use
A contract conveys the right to control the use of an identified asset if the customer has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset throughout the period of use/lease. Impairment of right-of-use assets
The right-of-use asset is depreciated over the lease term
In IFRS 16, lessees must record a right-of-use asset and a lease liability for all lease arrangements in their statement of financial position. Under IFRS 16, these ‘new’ right-of-use assets will be subject to the impairment requirements of IAS 36. Impairment of right-of-use assets
When to test for impairment? Impairment of right-of-use assets
Similar to other assets, a right-of-use-asset will only be tested for impairment when impairment indicators exist. If impairment indicators exist, an entity must determine whether the right-of-use-asset can be tested on a stand-alone basis or whether it will have to be tested at a Cash Generating Unit level (GCU-level). This will depend on whether the right-of-use-asset generates largely independent cash inflows from other assets or groups of assets.
Leased investment property
While there may be instances where leased assets generate largely independent cash inflows, an example would be a leased investment property, many leased assets will be used by an entity as an input in its main operating activities whether these are service-providing or production-of-goods related. It is therefore likely that many right-of-use-assets will be assessed for impairment at a CGU-level rather than at an individual asset level. Impairment of right-of-use assets
Even if there are no impairment indicators at the right-of-use-asset level or the respective CGU-level, right-of-use-assets will impact the annual goodwill impairment test by increasing the carrying amount of the CGU, or group of CGUs, at which goodwill is assessed for impairment. Impairment of right-of-use assets
In summary
There will be situations in practice where right-of-use-assets generate largely independent cash inflows and will be required to be tested on a stand-alone basis. This will depend on the actual facts and circumstances and may require significant judgment.
In many situations, the leased assets and, therefore, the right-of-use assets will not generate largely independent cash inflows. It will be necessary to determine the CGU to which the right-of-use assets belong and to perform the impairment test at that level.
Cash generating unit
An asset’s CGU is the smallest group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. IAS 36 contains detailed guidance and examples on the determination of the CGUs. The example below aims to illustrate the CGU application to leasing arrangements in the lessee’s financial statements.
CGU identification
Background Retail store chain M entered into the following three leases:
Store X makes all its retail purchases through M’s purchasing center. Pricing, marketing, advertising, and human resources policies (except for hiring X’s cashiers and sales staff) are decided by M. M also owns five other stores in the same city as X (although in different neighborhoods) and 20 other stores in other cities. All stores are managed in the same way as X.
What are the cash-generating units and at which level are the leased floors and therefore the right-of-use-assets assessed for impairment?
Analysis
In identifying cash-generating units for the stores, M considers whether, for example:
All of M’s stores are in different neighborhoods and were determined to have different customer bases. Although X is managed at a corporate level, X generates cash inflows that are largely independent of those of M’s other stores. Therefore, store X is a separate cash-generating unit. The leased ground floor of building A is used for retail store X and does not generate largely independent cash inflows. The right-of-use-asset in relation to the ground floor in building A is assessed for impairment at the store X CGU-level.
The second floor of building B is sub-let to a law firm. Due to the sub-lease, the right-of-use-asset generates largely independent cash inflows and must be assessed for impairment on a stand-alone basis.
The two floors leased in building C are used for marketing and human resources corporate functions. The right-of-use-asset in relation to these floors is a corporate asset and is allocated on a reasonable and consistent basis to the CGUs to which it relates.
In addition, retail chain M assesses goodwill for impairment on a country-by-country basis. The group of CGUs underpinning the goodwill impairment test on a country basis consists of all stores in the relevant country, including any right-of-use assets in relation to these stores, together with any allocated corporate assets, including any right-of-use corporate assets.
IFRS 16 may impact both a CGU’s carrying amount and the way the recoverable amount of the CGU is measured. Elements to consider include:
Cash flow forecast and discounted cash flow models
Companies should ensure consistency between the Carrying Amount (CA) and the Recoverable Amount of a CGU in an IAS 36 impairment calculation. The CA will generally include the ROU asset value and the lease liability 1 (refer to the section on lease liabilities below for more details).
If an entity uses a ‘free cash flow to the firm
IFRS 16 replaces operating lease expenses in the income statement with depreciation of the ROU asset and interest on the lease liability. In the statement of cash flows, the lease payments split into principal repayments of the lease liability which are included in the cash outflows related to financing activities and an interest element whose classification as operating or financing cash flows depends on a company’s accounting policy 3 IFRS 16 50.
The question arises how lease payments should be treated when determining the recoverable amount of a CGU post IFRS 16. Impairment of right-of-use assets Impairment of right-of-use assets
In practice two main approaches could be applied in the discounted cash flow analysis, which, if applied correctly, should lead to the same estimate of the Recoverable Amount. These approaches are: Impairment of right-of-use assets
Approach 1 requires changes to commonly used discounted cash flow models and/or the assumptions used when deriving the cash flows used in these models. The ROU asset and lease liability reflect the actual leases in place on the measurement date. The lease terms are finite and deviate in that respect from the indefinite term implied in the free cash flows used (in a ‘going concern’) when determining the Recoverable Amount. In a going concern, the ROU assets would need to be replaced by owned or new ROU assets after the lease term.
Discounted cash flow models should appropriately include an element of additional operating cash outflows in relation to the replacement of the ROU assets at the end of the lease term for both the forecast period and the terminal value. Impairment of right-of-use assets
In approach 2 the lease expenses would be classified (back) as operating expenses. This would essentially reflect the way how impairment analyses prior to the introduction of IFRS 16 would have been performed. The ‘old’ approach also assumed, often in a non-conscious way, that new leases would be entered into by growing operating expenses (that included lease payments) at a set rate.
Going forward this approach would result in a mismatch between management accounts and model forecast. This mismatch should be carefully analysed and reconciled to ensure consistency between management’s expectations versus impairment model assumptions. Impairment of right-of-use assets
While either of approaches 1 or 2, should result in the same Fair Value Less Cost of Disposal (FVLCD) if applied correctly, IAS 36 78, provides that the carrying amounts of certain recognized liabilities should be deducted in a calculation of the Recoverable Amount under Value in Use (VIU), implying that approach 1 should be applied for VIU, but deducting the carrying amount of lease liabilities rather than their fair value (IAS 36 78 applies to a lessee’s lease liability: “…the carrying amount of the liability is deducted in determining both the cash-generating unit’s value in use and its carrying amount”, i.e. the discounted cash flows will not include the cash outflows resulting from the lease payments to avoid double counting. This is based on the guidance in IAS 36.78 and the IFRS Interpretations Committee discussion [IAS 36 29, IAS 36 78 and IU 05-16]).
The change in cash flow classification of leases triggers a significant increase in operating cash flow.
The ROU asset balance and depreciation charge only reflects the lease payments over the IFRS 16 lease term – 3 years in the graph. Many DCF models will require an update to include replacement cash flows for ROU assets in the forecast period and terminal value (TV).
Another difference may arise from ROU assets being measured excluding the interest implicit in the payments.
Impairment of right-of-use assets
Impairment of right-of-use assets
Discount rate (WACC) Impairment of right-of-use assets
The way of determining the discount rate should be consistent with what is included in the cash flows. If the lease payments are not deducted from the free cash flows to the firm (approach 1 above), then the resulting net cash flows include the cash that will be used to pay the lease obligation. Impairment of right-of-use assets
In this approach the lease payments are treated as a financing item to the firm. Therefore, to ensure consistency with the cash flows, the capital cost of lease liabilities should be reflected in the weighted average cost of capital (‘WACC’). Impairment of right-of-use assets
Incorporating the capital cost of lease liabilities is expected to result in a reduction of the WACC, relative to a rate measurement that uses only ‘traditional’ debt and equity7.
Combined impact on net present values due to changes in cash flows and discount rate Impairment of right-of-use assets
Under approach 1 above, the RA of a CGU, before consideration of lease liabilities, would increase due to both higher operating cash flows (because of the exclusion of IAS 17 operating lease payments) and from using a lower WACC. This increase in net present values may be offset by inclusion of the lease liability.
Lease liabilities Impairment of right-of-use assets
Another topic for impairment testing post IFRS 16 relates to the allocation of lease liabilities to CGUs. ROU assets are non-financial assets in the scope of IAS 36 and generally need to be included in the carrying amount of the CGU unless they generate independent cash inflows. The inclusion of the corresponding lease liabilities in the carrying amount depends on whether a Market participants
Fair value is based on assumptions that market participants would use in pricing the asset or liability. ‘Market participants’ are buyers and sellers in the principal (or most advantageous) market who have all of the following characteristics:
Under IAS 36, the CA of a CGU does not include the CA of any recognized liability, unless an entity needs to consider that liability to determine the recoverable amount of the CGU [IAS 36 78]. This may occur when a Market participants
Fair value is based on assumptions that market participants would use in pricing the asset or liability. ‘Market participants’ are buyers and sellers in the principal (or most advantageous) market who have all of the following characteristics:
Fair value is based on assumptions that market participants would use in pricing the asset or liability. ‘Market participants’ are buyers and sellers in the principal (or most advantageous) market who have all of the following characteristics:
In cases where the lessee concludes that the Market participants
Fair value is based on assumptions that market participants would use in pricing the asset or liability. ‘Market participants’ are buyers and sellers in the principal (or most advantageous) market who have all of the following characteristics:
Fair value is based on assumptions that market participants would use in pricing the asset or liability. ‘Market participants’ are buyers and sellers in the principal (or most advantageous) market who have all of the following characteristics:
Similar to what is discussed above with respect to approach 1, due consideration needs to be given to replacement cash flows for the ROU assets after the lease term and the implications of the possible change in composition of cash flows to the discount rates used. Impairment of right-of-use assets
IFRS 16, Leases
1. Introduction and context setting
A lease is an agreement whereby the lessor (the legal owner of an asset) conveys to the lessee (the user of the asset) the right to use an asset for an agreed period of time in return for a payment or series of payments.
The approach of IAS 17 was to distinguish between two types of lease. Leases that transfer substantially all the risks and rewards of ownership of an asset were classified as finance leases. All other leases were classified as operating leases. The lease classification set out in IAS 17 was subjective and there was a clear incentive for the preparers of lessee’s financial statements to ‘argue’ that leases should be classified as operating rather than finance leases in order to enable leased assets and liabilities to be left out of the financial statements.
It was for this reason that IFRS 16 was introduced.
2. IFRS 16 – assets
IFRS 16 defines a lease as “A contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration”. In order for such a contract to exist the user of the asset needs to have the right to:
2.1 An ‘identified asset’
One essential feature of a lease is that there is an ‘identified asset’. This normally takes place through the asset being specified in a contract, or part of a contract. For the asset to be ‘identified’ the supplier of the asset must not have the right to substitute the asset for an alternative asset throughout its period of use. The fact that the supplier of the asset has the right or the obligation to substitute the asset when a repair is necessary does not preclude the asset from being an ‘identified asset’.
Example – identified assets
Under a contract between a local government authority (L) and a private sector provider (P), P provides L with 20 trucks to be used for refuse collection on behalf of L for a 6-year period. The trucks, which are owned by P, are specified in the contract. L determines how they are used in the refuse collection process. When the trucks are not in use, they are kept at L’s premises. L can use the trucks for another purposes if it so chooses. If a particular truck needs to be serviced or repaired, P is required to substitute a truck of the same type. Otherwise, and other than on default by L, P cannot retrieve the trucks during the six-year period.
Conclusion: The contract is a lease. L has the right to use the 20 trucks for six years which are identified and explicitly specified in the contract. Once delivered to L, the trucks can be substituted only when they need to be serviced or repaired.
2.2 The right to direct the use of the asset
IFRS 16 states that a customer has the right to direct the use of an identified asset if either:
Example – the right to direct the use of an asset
A customer (C) enters into a contract with a road haulier (H) for the transportation of goods from London to Edinburgh on a specified truck. The truck is explicitly specified in the contract and H does not have substitution rights. The goods will occupy substantially all of the capacity of the truck. The contract specifies the goods to be transported on the truck and the dates of pickup and delivery.
H operates and maintains the truck and is responsible for the safe delivery of the goods. C is prohibited from hiring another haulier to transport the goods or operating the truck itself.
Conclusion: This contract does not contain a lease.
There is an identified asset. The truck is explicitly specified in the contract and H does not have the right to substitute that specified truck.
C does have the right to obtain substantially all of the economic benefits from use of the truck over the contract period. Its goods will occupy substantially all of the capacity of the truck, thereby preventing other parties from obtaining economic benefits from use of the truck.
However, C does not have the right to control the use of the truck because C does not have the right to direct its use. C does not have the right to direct how and for what purpose the truck is used. How and for what purpose the truck will be used (i.e. the transportation of specified goods from London to Edinburgh within a specified timeframe) is predetermined in the contract. C has the same rights regarding the use of the truck as if it were one of many customers transporting goods using the truck.
3. Accounting for leases
With a very few exceptions (see section 3.4 for further details) IFRS 16 abolishes the distinction between an operating lease and a finance lease in the financial statements of lessees. Lessees will recognise a right of use asset and an associated liability at the inception of the lease.
IFRS 16 requires that the ‘right of use asset’ and the lease liability should initially be measured at the present value of the minimum lease payments. The discount rate used to determine present value should be the rate of interest implicit in the lease.
3.1 Recording the asset
The ‘right of use asset’ would include the following amounts, where relevant:
3.2 Depreciation
The right of use asset is subsequently depreciated. Depreciation is over the shorter of the useful life of the asset and the lease term, unless the title to the asset transfers at the end of the lease term, in which case depreciation is over the useful life.
3.3 Lease liability
The lease liability is effectively treated as a financial liability which is measured at amortised cost, using the rate of interest implicit in the lease as the effective interest rate.
Example – accounting for leases
The lease liability will be measured using amortised cost principles. In order to help us with the example in the following section, we will measure the lease liability up to and including the end of year ten. This is done in the following table:
Year
b/fwd
$
$
$
$
3.4 A simplified approach for short-term or low-value leases
A short-term lease is a lease that, at the date of commencement, has a term of 12 months or less. A lease that contains a purchase option cannot be a short-term lease. Lessees can elect to treat short-term leases by recognising the lease rentals as an expense over the lease term rather than recognising a ‘right of use asset’ and a lease liability. The election needs to be made for relevant leased assets on a ‘class-by-class’ basis. A similar election – on a lease-by-lease basis – can be made in respect of ‘low value assets’.
The assessment of whether an underlying asset is of low value is performed on an absolute basis. Leases of low-value assets qualify for the simplified accounting treatment explained above regardless of whether those leases are material to the lessee. The assessment is not affected by the size, nature or circumstances of the lessee. Accordingly, different lessees are expected to reach the same conclusions about whether a particular underlying asset is of low value.
An underlying asset can be of low value only if:
(a) The lessee can benefit from use of the underlying asset on its own or together with other resources that are readily available to the lessee; and
(b) The underlying asset is not highly dependent on, or highly interrelated with, other assets.
A lease of an underlying asset does not qualify as a lease of a low-value asset if the nature of the asset is such that, when new, the asset is typically not of low value. For example, leases of cars would not qualify as leases of low-value assets because a new car would typically not be of low value.
Examples of low-value underlying assets can include tablet and personal computers, small items of office furniture and telephones.
4. Sale and leaseback transactions
4.1 Introduction
The treatment of sale and leaseback transactions depends on whether or not the ‘sale’ constitutes the satisfaction of a relevant performance obligation under IFRS 15 – Revenue from Contracts with Customers. The relevant performance obligation would be the effective ‘transfer’ of the asset to the lessor by the previous owner (now the lessee).
4.2 Transaction constituting a sale
If the transaction does constitute a ‘sale’ under IFRS 15 then the treatment is as follows:
If the fair value of the consideration for the sale of an asset does not equal the fair value of the asset, or if the payments for the lease are not at market rates, an entity shall make the following adjustments to measure the sale proceeds at fair value:
Example – sale and leaseback
4.3 – Transaction not constituting a ‘sale’
In these circumstances the seller does not ‘transfer’ the asset and continues to reconise it, without adjustment. The ‘sales proceeds’ are recognised as a financial liability and accounted for by applying IFRS 9 – Financial Instruments. In the same circumstances, the buyer recognizes a financial asset equal to the ‘sales proceeds’.
5. Summary
The requirements of IFRS 16 will have significant impacts on key accounting ratios of lessees. The greater recognition of leased assets and lease liabilities on the statement of financial position will reduce return on capital employed and increase gearing. Initial measures of profit are likely to be reduced, as in the early years of a lease the combination of depreciation of the right of use asset and the finance charge associated with the lease liability will exceed the lease rentals (normally charged on a straight-line basis).