Definitions and identifications
In this session, you'll learn how to define and identify leases under IFRS 16, a critical skill for Financial Reporting and Advanced Financial Reporting exams.
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In this lesson
- 0:00 Leases: definitions and identification
- 0:14 What is a lease and key roles
- 0:28 Understanding the lease term
- 0:52 How to identify a lease contract
- 2:01 Separating lease and non-lease components
- 3:17 Worked example: machinery and parts purchase
About this lesson
You'll explore the key definitions—lessee, lessor, and right-of-use asset—and understand how to determine whether a contract contains a lease by assessing control of an identified asset. The video walks you through identifying lease components, separating lease from non-lease elements (like maintenance or parts purchases), and allocating consideration based on standalone prices, with a practical worked example showing how to split payments between lease and non-lease components. This foundational knowledge is essential for tackling lease accounting questions accurately and confidently in your exams.
Duration: 5m
Transcript
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