Insights into IFRS 16 – Interim periods – May 2019

The Grant Thornton International IFRS team has published Insights into IFRS 16 – Interim periods.

The bulletin Insights into IFRS 16 – Interim periods provides guidance on the recognition of variable lease payments in interim financial statements that are compliant with IAS 34, Interim Financial Reporting.

There appears to be a conflict between the guidance in IFRS 16 on the accounting for variable lease payments that are not based on an index or rate and the guidance in IAS 34 regarding variable lease payments based on sales.

The bulletin explains how to apply the guidance in IFRS 16 and IAS 34 on variable lease payments using examples.