Note 16: Commitments (a) Capital commitmentsThe group had to make capital commitments for the construction and development of the Keysbrook project within one year of June 30, 2016 (2015: $24.209 million). b) A non-resilient business lease in fiscal 2013, the company entered into a commercial lease for the rental of office space. The Committee received a request to apply the lease conditions under IFRS 16 to a kancellable lease or a renewable lease with a particular model: no, this is not the case. In fact, it can be terminated within 2 months and there is no mention of penalties. I need your opinion on the following rent – We take several motor cars for use by our employees, most of the time are 12 months of contract term, but some have a contractual duration of more than 12 months as well, but all these rents can be on 1-2 months notice. We must capitalize vehicles such as ROU The determination of the short-term lease is consistent with the definition of a lease term, i.e. options that must be extended, should be taken into account when a company is reasonably sure of exercising a renewal option (OR NOT TERMINATE) of a lease. I`ve loved Silvia since she launched the IFRS Box and I`ve learned so much from her, almost my entire audit career (7 years and counting). But I do not agree with her on this issue. Even if the “non-CANCELLABLE” period is only 2 months, but the total duration of the tenancy is 3 years, with the possibility of extending by one year – if there is an incentive for the tenant not to sue THE TERMINATE and the lease for the entire period (3 years), we must include this as part of the “rental term”. It is like an IMPLIED option to extend, even if the explicit option is to extend the PLUS 1 after year 3.
If management evaluates it on the basis of a judgment, it will make full use of the initial 3-year period – it is an IMPLIED option to extend the non-resilient period by 2 months. Well, IFRS 16 indicates that the term of the lease is not terminated. Non-resilient time means that the contract is enforceable during this period. I am confused for if I resign in leasing without the intention of cancelling at the end of the agreement next to a condition of the tenant has a wright, he should pay a full period. I.E renting related parts in a monthly rent bill as before a business opened a branch in a building, signing a lease with the owner of the building on which the branch is located. Thank you for your understanding. I would like to know how (a) and (b) the definition of the lease can be interpreted? As provided for by IFRS 16, (a) periods covered by a lease renewal option if the underwriter is reasonably sure of exercising this option; and (b) periods covered by the option to terminate the lease when the underwriter is reasonably certain not to exercise this option. So if, in your example, the lease is 10 years with a 5-year extension option – do you assume the option is agreed – I`ll include the 5 years, but I`ll ignore the 10 years that I`ll probably use in the agreement itself? It doesn`t make sense.
Does it also mean that if I have a lease with a related party that is not written, it will be treated as an effort, even though it is likely that the lease will continue permanently? The terms are defined below: “Not applicable: this is the most advantageous insurance condition for the policyholder.