European Union (Withdrawal Agreement) Act 2020 and ROU: Difference between pages

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imported>Doug Williamson
(Create page. Source: The Treasurer, September 2017, p40.)
 
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''UK - European Union - Brexit.''
''Lease accounting - International Financial Reporting Standard 16 (IFRS 16)''


(EU(WA)A 2020).
In the lease accounting context, ROU means Right of Use.


The UK's European Union (Withdrawal Agreement) Act 2020 was passed in January 2020.


It gave effect to the Withdrawal Agreement<sup>(*)</sup> between the UK and the European Union, including the transition period ended 31 December 2020.
<span style="color:#4B0082">'''''Operating lessees must report an ROU asset'''''</span>


It also amended the European Union (Withdrawal) Act 2018.
:"The major change for lessees [under IFRS 16] is that all operating leases must be reported on balance sheet through the creation of a right of use (ROU) asset and corresponding liability.


:The ROU asset is calculated based on the present value of future rental cash flows discounted at the rate implicit in the lease or, if this is not available, the incremental borrowing rate, and depreciated over the remaining lease term."


The 2020 Act passed the necessary legal changes to implement Brexit in the UK, subject to the transition period ended 31 December 2020.
:''The Treasurer magazine, September/October 2017, p40 - Paul Lippitt and Armaghan Haq.''


Its effects included:
*Repeal of the European Communities Act 1972 (the ECA), which enabled the UK to join the EU in 1973.
*Incorporation of EU law into domestic UK law 'wherever practical' with effect from 31 December 2020.
*Delegated powers to enable the UK government to adapt any UK domestic laws that 'originate from the EU, so as to fit the UK's new relationship with the EU'.


 
==See also==
 
*[[Finance lease]]
''<sup>(*)</sup> The European Union concluded the Withdrawal Agreement on 31 January 2020.''
*[[Operating lease]]
 
*[[IAS 17]]
 
*[[IFRS 16]]
 
*[[Lease]]
== See also ==
*[[Debt]]
* [[Article 50]]
*[[EBITDA]]
* [[Brexit]]
*[[Frozen GAAP]]
* [[Brexit Day]]
*[[Interest cover]]
* [[Brexit transition period]]
*[[Net worth]]
* [[Cliff edge]]
*[[Off balance sheet]]
* [[Equivalence]]
* [[EU-UK Trade and Cooperation Agreement]]
* [[European Economic Area]]
* [[European Union]]
* [[European Union (Withdrawal) Act 2018]]
* [[Exit day]]
* [[Hard Brexit]]
* [[IP completion day]]
* [[Onshore]]
* [[Parliamentary supremacy]]
* [[Retained EU law]]
* [[Sovereignty]]
* [[United Kingdom]]
* [[Withdrawal Agreement]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 12:40, 1 October 2017

Lease accounting - International Financial Reporting Standard 16 (IFRS 16)

In the lease accounting context, ROU means Right of Use.


Operating lessees must report an ROU asset

"The major change for lessees [under IFRS 16] is that all operating leases must be reported on balance sheet through the creation of a right of use (ROU) asset and corresponding liability.
The ROU asset is calculated based on the present value of future rental cash flows discounted at the rate implicit in the lease or, if this is not available, the incremental borrowing rate, and depreciated over the remaining lease term."
The Treasurer magazine, September/October 2017, p40 - Paul Lippitt and Armaghan Haq.


See also

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