Insurance and ROU: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
m (Categorise.)
 
imported>Doug Williamson
(Create page. Source: The Treasurer, September 2017, p40.)
 
Line 1: Line 1:
A contract designed to provide protection against specified types of risk or loss, by paying out to the insured party in the event that the insured loss occurs.
''Lease accounting - International Financial Reporting Standard 16 (IFRS 16)''
Insurance is generally provided by specialist insurance companies, to whom an insurance premium is paid by the insured in advance.


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


== See also ==
* [[Assurance]]
* [[Captive insurance company]]
* [[Chartered Insurance Institute]]
* [[Fixing instrument]]
* [[IAIS]]
* [[ILS]]
* [[Insurable]]
* [[Insurance risk]]
* [[Insure]]
* [[Option]]
* [[Premium]]
* [[Reinsurance]]
* [[Risk]]
* [[Risk response]]
* [[Trade credit insurance]]
* [[Transfer]]
* [[Underwriting]]


[[Category:Financial_risk_management]]
<span style="color:#4B0082">'''''Operating lessees must report an ROU asset'''''</span>
 
:"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==
*[[Finance lease]]
*[[Operating lease]]
*[[IAS 17]]
*[[IFRS 16]]
*[[Lease]]
*[[Debt]]
*[[EBITDA]]
*[[Frozen GAAP]]
*[[Interest cover]]
*[[Net worth]]
*[[Off balance sheet]]

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