Operating segment and ROU: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Create page. Source: The Treasurer, September 2017, p40.)
 
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''Financial reporting - international financial reporting standards - IFRS 8.''
''Lease accounting - International Financial Reporting Standard 16 (IFRS 16)''


Under IFRS 8 (Operating segments) an operating segment is a component of a reporting entity:
In the lease accounting context, ROU means Right of Use.


*That engages in business activities from which it may earn revenues and incur expenses;
*Whose operating results are reviewed regularly by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and
*For which discrete financial information is available.


<span style="color:#4B0082">'''''Operating lessees must report an ROU asset'''''</span>


== See also ==
:"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.
* [[Entity]]
* [[Financial reporting]]
* [[IFRS 8]]
* [[Reportable segment]]
* [[Segment]]


[[Category:Accounting,_tax_and_regulation]]
: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