- The Russian Ministry of Finance clarified how the new VAT rate affects lease accounting under IFRS.
- If the lease payment amount (excluding VAT) remains unchanged, the lease liability or net investment in the lease does not change.
- If the total lease compensation (including VAT) remains unchanged and VAT increases, the lease payment is reduced accordingly; this is not considered a lease modification if the contract allows for such redistribution.
- Lessees should remeasure lease liabilities using the original discount rate, reflecting the change as a reduction in the right-of-use asset; lessors must develop an accounting policy for remeasuring net investment in the lease.
- If the contract does not provide a redistribution mechanism for VAT changes, organizations must develop an accounting policy to address the VAT rate change under IFRS 16.
Source: garant.ru
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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