Questions & Answers
Irregular lease payments under IFRS 16 Leases
Question We took the lease contract to rent a building for 6 years with total cost of CU 60 000, of which: CU 30 000 is paid up front before we moved in; and CU 30 000 is paid at the beginning of the 4th…
Difference between provision and actual expenses
Question We make some provisions and accruals each year in our financial statements. However, the actual expenses incurred are almost always different from the accrual or a provision made. How should we book the difference between actual expenses and a provision? Should we restate the…
Decrease in decommissioning provision results in negative asset
Question We operate a power plant and we recognized a provision related to its decommissioning at the end of its useful life. We remeasure the amount of the provision annually based on updated discount rate and estimated cost report. We apply cost model to our…