IFRS 16 Leases prescribes accounting for both Lessee and the Lessor. In accordance with IFRS 16, While accounting for Lessors, there is a specific concept of the accounting for Manufacturer and Dealer Lessor. The lessor under such agreements recognizes sales at the lower of fair value of the asset or the present value of minimum lease payments. The asset is transferred to cost of goods sold as the carrying amount less the present value of guranteed residual value. This video explains accounting
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