Is a contract with a barter transaction a lease under IFRS 16?

Question

A rent contract has non-cash payments but just a barter transaction between parties.

Answer 1

A contract with a barter transaction may be considered a lease under IFRS 16 if it meets the criteria for a lease as defined by the standard. IFRS 16 defines a lease as a contract, or part of a contract, that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The standard requires that a lease be recognized as a liability and an asset on the balance sheet if the contract meets this definition. It would be important to review the specific terms and conditions of the contract to determine if it meets the criteria for a lease under IFRS 16.

Answer 2

Non-cash item ( asset) ------DR
|Rent Revenue ----------------CR

Answer 3

Is not a lease. In barter exchange for goods or services exist

Answer 4

Generally rental contracts are scoped out of ifrs-16 becoz suppler/ owner will have control over the identified asset.if not, it will be a lease under ifrs-16 becoz
 As per ifrs-16 lease is a contract that conveys the right to control the use of an identified asset for a period of time in exchange for "consideration".No where it is specifically said consideration should be monetary but whether monetary/ non monterary consideration should be fixed.
As per my view rental contracts with barter consideration will not cover under ifrs-16 subject to " right to control " in the hands of buyer/ customer.

Answer 5

With a barter both parties treat the offered assets as disposed at fair value at disposal date. The asset received is treated as an acquisition with the FV of the disposed asset. Any excess of the FV is taken to OCI as items that may not be reclassified.