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  • Writer's pictureThomas Tsang

FRS116 new application

In the initial application of FRS116. There are two way to recognize right of use assets under adjustment to opening balance

1 it is to right of use asset as if since commence date. The cumulative depreciation are adjusted to retained earnings

2 to recognize the right of use asset equal to lease liability on initial application. There will be have any retained earning effect.

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