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MFRS
Onerous operating leases
01 Apr 2015This issue discusses the application of MFRS 137 Provisions, Contingent Liabilities and Contingent Assets to onerous operating leases for the lessee.
This Hot Topic provides guidance on:
• determining when a lessee’s operating lease is an onerous contract
• recording provisions for onerous operating leases, including:
a) income available from sub-letting
b) the distinction between onerous contracts and future operating losses
c) the relationship between onerous contracts and asset impairment.
Also appears under...