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May 19, 2020 at 05:26 PM

RE-FX Advanced payments with IFRS16

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Hi all.

I need to fix an issue with the RoU generated in a contract. Currently we have a contract with a notice rule in september, so, in valuation, RoU was created until september (9 months). But with this contract, you make an advanced payment for the full year, 12 months, so the transitory account is not balanced. From accounting they told us that the RoU should be created for 12 months because that is the amount we have paid; but valuation is until september, that is when one of the parts can make effective the end of the contract. Next valuation will start on 1st of january of 2021.

How can I reflect that RoU for those cases where my payment is taking more months than my valuation?

BR.