IFRS16 RE-FX Contrat x AA Asset Accounting.

[Gizelebb]

Hello,

We are implementing IFRS16 SAP Solution that use RE-FX integrated with FI-AA. In this case is it only possible to assign 1 asset to link with 1 RE-FX contract?

The costumer have situations that 1 legal contract have many Assets and they want to link all in the same RE-FX contract.

Thanks for your help.

Gizele

[former_member581851]

You have to understand that the asset recognized in IFRS16 is not a physical asset but a right-of-use asset. It represents the right to an object that you are leasing. Technically, you can assign multiple objects in a contract, for example, if you're leasing multiple rental objects and they all belong to the same lease contract. In this case, you can assign multiple items in the valuation parameter. Effectively, you'll be creating one asset for each rental object. This way, you can perform valuation and recognize an asset for each individual asset.

[dhawan_nitin]

Asset will Get Associated to a Contract Object in REFX. You can create multiple contract objects in Object Tabs in REFX