For an operating lease under IFRS 16, the lessor does not remove the asset from its statement of financial position. Instead, the lessor retains the asset and depreciates the asset over its economic useful life.
With an operating lease, the lessor never recognizes sales revenue or cost of goods sold, and it doesn’t record a lease receivable or recognize interest revenue throughout the lease. Instead, the lessor recognizes lease revenue on a straight-line basis.
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