I would like some advice on how to treat rent lease agreement in the stat accounts under the IFRS 16. Accounting year end is Sep 2019.
The lease contract is very simple - it is 12months contract for rent of offices and car park with monthly invoice and payment of £1,700 per month and deposit of £1,500 (paid 3 years ago as lease is renewed every year). Lease started in Dec 2018 and ends in Nov 2019. Year end is Sep 2019. As at year end Right of Use asset is 2x £1,700= £3,400 and liability is also £3,400. Does this make sense? I just would like to know if I understand the presentation requirements of this new standard properly.
In the standard it states that it needs to be adopted for periods starting in January 2019. So I wonder if I could use this standard for earlier period or have to wait until next accounting year end?