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IFRS 16 Leases: Understanding Commencement Dates and Scope Exceptions
Which of the following leases would be considered outside of the scope of the guidance in IFRS 16? Negotiation Date Access Date Inception Date Commencement Date

The term "Commencement Date" refers to the date when the lease becomes effective and the rights and obligations of the lease agreement start to apply. According to IFRS 16, the guidance on leases, the lease commencement date, also known as the "lease inception date," marks the beginning of the lease term and is considered the start of the lease for accounting purposes. Therefore, a lease would be considered outside of the scope of IFRS 16 if its commencement date is within 12 months of the identification of the lease, or if the underlying asset being leased is of low value, as per the standard's exemptions for short-term and low-value asset leases. The other dates mentioned—Negotiation Date, Access Date, and Inception Date—are not specific terms defined in the context of IFRS 16 for determining the applicability of the lease under the standard.