BC74 IFRS 16 does not specifically exclude leases of inventory from its scope. The term ‘leased inventory’ is sometimes used to describe purchases of non-depreciating spare parts, operating materials, and supplies that are associated with leasing another underlying asset. The IASB noted that few of these transactions, if any, would meet the definition of a lease because a lessee is unlikely to be able to hold an asset that it leases (and that is owned by another party) for sale in the ordinary course of business, or for consumption in the process of production for sale in the ordinary course of business. Accordingly, the IASB decided that a scope exclusion was not necessary.
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