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Version date: 26 February 2020 - onwards

Initial direct costs (paragraphs 69 and 83) (para. BC237)

(paragraphs 69 and 83)

BC237 IFRS 16 defines initial direct costs consistently with the definition of incremental costs of obtaining a contract in IFRS 15. Defining initial direct costs in this way means that the costs incurred by a lessor to obtain a lease are accounted for consistently with costs incurred to obtain other contracts with customers.