Background

- The Company has an office rental contract with a lessor dated 25/04/2019 and will be expired on 31/03/2022.

- Lease payment was charged from 01/05/2019 and to be paid in advance by the end of the preceding month. Commencement date is 01/05/2019 when asset is fully available and lease payment starts.

Application of IFRS 16 (converting from VASs to IFRSs)

IFRS 16 is effective for accounting period beginning on or after 01 January 2019. Earlier application is permitted for Company which applies IFRS 15 (Revenue from contracts with customers) on or before the date of initial application of IFRS 16.

When converting from VASs to IFRSs, the company is required to apply IFRS 16 from commencement date of the contract if the contract was entered into on or after 01 January 2019 (effective date of IFRS 16).

Below is the schedule of ROU and lease obligations incurred from above contract when applying IFRS 16.

(Prepared by Trang Nguyen)