Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Ofqual incorrectly recognised lease commitment from April, not March 2024, violating IFRS 16
Conclusion
However, under the terms of lease, Ofqual took the option to access the property so as to conduct its fit out works from 1 March 2024. Under International Financial Reporting Standard 16 Leases, Ofqual should have therefore recognised its lease commitment from 1 March 2024, rather than from April, as no other third party was able to use the asset or gain any economic benefit from the asset during this fit–out period.