IFRS Question 006: Accounting for own-use contracts under IFRS 9 Our company produces metal products and we buy lots of raw materials, like lead, nickel, copper iron. We often enter into contracts for future delivery, for example, to purchase 10 tons of nickel with delivery in 6 months. An executory cost is any expenditure not included in the minimum ongoing payments associated with a lease.The lessee reimburses the lessor for any executory costs incurred by the lessor. Examples of executory costs are property taxes, insurance, and maintenance expenses. Related Courses. Accounting for Leases Service contracts that do not meet the definition of a lease will continue to be accounted for as an executory contract. Similar to existing guidance, IFRS 16 specifically excludes leases to explore for or use oil, natural gas, and similar non-regenerative resources. IFRS 16 defines a lease as . a contract