Post-billing: Rent/Interests Advice: You are looking for the value of the lease 18 months after the start of the lease. It is advisable that you expand your lease table to have two separate “c/fwd” balances – the balance at the end of the fiscal year (March 31) and the balance at the end of the rental year (September 30). If the contract contains separate elements, the tenant must assign the consideration indicated in the tenancy agreement as follows: I paid in advance this expense on the lease operating on the book entries for the lease premium. A customer enters into a five-year contract with a supplier to transport goods in refrigerated trailers. The volume indicated in the contract requires the use of ten trailers on the dates specified in the contract. Trucks and trailers are only available for pick-up and delivery interrogation at the customer`s home. The supplier has the option to replace other trucks and trailers throughout the period. The supplier would benefit economically from the right to free substitution of the devices. Thank you for this wonderful article. Just a little question about calculating the example. Why did you include the interests and include them in the alleged liability? In your other example of leasing, the share of interest is always only in the p/l and is never part of the responsibility. Can you explain why? According to IFRS 16, the impact on profit or loss in year 1: OK guys, sorry not to respond! If you adopt IFRS 16 from IAS 17, you must indicate the balances as if IFRS 16 had always been taken over. This means that you must cancel all items according to IAS 17 and book entries according to IFRS 16.
It also refers to previous periods. And if you do, reserve the cumulative adjustment when opening the winnings (depending on the approach you choose, whether modified or complete). If you can tell me how you have already accounted for business leases and how deferred liability was born, I will show you the positions. In the meantime, here is the article on the move to IFRS 16. – you`ll see how I made the adjustments (reversing the “old” numbers and booking “new” numbers). P. Thank you again for your simplified explanations. However, I have only one question, given that I am the financial office of the First Bank of Somalia, whether we have already counted the lease as an effort; Do IFRS have the right to change our records? Hello I want to know how to calculate the lease liability and the right to use the asset with the following conditions: a) annual escalation of 8% b) 29 months left of a 5-year lease.