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Finance lease

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Finance lease

  • This topic has 0 replies, 1 voice, and was last updated 10 years ago by Phuong.
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  • Author
    Posts
  • May 27, 2015 at 4:41 am #249395
    Phuong
    Member
    • Topics: 4
    • Replies: 0
    • ☆

    Please help me to verify this problem about finance lease:
    1/1/x1: enter lease agreement
    deposit: 1.150 ( non refundable)
    installments: 4.000 pa/7 years in arrears
    cash price: 20.000
    interest rate:11%
    uselfull life: 4 year

    prepare: P&L/ BS
    answer:
    PL:
    – dep: 20.000/4= 50.000
    – finance lease: (20.000-1.150)*11%=2.074
    BS:
    – non current liability: 14.786
    – current liability: 2.138
    –> total liability= 16.924
    – assest held under finance lease: (20.000-5.000)=15.000
    —> total asset: 15.000
    —-> why for this transaction asset not equal liability???

    I was wonder about this issue, plz help me to figure it out.
    Regards,

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