Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

ACCA December Exams

Post comments & Vote in Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>

IFRS 16: Initial direct cost incurred by lessor (Finance lease)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 16: Initial direct cost incurred by lessor (Finance lease)

  • This topic has 2 replies, 2 voices, and was last updated 5 years ago by Son.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • September 1, 2019 at 10:07 am #544019
    Son
    Member
    • Topics: 7
    • Replies: 5
    • ☆

    Dear teacher and everyone,

    I have one question relates to intial direct cost incurred by lessor under IFRS 16. Do we capitalize intial direct cost into the finance lease receivable at initial recognition? Subsequently, do we amortize initial direct cost over lease term?

    Please help to answer and provide source of answer if any.

    Thanks all!

    September 3, 2019 at 9:16 am #544416
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7079
    • ☆☆☆☆☆

    Hi,

    Yes, as it is directly attributable then it would be capitalised.

    Thanks

    September 3, 2019 at 1:20 pm #544475
    Son
    Member
    • Topics: 7
    • Replies: 5
    • ☆

    Thanks for your help!

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • The topic ‘IFRS 16: Initial direct cost incurred by lessor (Finance lease)’ is closed to new replies.