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Leases

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Leases

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Stephen Widberg.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • October 31, 2019 at 3:41 pm #551298
    alikhakar
    Participant
    • Topics: 186
    • Replies: 79
    • ☆☆☆

    In lessor accounting of operating lease, i read somewhere that we recognize a receivables with undiscounted lease income and a corresponding credit to deferred income.
    And then as the cash is received, receivables are debited and deferred income is reduced on a straight line over the lease term

    Is that correct ?
    Or we just recognise rental income as
    Dr. Cash Cr. Lease income over the lease term?

    November 1, 2019 at 7:51 am #551330
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3441
    • ☆☆☆☆☆

    Never heard of that.

    Just, as you say:

    Or we just recognise rental income as
    Dr. Cash Cr. Lease income over the lease term?

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