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Sir in IFRS-16 for eg the FV of leased asset is $80m, lease term is 4 years, useful life is 10 years and GRV is $65m, the asset carrying value at the end of the lease term is $74m & the asset will be transferred to lessee at the end of the lease term.
What will be the entry for recording the transfer of leased asset to lessee??
I assume you are leasing out under a finance lease.
Dr Cash (if they are giving you money
Cr Receivable (CA may be 0 at end of lease)
Balance (if any) to P&LDr PPE
Dr Lease liability (if any)
Cr Right of Use asset (if any)
Cr Cash (if any paid)Possibly a charge or credit to P&L
Possibilities are endless, but I wouldn’t think you would be asked to account for lessor and lessee in same scenario
KPMG’s lease handbook is useful:
In the meantime try and direct your questions and your understanding to specific exam questions that have been set
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