- This topic has 3 replies, 2 voices, and was last updated 1 year ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Lease’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for September & December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Lease
Dear Tutor, in the question Farham (Sep 2018), one of issue is to sell Newwall which has been making substantial losses.
the expected costs from the sale are as follows:
future trading losses $30m, it included an early termination penalty of $6m for a leased asset which deemed surplus to requirements. this description makes me confused.
And its relevant answer: “the disposal group includes leased assets, the right of use assets deemed surplus to requirements will most likely be written off with a corresponding expense recognised in P/L”.
Would you please explain it by using double entry?
Many thanks
Lease asset
Dr P&L Cr Right of Use Asset
Lease liability
Dr Lease liability Cr Cash (6m) Balance to P&L
Many thanks
🙂