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Hi Mr. Widberg,
Hope you’re well. I want to confirm if the manufacturer or dealer lessor aspect of IFRS 16 is examinable? The syllabus is not very explicit as it just says “Discuss and apply the accounting for leases by lessors”.
It’s not discussed in the OT notes and also the Kaplan study text so am I right to assume that it is not examinable?
Or is it possible that if it somehow pops up in the exam it would not be worth much marks?
I suppose he could bring it up, but not worth learning loads of rules. Apply basic leasing and common sense.
EG
Company makes car – cost 100 normal selling price 130 lease instalments if customer wants to lease 4×50=200
At start of lease
Dr Lease receivable 130
Cr Revenue 130Then deal with as a normal lease. Finance income over term of lease will be 200-130=70. You would be given interest rate in exam.
🙂
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