ACCA FR Chapter 12 Leases (IFRS 16) Questions
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I have just done the quiz, and worked really well for me, apart from question 1. I cannot figure, how they arrive at 70. I calcualated depreciation based on 7 months ok being 55,417, but then the rest of the amount in the answer as being the interest rate on 250.000. How was that calculated? Could you please specify?
Thanks.
vinogradovaa
380-130=250
We use this amount because the 250 is due immediately and then the interest is taken on the outstanding balance at the end of the year.
Please how was the balance b/f of $1,710,000,000 arrived at in the solution provided for question 6 ?.
Thanks.
I am sorry but the Opening Balance is not 1,710,000,000 But 10,000,000
the 17 is of the date that is 31 Dec’ 17
Please how was the balance b/f of $1,750,000,000 arrived at in the solution provided for question 4 ?.
Thanks.
Hi,
This might be too late.
There is an omission of space. It’s not a b/f of 1,750,000. It is actually the year ending ’17 – with 50,000.00 as initial entry. Same applies for the second row.
it’s not too late. you just saved me from a whole lot of confusion. I get it now. thanks. we need more of you here
How do I use the market discount rate on lease?
Apply the discount rate on the lease liability at year-end before deducting lease payments(if they’re paid in arrears)
Question 1- should depreciation not be calculated on the Right of Use asset valued at the present value of lease payments?
Can someone please clarify? Do I calculate interest after deducting payments or before? Thank you!
Same here. How r we going to know if interest will be calculated after we r before the installment
WHERE CAN I FIND SOLUTIONS,ANSWERS?
Good day. If payments are made in arrears we first calculate interest then deduct payments. If we pay in advance first we deduct payment then calculate interest. Hope you get it.
Question on 4 & 6. Aren’t the interest being calculated on the B/F AFTER cash deducted? This was in the lectures.
Thank you in advance!
It is only when payments are made in advance. However, if payments are made in arrears interest rate is computed on the bal b/f before deducting the payment.
Plz The 250000 used to charge 10% came from where?
380000-130000=250000