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Thanks chris for the excellent method of teaching,and for the comforting ,it is a loaded topic
Appreciate it,:)
In the case of sales of $11m:
If we amortize $8.72m over 10 years at $1m payment p.a, at the end of 10 years, there is still lease liability of $1.63m, so is it correct? What should we do?
Hi Chris, I got question regard of the amount of the right of use asset.
As I read through other resources. We must add the prepayment figure into right of use amount if the proceeds is below than the fair price. Which is 6,486,257 plus additional of 1M. ( a payment made /before the commencement date)
Dear sir
For the first scenario, proceed less than FV
May I know the impact if I don’t know Dr prepayment but directly DR liability as the second scenario?
Or I can actually do that by Dr the balancing figure in liabilities