Lessor accounting – finance lease – ACCA (SBR) lectures
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Afternoon,
I have one general question about financial lease:
Say, Company A leases its vehicles to company B, per agreement payment is nearly zero (0) annually from company B, but company B has the obligation to purchase these vehicles in near future.
At the end of financial year what will be lease receivable for Company A? – not knowing the exact redemption date and price. What will be the treatment?
Sir can I ask what is the double entry for finance lease ?
Dr Recivable
Cr???
DR lease receivable CR PPE ( for derecognising an asset under finance lease as you have already transferred the risk and rewards to the lessee)
Finance Lease Accounting
1. Derecognise asset and record a receivable (@ net investment in the lease)
BUT, what happens the difference between the asset and receivable values? Should one recognise this difference as a gain / loss in the income statement???
Thanks in advance.
it is great lecture you make it easy and interesting.
many thanks
Great lecture. I find I understand this lecturer more if I go to the bottom right hand corner of the video, press the cog button and set playback speed to 1.5x.
Hi There,
Where is the Sale and leaseback lecture>
??
In Fr video ~~
Dear Sir,
What is the double entry for the Q example 6 – Finance Lease?
Dr Finance Lease – receivable 23,484
Dr ?????
CR ?????
I think the journal entries would be as follows!
Dr Lease Receivable
Cr Asset (derecognise)
The difference between the lease receivable and the derecognised asset (assuming there is a difference) will be either a gain or loss – and therefore Dr SPL if a loss & Cr SPL if a gain.
sorry but where is Sale & Lease back lecture?
Regards
A
Boom! found FR Videos. Thanks
Sorry, I am lost! where can I Find FR Videos?
Sir, why did we consider 400 in year5?
that was the unguaranteed residual value
The sale and lease back video is missing
Hi,
If you look within the FR videos then you can find them there. The notes and examples are the same.
Thanks
Afternoon,
On this occasion I noticed the video missing and the subsequent communication revealing the location of another relevant video to the SBR syllabus. Are there anymore lectures in the same scenario that we must find?
many thanks
Grant