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Lessor accounting – finance lease – ACCA (SBR) lectures

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  1. Hello Sir,
    If I could ask, in the example 4- Lessee accounting- the question was quite similar to the one discussed here- for the Lessor. In that question too, just like this one , the payments were made at the start of the year. There we used annuity due discounting because the payments were at the beginning of the year. Can I ask why are we not using it here?
    Thank you

  2. 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?

  4. 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.

    • 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.

      • 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

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