[pdiasova]

Hi
According to Kaplan book the negative goodwill is never capitalized.
It goes straight through P&L as income.

[pdiasova]

Hi
I don’t understand why you capitalized the lease if there is clearly stated that the lease is an operating lease, so the accounting treatment should be as following (taken from ACCA website)

Accounting treatment for operating leases
The accounting treatment for an operating lease is straightforward for both the lessor and the lessee. The lessee has incurred an operating expense, so the lease rental payable is written off in the profit and loss account. The lessee has to disclose in the notes to the accounts the amount charged in the year and the amount of the payments to which the entity is committed at the year end.

The lessor has earned revenue from renting out the asset and accordingly recognises the lease rental receivable as income in the profit and loss account.

[Author]

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