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Hey!
I have been going through the ACCA study hub for FR and came to know that the analysis of Lease liability into current and non-current is not in line with the treatment made in kaplan study text. I will be really grateful if you could provide me any guidance regarding it.
Best Regards.Hi,
Our class notes and tuition videos cover how to split the lease liability into current and non-current liabilities.
What is the difference in what is on the ACCA Study Hub and the Kaplan Study Text?
Thanks
For a mid-year lease agreement, kaplan study text considers present year’s non-current lease liability as the subtotal (total lease liability B/F + time apportioned interest charge – interest payment made in mid-year) of the next year. To find the current lease liability, it subtracts non-current lease liability from present year’s total lease liability.
However, in ACCA study hub, they have simply considered the interest payment made in mid-year as the current lease liability.
Both the treatments, result in different answers. However, this is only the case for mid-year lease agreement i.e when the payments are made somewhere in between the year instead of at the very start or end of the year.
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