In the video explanation, the machinery is depreciated over 5 years (lease term). But the question mentions the lease type as finance lease, and the useful life is 6 years.
Shouldn't the asset then be depreciated over 6 years instead of 5 years as the ownership passes at the end of the lease term?
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Chp 18 Leases IFRS 16 Example 4 - Doubt on Useful Life of Asset
11mo ago#1No reference in the scenario to ownership passing at the end of the lease.
So, shorter of life and lease term
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