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Dear Mike
I have been battling with leases that are not coterminous with financial year.
For instance, if the accounting year ends on 31st December and they enter into a finance lease on 31st of march, how do we account for the current and non-current liabilities?
You have to work it out!
You’ll need to find the appropriate amount of interest accrued from last installment to the year end and then from the year end until next installment
Work out the interest for, say, half a year (6 monthly installments) and then time apportion as appropriate
Is that any clearer?
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