IAS 17 (2)

Hi Mike

After all the writing i did i forgot to give you the question numbers :D.( I dont know where CLean came from in the link)

In the model answers for june 13 it states that the £37m should be used which im assuming is wrong?

And in Jun 15 it states depreciation based on the Higher CV

June 15 Q2 – Transaction occurred Dec 14 with y/e 31 march 15

(Next year, of course, it will be based on the lower of fair value and present value of minimum lease payments)

June 13 Q3B – transaction occurred last day of the year.

(If the asset is sold and leased back on the last day of the financial year, then depreciation for that year just ended should be calculated on the original cost.)

And the answer you gave makes sense

Thanks