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IAS 17:leases

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › IAS 17:leases

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by MikeLittle.
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  • May 29, 2013 at 9:11 pm #127724
    ammus
    Member
    • Topics: 2
    • Replies: 6
    • ☆

    what is unguaranteed residual value ? how is its treatment ?

    May 29, 2013 at 10:03 pm #127728
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23335
    • ☆☆☆☆☆

    It’s not treated in any way – it is NOT a payment which the lessee is required to make

    So, in the lessee’s accounts the unguaranteed residual amount is completely ignored.

    A guaranteed residual amount is a payment that the lessee confirms to the lessor that, at the end of the lease, the lessor will achieve on ultimate sale of the leased asset and that is part of the minimum lease payments.

    But it won’t come up at F7. It COULD come up in P2

    Hope that explains it

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