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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › IAS 17:leases
what is unguaranteed residual value ? how is its treatment ?
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
