Hi sir, can you tell the answer for this?
X ltd is a lessee who has entered into a lease agreement with Y ltd lessor. X ltd has paid a refundable security deposit of $ 5 million at the inception of the lease. How will this $ 5 million be accounted for in X ltd`s books of accounts?
Option A: Include in its ROU calculation.
Option B: Expense it off in the year in which it has been paid
Option C: Shall be accounted as a Financial Asset as per IAS 32
Option D: None of the above.
Ask the Tutor ACCA FR
IFRS 16
Hi,
How do you think it will be treated? Have a guess and then I can tell you if you are correct or not. Have a look at the class notes as the answer should be there. Think about when the payment is made.
Sign in to reply to this topic.