Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 16 Lease – implementation and lease incentive accounting
- This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
- AuthorPosts
- April 13, 2020 at 3:11 pm #567999
Hi members,
I have a question regarding the implementation of IFRS 16. I am not english and hop you will understand my question
In 2018 we entered into a lease for a property. The problem is we will recognise it modified retrospectivly in 2019. We don’t now what the implementation journals should be as there was a lease incentive 2018 which lowered the right of use assets.
The PV of the property was 4.5 million and there was a lease incentive of 400K. So we should have booked if IFRS 16 was enforced in 2018.
Initial recognition 2018
Right of use asset 4.583.813
at lease liability 4.583.813
+
Cash 400.000
Right of use asset 400.000Depreciation rights of use assets 2018
4.183.813 – 418.381 = 3.765.432Journal entry
Depreciation costs 418.381
@ right of use assets 418.381Detoriation lease liability 2018
4.583.813 – 418.624 = 4.165.189lease liability 418.624
Interest costs 91.676
aan bank 510.300Now implementation of the standard in 2019??????
Right of use assets 3.765.432
Lease liability 4.165.189
????? 399.758Can somebody please help me with this issue?
Kr,
Freddy
April 14, 2020 at 9:09 am #568178HI Freddy
Please can you tell me which exam question or example this relates to and I will get back to you.
- AuthorPosts
- You must be logged in to reply to this topic.