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IFRS 16 Lease – implementation and lease incentive accounting

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 9 months ago by Stephen Widberg.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 13, 2020 at 3:11 pm #567999
    djfred
    • Topics: 1
    • Replies: 0
    • ☆

    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 400.000

    Depreciation rights of use assets 2018
    4.183.813 – 418.381 = 3.765.432

    Journal entry
    Depreciation costs 418.381
    @ right of use assets 418.381

    Detoriation lease liability 2018
    4.583.813 – 418.624 = 4.165.189

    lease liability 418.624
    Interest costs 91.676
    aan bank 510.300

    Now implementation of the standard in 2019??????
    Right of use assets 3.765.432
    Lease liability 4.165.189
    ????? 399.758

    Can somebody please help me with this issue?

    Kr,

    Freddy

    April 14, 2020 at 9:09 am #568178
    Stephen Widberg
    Moderator
    • Topics: 7
    • Replies: 1268
    • ☆☆☆☆☆

    HI Freddy

    Please can you tell me which exam question or example this relates to and I will get back to you.

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