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Hello,
When accounting leases under IFRS 16, how are the rent invoices accounted for? Should they be posted to PNL? What happens if there is a yearly amount received at the beginning of the year and monthly payments? Is the PNL adjusted through the lease accounting journals?
Thank you.
Regards
Paula
In the exam they are only going to ask about the year end position – they don’t test the boOk-keeping.
FYI:
Finance lease – cash received credited to net investment in lease account
Operating lease – normal accruals accounting for rental income
ANSWER GIVEN ONLY FOR EXAM PRUPOSES
In the exam they are only going to ask about the year end position – they don’t test the boOk-keeping.
FYI:
Finance lease – cash received credited to net investment in lease account
Operating lease – normal accruals accounting for rental income
ANSWER GIVEN ONLY FOR EXAM PRUPOSES
My question goes beyond exam purposes as I am facing this issue at work, and the syllabus does not cover that side of the lease agreement. Also, my company is the lessee not the lessor.
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