- October 9, 2021 at 2:49 pm #637351kennigaraParticipant
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- Replies: 242
Hi Dear Tutor,I have confusion with the lease pay at the commencement date and lease pay made at the beginning of the year
Sometimes, I see the lease pays is made at the end and start or beginning of of the year which is understandable for me but sometimes I also see the payment is payable at the beginning of each year then there is a problem for me usually the amount is not recognised for the liability but added to asset.
example in kingfisher from kaplan says “the payment is payable at the beginning of each year”
example in opentuition says the first payment made on the first of january which is also in begining of each year.
why differently recognised?October 16, 2021 at 8:19 am #637785P2-D2Keymaster
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Not every question will be phrased in exactly the same manner and you need to read each specific scenario carefully to identify when the payments are made.
I’d need more detail about the aspect that you do not understand in the question mentioned above to help you further. I’d suggest first though that you go through the class notes to check that the examples/illustrations do not answer your query.
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