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Lease payment components

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Lease payment components

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
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  • March 6, 2018 at 7:28 pm #440790
    abdulahad92
    • Topics: 17
    • Replies: 36
    • ☆☆

    Dear sir, going through your video of lessor accounting for finance lease I noticed that you did not take guaranteed residual value as part of lease payment. However (as much as I know seen in the standard IFRS 16 [pg. A740]), lease payment also include guaranteed residual value.
    That means total residual value guarantee is taken in to account to compute lease payment. But your solution only contains unguranteed.
    I am confused as I did take full residual value guarantee.

    Kindly comment.

    Regards

    March 7, 2018 at 10:20 am #440946
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6317
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    Hi,

    I was always under the impression that it was the unguaranteed residual amount that was included in the gross investment in the lease but it may appear otherwise. I’ve also consulted the BBP study text, which is of the same view as myself and in contrast to the standard. All very odd and I’ll look into it further.

    Thanks

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