Lease Premium

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November 27, 2016 at 7:12 pm #351971
scarletenergy
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Hi,Tutor..Can u explain me lease premium and its accounting treatment..
Im revising June 2015 past exam paper..3rd question in section B has operating lease premium..
November 27, 2016 at 9:05 pm #351987
MikeLittle
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The premium paid on an operating lease should be spread over the life of the lease

Without the question in front of me, if it were a 4 year lease, only one quarter of the premium would be recognised as an expense in each of the four years

Does that do it for you?
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