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Lease qstn

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Lease qstn

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by cadhakan.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • February 28, 2021 at 4:23 am #612046
    cadhakan
    Participant
    • Topics: 71
    • Replies: 123
    • ☆☆

    Hi sir,

    I am quite confused regarding deposit because I see one qstn named ( FRESCO co june 2012) in which they had leases but payable in arrears and in that qstn also include deposit 2000 which they paid on 1april 2011 my qstn is that they deduct 2000-25000cost of purchase does it gives me balance b/d 23000.

    But I see in some qstn they deduct deposit while in other qstn they don’t deduct deposit

    Like my previous qstn which I asked in new thread the question name is block co Sec b qstn They didn’t deduct deposit why ??
    Can you please explain me the reason behind this. Thank you sir in advance

    February 28, 2021 at 11:22 am #612107
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    Hi,

    You need to read each question very carefully, as when you are given the present value of future least payments then the deposit is not a future lease payment and will therefore already have been deducted.

    If you are given the present value of minimum lease payments then the deposit will not have been deducted already and so will need to be deducted in the lease liability calculations.

    Thanks

    February 28, 2021 at 12:35 pm #612114
    cadhakan
    Participant
    • Topics: 71
    • Replies: 123
    • ☆☆

    Thank u sir now it makes me sense. Thanks a lot for solving my doubt.

    Have a great day

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