Leases

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April 28, 2019 at 3:45 am #514392
Ema
Member
- Topics: 73
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Sir,
There is a question regarding leases in bpp exam kit i.e Q#2.
They have asked for year-end 20X1 but they are deducting interest and instalment of 20X2 while calculating the liability of 20X1.
I am having confusion in this.
Thank you
April 30, 2019 at 8:57 pm #514645
P2-D2
Keymaster
- Topics: 4
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Hi,
They will be trying to work out the current/non-current element of the liability at 20X1. To do so you look at the final payment in the following period (20X2) and the number immediately to the right of it in the lease liability table is the non-current element.
Thanks
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