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Leases

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Leases

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  • May 26, 2022 at 6:22 am #656468
    ilham9089
    Participant
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    For lease payments made in arrears but the first payment is in advance, what would be the value of the right of use asset and the initial lease liablity?

    May 30, 2022 at 5:31 pm #656891
    P2-D2
    Keymaster
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    You cannot just try to remember short cuts, you need to apply the knowledge to the question involved. The lease liability is the present value of lease payments and the right of use asset is then the same as this, adjusted for any direct costs.

    Thanks

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