- This topic has 1 reply, 2 voices, and was last updated 2 months ago by P2-D2.
- You must be logged in to reply to this topic.
ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>
20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>
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?
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.