On 1 January 20X3 Rabbit acquires a new machine with an estimated useful life of 6 years
under the following agreement:
An initial payment of $13,760 will be payable immediately
5 further annual payments of $20,000 will be due, commencing 1 January 20X3
The interest rate implicit in the lease is 8%
The present value of the lease payments, excluding the initial payment, is $86,240
What will be recorded in Rabbit’s financial statements at 31 December 20X4 in respect of
the lease liability?
Sir could you please solve this sum i have tried solving this sum and checked the answer in textbook but i am unable to understand how to solve it so it would be a huge help if you could solve this sum
Ask the Tutor ACCA FR
LEASING IFRS 16
Hi,
Before I do anything you will need to show me what you have done with regards to your answer. I can then happily help explain what you may have done incorrectly.
I look forward to receiving your attempted answer.
Thanks
Sign in to reply to this topic.