Lessor accounting : Asset initial recognition

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August 4, 2023 at 5:40 pm #689385
parag
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If the lessor leases a machine for 4 years and the PV of the lease payment is 5000.
Since the lessor has to recognize the PV of lease as Receivable in SFP is the below entry correct ?
Dr. Receivable ( Lease ) 5000
Cr. Machine ( held for lease) 5000
Thanks,
August 6, 2023 at 8:08 am #689437
Stephen Widberg
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Either:
1. She buys the asset prior to leasing it out:
Dr Receivable Cr Cash 5000
Or:
2. She transfers an asset already owned to the lessee
Dr Receivable 5000 Cr PPE (with CA) – any gain or loss in P&L
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