Lessor accounting – Finance lease – Remaining balance of asset (IFRS 16)

Hi there,

Under a finance lease (lessor accounting), a lease receivable is recognised equals to the net investment of the lease (IFRS 16 explanation stops here) and it seems that there may be a balance of carrying amount of the asset.

Tried to search online for an exact answer but the closest answer was to derecognise the asset (which doesn’t answer the question at all).

My doubt is how is this balance of carrying amount of the asset is accounted for, for example,
(1) derecognise partly (i.e. the net investment in the lease), then is the remaining balance to be depreciated over the useful life of the asset?, or
(2) derecognise in full, then is the remaining balance (gain/loss) recognised in profit or loss?

Many thanks!