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Ask the Tutor ACCA FR

Onerous lease

GAGreen Activist11y ago
In case of onerous lease what amount should be recognised as provision i.e Total of presnt value of future rentals Or Total of presnt value of future rentals less present value of any likely/probable future subletting rentals?
MikeLittleMikeLittleTutor11y ago#1
Total present value of rentals The income from any likely / probable future sub-lettings is not certain enough to be treated as "virtually certain" and should not therefore be recognised Ok?
GAGreen Activist11y ago#2
Would Provision for onerous contracts be recognised as current or non current liability?
MikeLittleMikeLittleTutor11y ago#3
It depends over what period the onerous contract stretches!
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