Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › question is based on contents of IFRS 15 ans IFRS 16
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- March 18, 2019 at 7:05 am #509601
You have been approached by the director of Mschili Quaries, who have just signed a contract with Haul pack to lease a piece of equipment, for advice. The terms of the lease are as follows:
Cash price of the equipment K 12 000
Repayments payable every six months K 1 300 Term of the lease 5 years Effective rate of interest 6 %
Final year, 2 semester reduction in In-substance fixed lease payments K 240
Mschili Quarries entered into a non cancellable lease agreement with Haulpack Plc.
Required:
1. Prepare the following to reflect measurement and recognition in Mschili Quarries:a) Lease Liability Repayment Schedule for the period of the lease
b) Amounts to be reported on the Statement of Profit or Loss and Other comprehensive Income (after two years)
c) Amounts to be reported in the Statement of Financial Position (after two years)March 18, 2019 at 8:50 pm #509644Hi,
So what would you like me to do? I can’t answer the entire question for you. You need to work through the question and then if there is something that you cannot do or something that you do not understand in the answer, then I can help.
Thanks
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