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Hello sir please
Mar 20 No 3a iii
I m not clearly following point.
ROU asset as a proportion of the previous carrying amount of the underlying asset.And then
The gain on disposal is limited to the gain on the portion of the asset sold recognising that Lerua has retained an interesr in the asset.please little explain for me.
Is it partly disposal???confusedHoping ….
Sale and leaseback principles:
1. Derecognise PPE at CA.
2. Recognise Right of Use Asset as proportion of the previous CA of the PPE (PVMLP/FV).
3. Recognise cash received.
4. Recognise Lease liability – PVMLP.
5. Balancing figure to P&L – no point in attempting to prove it.So – it is like a part disposal – the only difference is that the asset is renamed R of U asset.
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