Hello sir,
Was lately watchin' the lectures on Lease.Thereby you recognised ROU with P.V of lease Liab+Initial Direct costs and - incentive..
However the lease liab consisted only of the P.V
Why isn't the double entry matching?
Is it the case that initially DR ROU
CR lease liab @P.V of payments
And then
Deal with ROU seperately by
DR Initial direct costs (SOPL)
CR Incentive (SOPL).
Ask the Tutor ACCA FR
ROU and Lease liab.
Hi,
The entries would balance and I think you are missing the entry to bank for the payment of the initial direct costs. It would be easier to answer if you used numbers in your example.
Thanks
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