Was going through open tuition notes and m confused regarding the un guaranteed residual value as described in IFRS 16. Was working example 6 in open tuition notes and the question states like this :
Cherry estimates that the estimated residual value of the item of ppe is 2000 and the guaranteed residual value is 1600.00
Since the lease receivable should contain both the un guaranteed residual value and any residual value guarantees why was only 400 included in the lease receivable. Wouldn’t the 1600 be the guaranteed residual value and should be included as well?