IAS 17 Leases - summary

[@CPDbox]

Dear Fernando, thank you for your message. However, let me add - the credit in the journal entry should not be the credit in the P&L - it is basically property, plant and equipment and if there is some gain or loss, then it is P&L - but not sales. Also, in reality, non-current asset does not pass through lessors account quite often - lessor just passes cash to seller. So in fact, both cash and non-current asset are correct. In the summary, I just used simplification. Best regards, Silvia

[@beatricealkard4685]

Good

[@sokwanqa]

THANK YOU SOOOOOOOOOOOOOOO MUCH!!!!!!!!!!!!!!!! from South Africa

[@tlhorisoseshoma7554]

+Amanda Sokwanqa lol

[@claudiovolpe7599]

Hi silvia, as Fernando said previously, i do think too that the credit side should be accounted by a P&L (revenue) account. When the lesee pays the amounts, the cash account is debited closing the BS account debited before.

[@inambaig8844]

Thanks for the short lecture. such lectures are more effective to convey good and short intro...

[@mubbashirrehman8780]

Thank you so much silva..Respect & Love from Pakistan..

[@ilianabozukova2971]

Hi Silvia, thank you very much. I was trying to find a guidance on recognition on refurbishment cost for the premises rented under operating lease, lets say 5 years. Should we recognise the cost immediately (as refurbishment is necessary to be brought this office in working condition , should we spread them over 5 years or both treatments are possible.

[@thegadflypennsean]

MY MIND BOGGLED.

[@muhammedyousaf09]

thanks a lot silvia you have solved my major problem

[@mokgethoa6273]

I finally understand leaseback. Thank you.

[@lalithagurumurthy7248]

Very good summary. Thank you

[@kellylinda8678]

Hi Silvia! It is quite confused regarding to financial lease for lessor. In case, the entity has the assets that lessee wants to use. So how should I pass the entries? Based on my understanding, the initial recognition is Dr Lease Receivable Cr Fixed Assets. The subsequent entries are a) for interest income Dr Lease Receivables Cr Interest Lease Income, b) for the cash receipt Dr Cash Cr Lease Receivable. Is it correct?

[@randomn3sz]

so in subsequent measurement, would we be calculating depreciation using the expected useful life of the asset, or over the lease term? :S

[@samsungapple8790]

Which ever is lower

[@OussamaBoulares]

Thank you very much Silvia for this simplification

[@navychiefpastor]

Thank you from Michigan (USA)

[@alinurmohamed5304]

Thank you. It's SUPERB. You helped me understand the issue.

[@ksjusj3966]

thank you... from Sri Lanka...

[@sasazaesan]

Thank you so much! from Japan

[@JcVega]

Hi Sylvia, for Lessor cr entry on the initial recognition, the cash acct is credited as if you are buying the asset from a third party? I am quite confused. What if the amount that you paid to the 3rd party is not equal to the pv of (mlp+rv)? if not to a third party, where will the money go as of course it wont go to the lessee? so what if the leased asset is already used before and you decided to engage to a finance lease, example if it is a ppe, then the credit side will be its carrying amount? so what if the amount is different from the net investment, where we will charge the difference?

[@CPDbox]

Jacquelyn Camille Vega Dear Jacquelyn, valid comment. I have used a pure simplification here, as often, PPE does not even pass through lessor's accounts. But please, scroll below and see my explanation in the reply to Fernando Mazeo's comment. Thank you!

[@mstipich1]

+Silvia M. (of IFRSbox) Hello. It is in fact regular stuff that leasing comp.(Lessor) buys PPE according what Lessee needs and lease it to him, especially in industrial (corporate) sector where big machinery, trucks etc. are involved. In everyday life that includes VAT or sales tax etc. This is correct basic (or in your words: simplified) accounting entry to start with.

[@mazeof]

Dear Coleague, very nice an helpful video! I would only make a note on the initial measurement of Finance Lease for Lessor where the credit is Sales in the P&L insted of Cash. Best regards

[@jobayerhossain1860]

Thanks a lot Silvia for sharing this .

[@Iyoh101]

Question on minute detail. When is initial recognition? In IFRS 9 Financial instruments it is when the person becomes party to the contractual provisions of the instrument. Should that be the date of initial recognition?

[@CPDbox]

Lebo Rapuleng Well, standard IFRS 9 does not apply to leases, though. :)

[@Iyoh101]

I see IAS 17 it is. :)

[@usmanali-gk2zy]

very Informative Video thanks

[@krystall626]

nice summary Silvia, thank you

[@taimoorkhan-tv3rd]

wow great explaining Thanks you

[@irfanquadri5843]

Love your videos. It's so helpful!!

[@laila3798]

Many thanks!

[@a7mdsawy]

thank you very much for your efforts :) hello from egypt

[@alial-somaini2002]

Thanks a million!

[@josephngowoambroce418]

thank you from Tanzania

[@rubanratnam621]

could you please give me this side link ias12 summery

[@qasemalali9113]

when you will come back the new standard ?

[@BeingBusyisnotBusy]

Thank you so muchh....from india

[@swweetprincess14]

thanks for the lectures

[@keithdaure4387]

MANY THANKS!!

[@makgolo]

Thanks..repping BW

[@accountingdreamers...2306]

what an awesome!

[@gnchari1]

Thank you so much.

[@chitra8437]

Ind 41

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could you please give me ias1,ias2, ias7and all ias summery

[@ruwanlasantha5992]

Great..

[@manikantarajuvysyaraju2513]

Thank u

[@vampthbill13]

THANK U SO MUCH

[@sebuhituran]

helpful thanks

[@WithEngr._CKafera1]

GOOD EFFORT SISTER. THANKS

[@veiqaravibaledrokadrokabul9247]

Thanks very helpful

[@joelene336]

Thanks

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O p

[@nehakashyap1482]

thanku so much ....from india

[@ansumishra003]

Same here

[@Moonracker]

Thanks so much

[@asanka514]

Thank you very much