Leases - sale and leaseback Example (not at fair value) - ACCA Financial Reporting (FR)

[@japhetchiputire4551]

How dod you calculate the Right of Use of Asset and Lease Liability

[@opentuition]

Our tutors do not monitor questions here, so please ask in the Ask the Tutor Forum on our free website and the tutor will answer you.

[@MasterBepis]

Lease liability is calculated by multiplying the cash flow with the annuity factor, whilst the right of use asset is calculated by using the proportion of previous carrying value of asset. You can see how he does it here kzbin.info/www/bejne/rqrJeKShjJ1khsU

[@z.jz.j7254]

In the Kaplan book is not in detail if we are study simple like in book this topic enough or not study from book

[@ericwu3457]

how do you get the £364522 figure thank you!

[@antreasAnimations]

previoius video

[@Ricaurtetrujillo]

Great work, please tell me how to release the prepayment entry, thanks

[@mohamedelsherif3507]

The difference between fair value and sale price is consider to be prepayment so the entity added this amount to Right of use asset and allocate the right of use asset over the remaining useful life or lease term whichever is lower.

[@mariajnojules231]

The tutor said it. It is released over the life of the lease to match up against the lower rental payments

[@ChrisDsouza2003]

Hello. May I get any link to the social media handle of the teacher teaching here? With his permission? He teaches excellently well.

[@opentuition]

You can ask questions of the tutor in the Ask the Tutor Forum on our free website.

[@mehedikhan3959]

Why not pv of extra 1m to liability

[@sum_it_01]

You might be talking about 1M on 11M (excess from FV), it is the proceed received from the sell of an asset i.e. 11M which is already transacted in present value on the current transaction . so, there is no need to convert it into PV . Have a nice day😉!

[@shekujalloh551]

You deserve a monthly pay rise Chris😅❤