LESSEE ACCOUNTING - LEASE PAYMENTS MADE IN ADVANCE (IFRS 16)

[@dunkotox]

best explantation in the Internet, so far!!! Thank you !!!

[@kugblenuben2084]

I love your explanation

[@kofiohenesasu4765]

Good morning Your is good, and kindly do more on the various standards.

[@mulugetaassefa7]

Well done !! good and clear approach keep it up!!

[@omaryothman8774]

Thank you Sir George, excellent lecture

[@miguelnsaka49]

THIS IS GREAT SIR, SHOULD BE NAMING YOUR VIDEOS IN PARTS E.G PART 1, PART 2

[@georgesaccountingtutorials]

Well noted, Miguel. Thank you!

[@annielehong9197]

Wow! Wow! and more wow's!!! I can't remember how many videos I watched, in search of "Right-of-use asset" calculation but none of them helped. May God expand your territory sir.👏👏👏 Keep it up!! As I subscribe!!!

[@PraiseHYMN725]

That was a perfect presentation. I going to look for the next

[@kobinaenos3477]

Good tutorials, keep it up.

[@richardfosuhene7347]

Very well understood. Keep it up sir

[@mreben9183]

Thank you so much sir this was very very helpful, highly appreciated 🙏💯

[@godfreyedwinmwale2477]

thank you sir for this, its really clear teaching

[@georgesaccountingtutorials]

You are most welcome

[@dorcasochil3261]

An exquisite presentation! Very good one Sir

[@georgesaccountingtutorials]

Many thanks!

[@nhansieu377]

fantastic explanation and really good hand writing

[@anthonyahuchaogu2331]

This video is so explicit ..thank you

[@solomonowomunigbon3487]

Thank u, quite simplified. Just an observation - under YE 2019 - the outstanding bal. is 13,337,500 {15,837,500 - 2,500,000}.

[@ekegodswill5130]

I thought about this and even had to message him for clarifications Thank you

[@cemsitmaz3165]

Thank you Mr. Savio great explanation !

[@tapiwamafuta8049]

Excellent explanation!

[@allennassali3724]

Very useful. Thank you so much

[@charleswanjau8188]

Good work sir

[@shiomwenyonamusha172]

Thank you very much. This really helped

[@supernatural_fanz]

I appreciate your efforts sir,ride on💪...but the amortization schedule for advance is different from that of arrears, pls corrext me if am wrong coz am actually confused😢

[@georgesaccountingtutorials]

Thanks for patronizing my channel. Yes, you are right! The amortization for "advance" is different from that of "arrears" because of the "timing" of lease payments. With the advance, lease payments are made before interest is calculated on the outstanding balance. On the other hand, with the arrears, interest is calculated on the opening balances before lease payments are made. I hope this helps.

[@attapoku4769]

Why was the annual lease payment for the 2018 year ignored in the subsequent measurement

[@georgesaccountingtutorials]

Thanks for patronizing my channel, Atta Poku. It is because the 2018 lease payment (made at the beginning of the year) had already been factored into the calculation of the initial lease liability and Right-of-Use Asset. Thus, subtracting it again will be tantamount to a "double treatment" of the 2018 lease payment. I hope this helps.

[@user-il2ej7gl3d]

I am failing to understand how you have calculated the annuity factor of 5.759.May you demonstrate on the calculator please

[@fasb25]

At 9:17 can you show me how the double entry will be? The cash increased and decreased in this transaction

[@jayadevsr5412]

Thank you,!!

[@ifeychrisonyejeme7954]

Thanks for the video. How do one account for the lease liability of a 5years contract with 2years prepaid at commencement date? How do you unwind the lease liabilities for the 5years ?.

[@putikeswarasudarsono]

Sir, thank you for the video, this is the only thing that answer my question so far. I would like to know, if in the first year you pay for, let's say two months rent, while maintaining the amount monthly annuity will it be recognised as and advance payment or a reduction in the lease liability principal? Thank you have a nice day.

[@georgesaccountingtutorials]

It will be recognized as an advance payment.

[@GUYJOSUA]

thanks sir foe this is very helpful...

[@hassanahmed2765]

thanks man, it helps a lot

[@cholamulubwa5946]

Well explained

[@mishawnroberts1662]

Presentation is excellent however what do we do if the lease is paid monthly in advance?

[@nellymotsa8290]

Thank you appreciated

[@studentsfinancemasenounive8049]

THANK YOU!

[@sharonmmary7291]

How did you get the Accumulated depreciation of 2019 which is 3,429,500?

[@georgesaccountingtutorials]

Since 2019 is the second year, I multiplied the annual depreciation charge of 1,714,250 by 2 to get the 2019 accumulated depreciation (i.e. 1,714,250 x 2 =3,429,500)

[@sharonmmary7291]

@@georgesaccountingtutorials thanks much

[@ellentechie-quansah7022]

Excellent

[@georgesaccountingtutorials]

Thanks

[@christiancobbinah9296]

I love it

[@georgesaccountingtutorials]

Glad to hear that, Sir

[@sumitchakraborty3370]

Sir.., Annuity payments can also be calculated as For Year 1-9 at PVAF 10%, (10-1YEARS)..

[@georgesaccountingtutorials]

Yes please

[@tuwiilikakulula9698]

I am still finding it confusing to understand your amortisation schedule sir, I could really use a bit more of explanation on the table.

[@georgesaccountingtutorials]

Hello Tuwiilika, thank you for patronizing my tutorial video and for your question. This amortization schedule applies exclusively to the case where lease payments are made in advance (that is, where payment is made at the beginning of the period). Where lease payments are made in advance, the first payment is recognized as part of the Right-of-Use Asset (AND NOT IN THE AMORTIZATION SCHEDULE). That is why no lease payment was recognized in the amortization schedule for the year 2018. I hope this helps.

[@michaelokai7424]

Please can u do a video on this but lease rentals are paid semi annually?

[@richardarhinful7346]

I think with the payment made in an advance, that amount should be deducted from the opening balance in the amortization schedule and interest should be charged on the outstanding balance before moving to the next year.

[@georgesaccountingtutorials]

Yes please...That's exactly what's in the video...Kindly check again

[@blommabsa1892]

I it should be ignored since it is present in the current liability of 14 397 500🤔.....we will subtract it after the payment has been made....I guess....but just think general I guess sir🤔

[@daviemunene]

you have really made it clear, was wondering how its done for payment in advance

[@ramyasri9522]

👍

[@salomeasubop5077]

Good evening Sir...thank you for this clear explanation. But then i still dont understand why the initial lease payment made in the beginning of the year 2018 was not recognized in the subsequent measurement as the lease amount didnt reduce as at 2018 year-end. I mean isn't the advanced payment supposed to reduce the liability just as its done for 2019? Please explain further

[@salomeasubop5077]

Oh i guess this is clear. Thank you

[@joselynnnassimbwa1269]

How can I like this video 2 times...😅

[@alialbalushi9787]

Hi sir Request you kindy explain how to do journal transaction in liability said As per we now right of use asset Transaction in will be Cr accumulated right of use asset Dr depreciation

[@johnsonbaryeh]

It's been deducted in annuity calculation. That's , instead of 10yrs he used 9yrs

[@blommabsa1892]

Thanks sir....but I have a concern, you used the initial lease payment of 2500 000....you then added it to the right of use asset....were you not supposed to ignore it since it is present in the current liability ?? I feel like you have double counted🤔

[@ifeychrisonyejeme7954]

It wasn't added to derive the lease liability. Remember when he computed the annuity, he used 9 years lease /rental payments instead of 10year as the first year's payment is already prepaid. This prepaid amount was what was added to the right of use asset.

[@kawukifelix5401]

Is The beginning the same as Payment in advance

[@tapiwamafuta8049]

Can you do a video on deferred tax consequences ofIRFS 16

[@georgesaccountingtutorials]

Noted, please

[@attapoku4769]

Why was the annual lease payment for the 2018 year ignored in the subsequent measurement