LEASE Flashcards
1
Q
Lease liabiltiy to be debited in finance lease for a year
A
Lease liabiltiy in finance lease is equal to present value of the lease for that year
2
Q
Lease expense per year
A
Lease expense per year is sum of AMort exp+INterest exp.
3
Q
Interest calculation in finance lease
A
Interest calculation in finance lease is done by using imputed rate on the carrying vaalue for each year.
4
Q
AMORTISATION PERIOD if asset not transferred to Lessee
A
Lower of useful life or Lease term
5
Q
ROU ASSET
A
ROU Asset = lease liability+ Initial direct cost+ adv payment
6
Q
A
