Leases Flashcards
(5 cards)
1
Q
How to record a leased asset?
A
Initially record a right-of-use asset and a lease liability.
2
Q
What value of the lease liability will be recorded?
A
Recorded at the present value of the lease payments that are unpaid at the commencement of the lease which are due over the term.
3
Q
How will the right-of-use asset be recorded?
A
Measured as the value of the lease liability plus any lease payment made at the start of the lease term plus any lease arrangement fees.
4
Q
Do you depreciate a right-of-use asset?
A
Yes, in line with IAS 16.
5
Q
How long do you depreciate for?
A
If owned at the end of the lease (e.g. 10 years) then you would depreciate over 10 years.
