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Leases (Accounting for Leases (Reassessment (Changes to fixed lease…
Leases
Accounting for Leases
Initial:
DR PPE
CR Lease liability
Subsequent:
DR Finance cost
CR Lease liability
DR Lease liability
CR Cash
DR Depreciation expense
CR Right of use asset
Measurement: Asset = Cost
Liability = Present value of lease payments (Discount Rate = Interest rate implicit in the lease)
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Disclosures
Enable users to assess the effect of leases on financial position, performance and cash flows
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Expenses relating to short-term, low value, or variable leases
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