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IFRS 16 Leases, SP > FV: Additional financing (Cr Financial Liabilities…

- - - - Dr ROU Asset, Cr Lease Liability
    - - Expense off systematically (accrual basis)
  - - - ROU Asset
        
        PV of lease liability unpaid + Deposit + Direct Cost + Provision
        for Dismantling
      - Lease Liability
        
        PV of lease liability unpaid
    - - ROU Asset
        
        Depreciation over useful life OR lease term (whichever earlier)
      - Lease Liability
        
        In Advance
        
        Opening Balance - Lease Payment + Finance Cost
        
        In Arrears
        
        Opening Balance + Finance Cost - Lease Payment
- - - - Derecognise Asset
      - Recognise Lease Receivable
    - - Initial
        
        PV of lease payment receivable + PV of unguaranteed residual
        value
      - Subsequent
        
        In Advance
        
        Opening Balance - Lease Receipt = XX + Finance Income
        
        In Arrears
        
        Opening Balance + Finance Income - Lease Receipt
    - - Lease term is a major part of the useful life
      - PV of lease payment is at least PV of asset
      - Has option to purchase at lower than market price
      - Specialised asset for use of lessee
      - Ownership of asset will be transferred at end of lease term
      - Control has been transferred (Conceptual Framework)
  - - - Continue to recognise asset
      - Recognise Lease Income
    - - Rental Income
      - Credited to P/L systematically on accrual basis
      - Depreciation of Asset
    - - When does not meet any Finance Lease criteria
- - - - Lease
        
        Dr ROU Retained
        Cr Lease Liability
        
        ROU = CA * (PV lease payment/FV)
      - Sell
        
        Dr Cash
        Cr Asset
        Cr Gain/Loss on Disposal
        
        Gain or Loss on Disposal = (FV-CA) * [(FV-PV lease payment)/FV]
    - - Lease
        
        Dr Lease Receivable
        Cr Other Income
      - Buy
        
        Dr Asset
        Cr Cash
  - - - Lease
        
        Recognise Financial Liability
      - Sell
        
        Continue recognise Asset
    - - Lease
        
        Recognise Financial Asset
      - Buy
        
        Not recognise Asset