Calculating the Right of Use Asset Value - IFRS 16

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mahmoud.algindy
Posts: 1
Joined: 12 Jul 2019, 21:05

Calculating the Right of Use Asset Value - IFRS 16

Post by mahmoud.algindy »

Dears, Good Day to all
I am new here and did not practice IFRS well.

I have here a case and I am not able to solve, still my mind did not catch how I can calc. the Right of use Asset Value.

On 23 Mar 2019 the company signed a Capital lease agreement and the info as per the below:
Car Cash Price 131,050.00
Down payment % 10
Down payment Amount 13,105.00
Lease Margin 44,819.64
Lease length (Years) 4.00

Repayment Type (Monthly)
Monthly Installment 3,390.93
1st Installment Date 27-May-19
Residual Value 0.00
Yearly Interest Rate 29.31% (Written in the Agreement)
Insurance for the Full period 26,157.60
Admin Fees 1,179.46
*
Requirements
Calc. the Following
Right of Use Asset
Lease Liability
Monthly Installment
Monthly Interest
Monthly UOA Depreciation
What you will do with the Lease margin?
Record any required entries:
Record the Entries required for March 2019
Record the Entries required for May 2019 and Jun 2019

Thanks so much
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Marek Muc
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Posts: 3228
Joined: 15 Oct 2018, 17:21
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Re: Calculating the Right of Use Asset Value - IFRS 16

Post by Marek Muc »

No worries, recognition and measurement of leases is covered in our knowledge base, there are also excel examples that you can adjust to your case and come back with specific questions, if need be.
What you will do with the Lease margin?
what do you mean by lease margin?
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