IFRS16: Abnormal Lease Term

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xmartin86x
Posts: 2
Joined: 23 Jun 2022, 12:24

IFRS16: Abnormal Lease Term

Post by xmartin86x »

Hi all,

Usually, lease terms are always 2 years or 3 years etc. I would like to know how do we account for an abnormal lease term (eg: 24/5/2021 to 30/6/2022)? In this case it's 13mths 7days.

Monthly lease invoice: $25,500
Balance lease invoice (24/6/2022 - 30/6/2022): $5,950

I do have a template and it's always fixed as monthly period so every month is $25,500. And setup as 14 periods/mths.
In this case i would have an excess balance of $19,550

How do i go about it?
And going forward how do i setup the template to account for this kind of "abnormal lease term".

Thanks!
Leo
Posts: 544
Joined: 05 Apr 2020, 22:31

Re: IFRS16: Abnormal Lease Term

Post by Leo »

Try 13 months and the part with 7 days, just add it on top at the end.
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