Hi,
Can someone help me with the journals for finance component and capital component lease rental receivables.
Lease Receivables a/c 10,000
To Lease Asset a/c 10,000
after de-recognising the asset like above, I have done the below
Lease receivables a/c 10,000- reconciled this from above entry
Add: Any initial costs 0
To Total Lease Income a/c 10,000
In the above entry, I have recognised the entire PV of Lease receivables which includes Interest+Capital. This is the same PV of Lease payments in Lessee’s book (Current liability+Non-Current liability= 10,000)
My question is, can I recognised the total lease Interest + Capital in SPLOCI-PL Cr.? Then when the cash payments are received, I will credit receivables e.g., 200 Interest+ 800 Capital elements annually.
Cash a/c 1000
To Lease Receivables a/c 1000- until the balance is Nil.
Or should I classify interest received and capital received separately? If so, can you please pass on the entries?
Txs.
IFRS 16 Finance Lease in the books of Lessor
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- Posts: 15
- Joined: 18 Apr 2020, 15:44
Re: IFRS 16 Finance Lease in the books of Lessor
Hi, an example with entries is available here:
https://ifrscommunity.com/knowledge-bas ... ance-lease
to be honest, I don't understand your question, but hopefully the example above will help you
https://ifrscommunity.com/knowledge-bas ... ance-lease
to be honest, I don't understand your question, but hopefully the example above will help you