Lease accounting with an interest-free deposit
Details for lease accounting
Let us assume the following details for lease accounting:
Lease start date: 1-Apr-2019
Lease end date: 31-Mar-2024
Lease payments: Rs. 2,75,000
Lease Deposit: Rs. 3,00,000
Payment frequency: Annual – payable at the end
Incremental borrowing rate: 9%
Right-of-use
Recognition of Lease liability
Amortisation of Right-of-use
Finance cost
Interest free deposit
Imputed interest income
Amortisation of Right-of-use
Trial balance
Profit and Loss Account
Balance Sheet
What is the difference between operating lease and finance lease?
Lease accounting, lease period extended after year 1 – Journal entries
Lease accounting, interest-free deposit lease period extended after year 1
Lease accounting Journal Entries for Modification
Journal entries for lease accounting
Operating lease vs financing lease
Lease Accounting as per IFRS 16 vs. AS 19
How to compute right-to-use asset
How to determine the lease term as per the standard
How to separate the components of a lease contract
How to identify a lease contract as per the lease accounting standard
Lease Accounting as per Ind AS 116
Presentation & Disclosure – lease accounting standard
What is the new lease accounting standard
Lease Accounting as per IFRS 16
Extracts from Annual reports – Lease Accounting
Exemptions that can be availed in lease accounting
