IFRS 16 | Leases | Part 2 | IFRS | SBR | FR | ACCA | ICAEW | Luqman Rafiq скачать в хорошем качестве

IFRS 16 | Leases | Part 2 | IFRS | SBR | FR | ACCA | ICAEW | Luqman Rafiq

This is the second video of a series of videos on IFRS 16: Leases by ‪@LuqmanRafiq‬. In this video accounting, some aspects of accounting in Lessee's books and some aspects of the accounting in the books of Lessor is discussed. Under IFRS 16 Leases, lessors are required to classify leases as either operating leases or finance leases. The classification of a lease as a finance lease or an operating lease will determine how the lessor accounts for the lease. For finance leases, lessors recognize a receivable for the net investment in the lease and an associated deferred income. The receivable is measured at the present value of the minimum lease payments, using the interest rate implicit in the lease. The deferred income represents the difference between the net investment in the lease and the amounts received from the lessee. The deferred income is recognized as income over the lease term. For operating leases, lessors recognize lease income over the lease term on a straight-line basis. This means that the lessor recognizes an equal amount of lease income over the lease term. The lessor does not recognize any assets or liabilities associated with operating leases on the balance sheet. In both cases, lessors are also required to disclose certain information about their leases in their financial statements, such as the total lease income, the lease payments, and the maturity of the lease liabilities. Overall, the new IFRS 16 Leases accounting standard will result in lessors recognizing more assets and liabilities on their balance sheets for finance leases, which will provide a more accurate picture of their financial position and performance. For operating leases, lessors will recognize lease income over the lease term on a straight-line basis which will provide a more accurate picture of their income statement. The lecture is delivered during the Online Live Batch for ACCA Strategic Business Reporting ( SBR) for June 2023 session. For more lectures you can visit our website www.escribiracademy.com or you can contact us on +923458287222. #acca #sbr #ifrs #ifrs16 #leases #lessee #accounting #scopeofifrs #strategicbusinessreporting #accasbr #luqmanrafiq #escribiracademy #financialreporting #corporatereporting #icap #icaew