Page 103 - Microsoft Word - 00 IWB ACCA F7.docx

Leases

To calculate the lease liability and right-of-use asset entities must establish the length
of the lease term.

The lease term comprises:

 Non-cancellable periods

 Periods covered by an option to extend the lease if reasonably certain to be
exercised

 Periods covered by an option to terminate the lease if reasonably certain not to
be exercised

Illustrations and further practice

Now try TYU 1 from Chapter 9.

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