Page 135 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Leases

Financial lease liability workings

Lease payments in arrears

Opening Interest Lease payment Closing
balance balance

Year 1 X X (X) A

Year 2 X X (X) B

Current liability = A–B

Non-current liability = B

Lease payments in advance

Opening Lease Sub–total Interest Closing
balance payments balance

Year 1 X (X) X X A

Year 2 X (X) B

Current liability = A–B

Non-current liability = B

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