Page 147 - F2 Integrated Workbook STUDENT 2019
P. 147
Leases
2.2 Subsequent treatment - Lease liability
Add the interest charge implicit in the lease and reduce by cash payments
(A.K.A amortised cost).
Opening Interest (at % Rental payment Closing
balance implicit in lease) balance
Year 1 X X (X) X
Year 2 X X (X) X
Dr Right-of-use asset Dr Lease liability
Cr Lease liability Cr Cash
Dr P/L (finance cost)
SOFP
Cr Lease liability
139
