Page 434 - F2 Integrated Workbook STUDENT 2019
P. 434
Chapter 19
Example 6.4
Extract from Statement of profit or loss year ended 31 December 20X1
$
Depreciation (($31,552 + $3,000)/3) (11,517)
Finance cost (W1) (1,578)
Extract from Statement of financial position 31 December 20X1
$
Non-current assets
Right-of-use asset ($31,552 + $3,000 – $11,517) 23,035
Non-current liabilities
Lease payable (W1) 14,287
Current liabilities
Lease payable ($23,130 (W1) – $14,287) 8,843
The finance cost and lease liabilities are best calculated using a lease liability
table, starting with the initial value, charging interest and deducting payments as
below.
(W1) Balance Interest Balance
b/f @ 5% Paid c/f
31 December 20X1 31,552 1,578 (10,000) 23,130
31 December 20X2 23,130 1,157 (10,000) 14,287
(NCL)
Note that the non-current liability is still calculated as the balance outstanding
immediately after next year’s payment has been deducted.
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