Case IFRS 16 Lease car contract

Because this is a quite frequently used type of lease it is good to get an understanding of how to apply IFRS 16 on a car lease. This includes all the detailed calculations in spreadsheet examples (including Excel functions used) needed to record the correct entries.

The case:

Contract commencement date: 27/02/2017
Lease term: 48 months
The lessor’s investment in the car is EUR 20,872.33
The residual value of the car is EUR 12,112.00
The monthly lease payment … Continue reading

Simple case IFRS 16 Leases – Fixed payments depending on an index and rent free period – Last part

The first part of calculations and background information for the simple case IFRS 16 Leases is dicsussed on the web page listed here.

Simple case IFRS 16 Leases – Fixed payments depending on an index and rent free period

We will not repeat every quarterly payment/journal entry. However the quarterly payment as at 1 December 2015, the year-end financial closing entries and the indexing as at 1 March 2016 will be discussed here.

Qtr payment 1 December 2015:Continue reading