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.
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
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
This case is rather simple, fixed payments depending on an index and rent free period. Here are only included the journal entries to be made at the inception of the lease contract.
This contract comprises a
The lease contract has a lease term… Continue reading