Two Things to Know About Leases for IAS 17

In this article we’ll look at: Accounting treatment of leases by lessors (as well as lessees) How to account and discuss sale and leaseback transactions Lease Accounting Treatment – Lessor For Finance Leases De-recognises the tangible asset (and recognises resultant gain/loss). Lessor recognises a receivable equal to the net investment of the lease. Leased asset …

Read more

Finance Leases: What Appears in the Year End Financial Statements? IAS 17

Year-end lease liability

At the end of the accounting period, there will be a current and non-current liability associated with the company’s lease obligations.

The finance lease obligations will be made up of the capital balance outstanding plus any interest accrued but not yet paid at the end of the reporting period.

The current liability will be:

Read more