Synopsis:
In this recording, the speaker will address crucial questions that a lessee will ask on the accounting of contracts that are or potentially leases under FRS 116 Leases.
Episode 4: Changes in Leases
Modifications in leases during the lease term could complicate the accounting treatment.
The speaker will discuss and address the key accounting considerations through bite-sized examples covering the various scenarios that could be encountered by the Finance teams.
• Changes in lease payments
• Extension in lease term
• Increase in the scope of the lease at standalone price and not at standalone price
• Shortening lease term
• Reduction in the scope of the lease
Episode 5: Sale and Leaseback
Lessee said “I sold an asset and immediately leased the asset from the buyer (lessor). Is there any difference in accounting if the sale is at market terms, below or above market terms?”.
The speaker will highlight the changes and key areas to consider when accounting for a sale-and-leaseback transaction in relation to FRS 116. Practical and concise examples are used to illustrate the approach in identifying a sale-and-leaseback transaction, how to measure the initial right-of-use (ROU) asset and accounting for the sale of an asset at fair value, above and below fair value.
This series of recording consists of 2 parts. You can view the following episodes in FRS 116: Accounting of Leases – What are the Areas to Consider? (Part ONE).
Intended For:
Competency Mapping:
Learn anytime, anywhere.
