IFRS 16 is the new accounting standard for leases. On this topic, we will discuss the following:
- The optional application of operating leases on the part of the lessee,
- The recognition of a right of use asset and a lease liability, and
- The measurement of a right of use asset lease liability
Our tutorial also consists of the accounting entries for lessees and the required disclosures under IFRS 16 in the statement of financial position, statement of profit or loss, and statement of cash flows. Practical problems are also added to the course so you can better understand the new accounting standard for leases.
Almost all of the concepts and terms used in this standard are covered and explained here, so irrespective if you are familiar with lease accounting or not, this course will help you to gain a full understanding from the very basics.
Concepts like lease definition, present value of lease payments, implicit rate of interest in the lease, guaranteed residual value, minimum lease payments, etc., are explained very clearly.
I have made this course so comprehensive so you can have a very clear understanding of all the terms and concepts used in IFRS 16.
Requirements:
- Knowledge of basic accounting and financial reporting
- Understanding of IAS 17 is a plus but not required
God bless you always on your studies!
Course Content
Lessons
Introduction to the New Lease Accounting Standard – IFRS 16
Identifying a Lease
Finance Lease Model for Lessee
Measurement of Right of Use Assets
Measurement of Lease Liability
Presentation of Right of Use Asset
IFRS 16 Disclosure Requirements for Lessees
Practical Illustrations – Problems
Financial Lease Example / Lease Accounting Example – Transfer of Title to Lessee
Financial Lease Example / Lease With a Bargain Purchase Option
Financial Lease Example / Lease With Guaranteed Residual Value
Financial Lease Example / Lease With Unguaranteed Residual Value and Required Restoration Cost
Accounting for Purchase of Leased Asset
