IFRS

A company will lease equipment, starting December 31 year 0. Lease payments are paid one year in advance. The lease contract is for five years (year 0-4), with a final payment performed at the end of the lease term, December 31 year 4. Use the solution supplement and the factors presented below to show the accounting of the lease transactions, in line with the rules for financial lease. 0 1 2 3 4 400 400 400 400 0 Year Prerequisite Lease payments (in advance 31/12) Guranteed residual value (payable 31/12) Interest Depreciation 4 years, 25%/year Calculation, year PV-factor 800 5,0% 5,0% 5,0% 25% 25% 25% 5,0% 25% 3 0,8638 0 2 4 1 0,9524 1,0000 0,9070 0,8227