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Leases (IFRS 16) (1) Recognition and measurement of right-of-use asset Asset is leased for five years beginning on 1 January 2015. Five annual rentals of
Leases (IFRS 16) (1) Recognition and measurement of right-of-use asset Asset is leased for five years beginning on 1 January 2015. Five annual rentals of 10,500 will be paid in advance, beginning on 1J . Rate of interest implicit in the lease is 5.38%. Assuming this is an operating lease, what are the accounting entries as per IAS 17 & FRS AS 17 Operating Lease Total 2016 2017 2018 2019 2015 Rental expense IFRS 16 Leases Rate Present value of lease payments 5.38% Cash Factor Present value 0/01/2015Cash 01/01/2016 01/01/2017 01/01/2018 01/01/2019 Lease liability balancePayment InterestClosing balance 2015 2016 2017 2018 2019 Impact on profit or loss 2015 2016 2017 2013 2019 Total Interest expense October 2017 16
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