Question
On 1 January 2019 a company that prepares accounts to 31 December enters into a five-year lease of a machine from a developer. Lease payments
On 1 January 2019 a company that prepares accounts to 31 December enters into a five-year lease of a machine from a developer. Lease payments are 50,000 per annual, payable at the end of the year. The rate of incremental borrowing rate is 3% per annual. Explain how this lease should be accounted for by the lessee in accordance with the requirements of IFRS 16
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
