Question
On 1 January 2019, a company which prepares accounts to 31 December enters into a five-year lease of a building. Annual lease payments are 40.000
On 1 January 2019, a company which prepares accounts to 31 December enters into a five-year lease of a building. Annual lease payments are 40.000 payable in advance on 1 January each in each year. The rate of interest implicit in the lease is 8% per annum.
Explain how this lease should be accounted for by the lessee in accordance with the requirements of IFRS 16.
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Financial Accounting
Authors: Pauline Weetman
8th Edition
129224447X, 9781292244471
