Subsequent measurement
You'll learn how to measure lease liabilities and right-of-use assets after initial recognition, a critical skill for IFRS 16 questions on your ACCA or CIMA exams.
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In this lesson
- 0:00 Lease liability subsequent measurement explained
- 1:21 Payments in advance versus arrears timing
- 2:51 Right of use asset depreciation methods
- 4:49 Worked example payments in arrears
- 9:53 Worked example payments in advance
About this lesson
This session covers the subsequent measurement of lease liabilities using the amortised cost method, including how interest accrues and payments reduce the balance, plus the key difference between payments in advance and payments in arrears. You'll also explore how to depreciate right-of-use assets over the shorter of the lease term or useful life, and how to split lease liabilities between current and non-current in your statement of financial position. Two worked examples—one with arrears payments and one with advance payments—show you exactly how to calculate interest, track liability movements, and present your findings in the financial statements.
Duration: 13m
Transcript
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