Lessor accounting
You'll learn how lessors classify and account for leases under IFRS 16, distinguishing between finance leases (where risks and rewards transfer to the lessee) and operating leases (short-term or low-value arrangements).
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In this lesson
- 0:00 Lessor accounting and lease classification
- 0:29 Finance lease indicators and recognition
- 2:01 Calculating net investment in lease
- 2:49 Worked example: Mack Company lease receivable
- 4:11 Statement of financial position presentation
- 4:39 Operating lease accounting and treatment
- 5:13 Disclosure requirements for lessors
About this lesson
This session covers the key indicators that determine lease classification, how to recognise and measure lease receivables, and how to account for finance income over the lease term. Through a worked example, you'll see how to calculate the net investment in a lease and split it between current and non-current assets on the statement of financial position. Essential for SBR, FR and Advanced Financial Reporting papers, this knowledge ensures you can correctly apply lessor accounting principles and handle disclosure requirements in exam and real-world scenarios.
Duration: 6m
Transcript
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