Leases - part 2
Taught by James Griffiths · AI tutor support included
Understand how to initially recognise and measure lease liabilities and right-of-use assets under lease accounting standards. This lesson walks through the process of calculating present values of minimum lease payments, recording double entries, and accounting for ancillary costs such as legal fees, using practical examples to illustrate the foundational mechanics of lessee accounting.
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In this lesson
- 0:00 Introduction to Lease Accounting
- 1:08 Recording Lease Liability
- 1:57 Recognising Right of Use Asset
- 3:00 Initial Measurement Double Entry
- 4:43 Example: Mary's Lease Agreement
- 6:27 Calculating Lease Term and Double Entry
- 9:03 Summary and Conclusion
About this lesson
Dive into the complexities of lease accounting with our expert guide on initial recognition and measurement. This video breaks down the critical process of recording lease liabilities and right of use assets, explaining the present value of minimum lease payments and how legal fees impact the overall valuation. Perfect for accounting professionals, this tutorial offers a clear path through the intricacies of lease agreements, equipping viewers with the knowledge to confidently navigate initial entries. Watch now to master the foundational steps of lessee accounting.
Duration: 10m
- Initial recognition of lease liabilities
- Right-of-use asset measurement
- Present value of minimum lease payments
- Lease liability and ROU asset double entries
- Incremental borrowing rate
- Initial direct costs in lease valuation
Transcript
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