Leases - part 4
Taught by James Griffiths · AI tutor support included
Lease payments can be structured in different ways—either paid at the end of each period (in arrears) or at the beginning (in advance)—and each approach significantly affects how you calculate amortised cost, carrying value, and liability classification. This lesson breaks down the mechanics of both payment structures, showing you the exact journal entries and calculations needed to accurately reflect lease obligations on financial statements.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Introduction to Lease Payments
- 0:47 Instalments in Arrears Explained
- 2:30 Instalments in Advance Clarification
- 4:09 Calculating Carrying Value: Arrears Example
- 9:43 Revisiting Question: Instalments in Advance
About this lesson
Dive into the intricacies of lease payments and their impact on financial accounting in "Leases - part 4". This detailed exploration covers the differences between instalments paid in arrears and in advance, and how each method affects the amortised cost remeasurement, carrying value, and liability classification of leases. Learn the specific journal entries for each scenario and gain insights into accurately calculating the carrying value and splitting liabilities into current and non-current. Perfect for professionals seeking to deepen their understanding of lease accounting, this video offers valuable knowledge to enhance financial accuracy and decision-making.
Duration: 14m
- Lease payments in arrears
- Lease payments in advance
- Amortised cost remeasurement
- Carrying value calculation
- Current and non-current liability split
- Right-of-use asset journal entries
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the F1 Objective Test course
All 71 video lessons, timed mock exams marked instantly with an explanation for every question, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in