Leases - lessor accounting - part 1
Taught by James Griffiths · AI tutor support included
In this lesson, you'll learn how lessors account for finance leases under IFRS 16—a key topic for F2. You'll discover why most leases are treated as finance leases (with exceptions for short-term and low-value items), how to initially recognise a lease as a receivable at present value rather than a non-current asset,
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In this lesson
- 0:00 IFRS 16 leasing and lessor accounting
- 1:01 Basic assumptions and lease classification
- 2:10 Finance lease exceptions and operating leases
- 3:19 Finance lease receivable initial measurement
- 4:58 Subsequent measurement and amortised cost
- 6:19 Operating lease accounting treatment
- 7:09 Multiple operating leases on single asset
About this lesson
and how to measure it subsequently using amortised cost. The video also covers operating lease accounting, where the lessor retains the asset on their balance sheet and recognises rental income over the lease term. Understanding this distinction is essential for answering lease questions accurately and confidently in your F2 exams.
Duration: 8m
Transcript
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