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    Solution Ifrs 16 Quiz

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    ShehrozST
    The document contains two solutions for calculating rental amounts for assets leased under finance leases. Solution 1 calculates a rental of 309,029 per year for a lease with a fair value of 1,000,000. Solution 2 calculates a rental of 376,249 per year for a lease with a fair value of 1,200,000. Both solutions include schedules of rental payments and interest over the lease terms, as well as extracts of the balance sheets of the lessor and lessee companies showing their accounting for the finance leases.

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    Solution Ifrs 16 Quiz

    Uploaded by

    ShehrozST
    755 views6 pages
    The document contains two solutions for calculating rental amounts for assets leased under finance leases. Solution 1 calculates a rental of 309,029 per year for a lease with a fair value of 1,000,000. Solution 2 calculates a rental of 376,249 per year for a lease with a fair value of 1,200,000. Both solutions include schedules of rental payments and interest over the lease terms, as well as extracts of the balance sheets of the lessor and lessee companies showing their accounting for the finance leases.

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    Solution ifrs 16 quiz

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    The document contains two solutions for calculating rental amounts for assets leased under finance leases. Solution 1 calculates a rental of 309,029 per year for a lease with a fair value of 1,000,000. Solution 2 calculates a rental of 376,249 per year for a lease with a fair value of 1,200,000. Both solutions include schedules of rental payments and interest over the lease terms, as well as extracts of the balance sheets of the lessor and lessee companies showing their accounting for the finance leases.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    755 views6 pages

    Solution Ifrs 16 Quiz

    Uploaded by

    ShehrozST
    The document contains two solutions for calculating rental amounts for assets leased under finance leases. Solution 1 calculates a rental of 309,029 per year for a lease with a fair value of 1,000,000. Solution 2 calculates a rental of 376,249 per year for a lease with a fair value of 1,200,000. Both solutions include schedules of rental payments and interest over the lease terms, as well as extracts of the balance sheets of the lessor and lessee companies showing their accounting for the finance leases.

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    © All Rights Reserved
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    of 6

    Solution 1:

    Mandhan Limited

    Calculation of rental:

    Fair value 1,000,000


    Downpayment - 50,000
    950,000
    IDC 84,500 Paid by lessor to be recovered from lessee
    Recovery 1,034,500
    PV of Residual value - 75,754 115,000/1.11^4 100% as lessor will expect entire recovery
    Amount for rental 958,746

    Factor 3.102
    Rental 309,029

    Schedule:
    Year Opening Interest Principle Closing
    2018 1,034,500 113,795 - 195,234 839,266
    2019 839,266 92,319 - 216,710 622,556
    2020 622,556 68,481 - 240,548 382,008
    2021 382,008 42,021 - 267,008 115,000

    Date Particulars DR CR
    NIFL 1,034,500
    Jan 1, Cash 50,000
    2018 Cash 84,500
    Asset 1,000,000

    Date Particulars DR CR
    Cash 309,029
    Dec 31,
    Int income 113,795
    2018
    NIFL 195,234

    Date Particulars DR CR
    Cash 309,029
    Dec 31,
    Int income 92,319
    2019
    NIFL 216,710

    Date Particulars DR CR
    Cash 309,029
    Dec 31,
    Int income 68,481
    2020
    NIFL 240,548

    Date Particulars DR CR
    Cash 309,029
    Dec 31,
    Int income 42,021
    2021
    NIFL 267,008

    Balance Shee Extracts


    Note
    Non - current assets
    Net investment in finance lease 16 622,556

    Current Assets
    Net investment in finance lease 216,710

    Notes to the financial statements

    Note
    16 Net investment in finance lease

    16.1 Maturity profile:

    2019 309,029
    2020 309,029 `
    2021 424,029 ( 309,029 + 115,000 )
    1,042,087

    16.2 Reconciliation:

    Rentals (309,029 x 3) 927,087


    RV 115,000
    1,042,087
    Interest not yet accrued - 202,821
    839,266

    Chandan Limited

    Calculation Right of use of asset:

    Present value of rentals 958,746


    Present value of GRV 34,089 115,000 x 45% / 1.11 ^ 4
    Downpayment 50,000
    IDC paid by Chandan ( lessee ) 45,600
    1,088,435

    Date Particulars DR CR
    ROUA 1,088,435
    Jan 1,
    Lease liability 992,835 (958,746 + 34,089)
    2018
    Jan 1,
    2018
    Cash 95,600 ( 50,000 + 45,600 )

    Schedule:

    Year Opening Interest Principle Closing


    2018 992,835 109,212 - 199,817 793,018
    2019 793,018 87,231.99 - 221,797 571,221
    2020 571,221 62,834.31 - 246,195 325,026
    2021 325,026 35,752.88 - 273,276 51,750

    Date Particulars DR CR
    Interest exp 109,212
    Dec 31,
    Lease liability 199,817
    2018
    Cash 309,029

    Date Particulars DR CR
    Dec 31, Depreciation exp 272,109 (1,088,435 / 4 )
    2018 ROUA 272,109

    Balance sheet Extracts


    Non current asset
    ROUA 816,326
    (1,088,435 - 272,109)

    Non - current liabilities


    Lease liability 571,221

    Current Liabilities
    Lease liability 221,797

    Solution 2:
    Game Limited

    Calculation of rental:

    Fair value 1,200,000


    Downpayment - 96,000
    1,104,000
    IDC 24,500 Paid by lessor to be recovered from lessee
    Recovery 1,128,500
    PV of Residual value - 54,317 95,000/1.15^4 100% as lessor will expect entire recovery
    Amount for rental 1,074,183

    Factor 2.855
    Rental 376,249
    Schedule:
    Year Opening Interest Principle Closing
    2018 1,128,500 169,275 - 206,974 921,526
    2019 921,526 138,228.86 - 238,020 683,505
    2020 683,505 102,525.81 - 273,723 409,782
    2021 409,782 61,467.29 - 314,782 95,000

    Date Particulars DR CR
    NIFL 1,128,500
    Jan 1, Cash 96,000
    2018 Cash 24,500
    Asset 1,200,000

    Date Particulars DR CR
    Cash 376,249
    Dec 31,
    Int income 169,275
    2018
    NIFL 206,974

    Date Particulars DR CR
    Cash 376,249
    Dec 31,
    Int income 138,229
    2019
    NIFL 238,020

    Date Particulars DR CR
    Cash 376,249
    Dec 31,
    Int income 102,526
    2020
    NIFL 273,723

    Date Particulars DR CR
    Cash 376,249
    Dec 31,
    Int income 61,467
    2021
    NIFL 314,782

    Balance Shee Extracts


    Note
    Non - current assets
    Net investment in finance lease 16 683,505

    Current Assets
    Net investment in finance lease 16 238,020

    Notes to the financial statements

    Note
    16 Net investment in finance lease

    16.1 Maturity profile:

    2019 376,249
    2020 376,249 `
    2021 471,249 ( 376,249 + 95,000 )
    1,223,748

    16.2 Reconciliation:

    Rentals (376,249 x 3) 1,128,748


    RV 95,000
    1,223,748
    Interest not yet accrued - 302,222
    921,526

    Fame Limited

    Calculation Right of use of asset:

    Present value of rentals 1,074,183


    Present value of GRV 35,306 95,000 x 65% / 1.15 ^ 4
    Downpayment 96,000
    IDC paid by Chandan ( lessee ) 45,800
    Provision for dismantling 20,011 35,000 / 1.15 ^ 4
    1,271,301

    Date Particulars DR CR
    ROUA 1,271,301
    Jan 1, Lease liability 1,109,489 (958,746 + 34,089)
    2018 Provision for dism 20,011
    Cash 141,800 ( 96,000 + 45,800 )

    Schedule:

    Year Opening Interest Principle Closing


    2018 1,109,489 166,423 - 209,826 899,663
    2019 899,663 134,950 - 241,300 658,364
    2020 658,364 98,755 - 277,495 380,869
    2021 380,869 57,130 - 319,119 61,750

    Date Particulars DR CR
    Interest exp 166,423
    Dec 31,
    Lease liability 209,826
    2018
    Cash 376,249
    Date Particulars DR CR
    Dec 31, Depreciation exp 317,825.14 (1,271,301 / 4 )
    2018 ROUA 317,825

    Balance sheet Extracts


    Non current asset
    ROUA 953,475
    (1,271,301 - 317,825)

    Non - current liabilities


    Lease liability 658,364

    Current Liabilities
    Lease liability 241,300

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