Leases, low value and short life exemption - ACCA Financial Reporting (FR)

Leases, low value and short life exemption - ACCA Financial Reporting (FR)
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[@leylawanner6156]

Thank you, Chris!

[@leesheridan5685]

Thanks Chris

[@amaralalitha2523]

Why should the accruals be spread 500 dollars per year...? Is that ang kind of rule or is it plainly the policy?

[@Anvoc]

in first year you recognise 1.5K , but do not pay anything. in 2nd year you accrue additional 1.5K, which brings accruals to 3K total, but in the same year you pay 2K(reducing liability), therefore you end you with 1K accrual at the end of Y2. During Y3 the same thing - 1K+1.5-2k=0.5. and the same for Y4.

[@alexanderhedge]

Thanks!