I was able to complete my presentation on IFRS 16 with the help of this video! And I was able to get a good score on the presentation. Thank you so much! Also your explaining ability is amazing!
Good Summary as always. but I’d recommend this to people only when they’ve learnt the material in question firsthand. This info works best as a revision material, especially when it involves standards with some measure of calculation.
I really Liked the way You Explained with Examples, I have been studying this IFRS from Academic Institute but couldn't get, from this Video I got it clear, please make Some on other IFRS's
Super explanation. This content is enough to learn about Lease accounting and perform activities. Thank you very much for making this video and it is useful for every one
At the commencement in lessor’s perspective he will debit lease receivable and credits the PPE, if the PPE’s NBV is less or more than lease receivable amount, there will be an unadjusted difference would be there in the PPE account. How to sort this issue.
In that case, you would need to set up your lease table a bit differently, with the periods between the individual lease payments of 6 months. And then, you would use 6-months rate instead of annual rate.
What do you do under IFRS 16 subsequent to initial measurement if the lessee pays rent in advance. For example, you pay January's rent the last week of December. It doesn't feel like a prepaid when there is a lease liability. Back under ASC 840 US GAAP, it would have simply been a prepaid asset because there was no lease liability on the books.
Please let me know when we receive a invoice from respective supplier what entry we need to pass in books of account? We cannot debit Lease liability account or any expense account. Supplier needs to be credited and which account need to debit? Once payment done, supplier need to debited and bank credited
What supplier do you mean here? The lessor? Or do you mean the supplier of the item that is financed by the lease? If this is the case, then you debit whatever you purchased from that supplier, for example Dr PPE (car) Cr Suppliers.
Often that is the same. Almost all rental contracts meet the definition of a lease, but the lease can be hidden in a differently titled contracts, too.
Financing-based installment with some sort of note payable or paying installments to the owner (while in use) with the intent to transfer title? If the second, it would probably be affected by this rule... seeing how that is pretty similar to a lease. However, I would personally say that buying on installment plans without some sort of creditor is highly unusual.
I strongly recommend studying this video or any other video explaining the lease accounting. In fact, when you are taking an asset under the lease, the substance is that you are acquiring that asset (or the right to use it) financed by the loan.
at 5:50 in video the monthly payment is made, debit Lease liability and credit cash. the monthly payment is made of 2 parts, interest and capital. the interest is a debit to Lease liability and cancels with credit entry made in step 1. the capital reduces the Lease liability.
Paperbark Ltd enters into a contract with a manufacturer to purchase a particular type, quality and quantity of shirts for a three-year period. The type, quality and quantity of shirts are specified in the contract. The manufacturer has only one factory that can meet the needs of Paperbark Ltd. The manufacturer is unable to supply the shirts from another factory or source the shirts from a third-party supplier. The capacity of the manufacturer’s factory substantially exceeds the output for which Paperbark Ltd has contracted. The manufacturer makes all decisions about the operations of the factory, including the production level at which to run the factory and which customers’ contracts to fulfil with the output of the factory that is not used to fulfil Paperbark Ltd’s contract. Does the contract between Paperbark Ltd and the manufacturer contain a lease in accordance with the provisions of IFRS 16 ‘Leases’?
1:57 Just a feedback for improvement: it is best to say the word "cannot" when explaining, instead of "can't", as it sometimes sound like you are saying "can".
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I was able to complete my presentation on IFRS 16 with the help of this video! And I was able to get a good score on the presentation. Thank you so much! Also your explaining ability is amazing!
Good Summary as always. but I’d recommend this to people only when they’ve learnt the material in question firsthand. This info works best as a revision material, especially when it involves standards with some measure of calculation.
Lovely , educative and interesting
I really Liked the way You Explained with Examples, I have been studying this IFRS from Academic Institute but couldn't get, from this Video I got it clear, please make Some on other IFRS's
Thank you for your summaries on the accounting standards. They are very helpful.👌🏾
That was lovely and you explain so well! I could listen for hours! Thank you!!!
What would we do without Silvia.
I would lose my job for sure
Yesss
Siliva thank you for sharing the knowledge in your easy way... Well done
Worthy video found at youtube.. Great work ❤
Super explanation. This content is enough to learn about Lease accounting and perform activities. Thank you very much for making this video and it is useful for every one
very nicely explained!
At the commencement in lessor’s perspective he will debit lease receivable and credits the PPE, if the PPE’s NBV is less or more than lease receivable amount, there will be an unadjusted difference would be there in the PPE account. How to sort this issue.
Thank you Silvia- I shot videos are very informative and helpful.
Thank you a lot Ms. Siliva
What will be the accounting entries for lease payment and interest if the arrangement to pay is on every half yearly? Thanks.
In that case, you would need to set up your lease table a bit differently, with the periods between the individual lease payments of 6 months. And then, you would use 6-months rate instead of annual rate.
Very helpful pictorial content. Thankyou very much.
Good summary of the standard Silvia
Thank you for this Presentation. Much appreciated.
What do you do under IFRS 16 subsequent to initial measurement if the lessee pays rent in advance. For example, you pay January's rent the last week of December. It doesn't feel like a prepaid when there is a lease liability. Back under ASC 840 US GAAP, it would have simply been a prepaid asset because there was no lease liability on the books.
thank you ,Very helpful
Please let me know when we receive a invoice from respective supplier what entry we need to pass in books of account? We cannot debit Lease liability account or any expense account. Supplier needs to be credited and which account need to debit? Once payment done, supplier need to debited and bank credited
What supplier do you mean here? The lessor? Or do you mean the supplier of the item that is financed by the lease? If this is the case, then you debit whatever you purchased from that supplier, for example Dr PPE (car) Cr Suppliers.
Thankyou for the Summary. But i know what's the difference between a Lease and Rental Contract
Often that is the same. Almost all rental contracts meet the definition of a lease, but the lease can be hidden in a differently titled contracts, too.
Thank you❤
What happens if I buy an asset and immediately lease it? How would I registr that in my BS and IS?
Thank you for this 😍
Amazing 😮
Awesome
Thx for ur effort ❤
that is wonderful
Nice to explain it.much appreciated 👍👍
na kr
this is helpful
How do you create your videos if there is a link where I can learn please share it
My employer paid thousands to Kaplan, I wish I'd have gone for CPD box. I'm not a fan of their online platform
Thousands of what. Dollars, euro, rupees, pounds
how about if we buy an asset under installment plan? does it still consider lease?
Financing-based installment with some sort of note payable or paying installments to the owner (while in use) with the intent to transfer title? If the second, it would probably be affected by this rule... seeing how that is pretty similar to a lease. However, I would personally say that buying on installment plans without some sort of creditor is highly unusual.
Super sir 😅😅😅😮
I don't understand why do we book interest on lease liability? It's not some kind of borrowed amount then why? Can you please explain ?
I strongly recommend studying this video or any other video explaining the lease accounting. In fact, when you are taking an asset under the lease, the substance is that you are acquiring that asset (or the right to use it) financed by the loan.
at 5:50 in video the monthly payment is made, debit Lease liability and credit cash. the monthly payment is made of 2 parts, interest and capital. the interest is a debit to Lease liability and cancels with credit entry made in step 1. the capital reduces the Lease liability.
Anyone using any IFRS16 accounting softwares ?
My question is that.... what about unguaranteed residual value in lessor accounting for NIL? You only mentioned GRV...
Lessor ki accounting k liye ugrv ya grv matter nh krti pv poore ki hi lete hain
Paperbark Ltd enters into a contract with a manufacturer to purchase a particular type, quality
and quantity of shirts for a three-year period. The type, quality and quantity of shirts are specified in the contract. The manufacturer has only one factory that can meet the needs of Paperbark Ltd. The manufacturer is unable to supply the shirts from another factory or source the shirts from a third-party supplier. The capacity of the manufacturer’s factory substantially exceeds the output for which Paperbark Ltd has contracted. The manufacturer makes all decisions about the operations of the factory, including the production level at which to run the factory and which customers’ contracts to fulfil with the output of the factory that is not used to fulfil Paperbark Ltd’s contract. Does the contract between Paperbark Ltd and the manufacturer contain a lease in accordance with the provisions of IFRS 16 ‘Leases’?
1:57 Just a feedback for improvement: it is best to say the word "cannot" when explaining, instead of "can't", as it sometimes sound like you are saying "can".
A