ACF2100 Lecture Notes - Lecture 5: Financial Statement, Conceptual Framework, Interest Expense

• School: Monash Caulfield
• Department: Accounting
• Course: ACF2100
• Professor: Michelle (Chenlan) Song

Document Summary

Lessee shall recognising assests and liabilities arising from a lease. Lease assets, liabilities, and lease-(cid:396)elated e(cid:454)pe(cid:374)ses (cid:373)easu(cid:396)e(cid:373)e(cid:374)ts u(cid:374)de(cid:396) lessee(cid:859)s perspective; and journal entires preparation. What interest rate shall be used to calculate the present value of leased assets and liabilities. Lease (cid:396)e(cid:272)ei(cid:448)a(cid:271)le, lease (cid:396)e(cid:448)e(cid:374)ues u(cid:374)de(cid:396) lesso(cid:396)(cid:859)s pe(cid:396)spe(cid:272)ti(cid:448)e; jou(cid:396)(cid:374)al e(cid:374)t(cid:396)ies. Lease definition aasb16 apendix a (cid:862) lease is a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration . According to conceptual framework definition, a firm may recognise assets it does not own, as long as it is able control to use. Lessee controls the use of the underlying asset: Obtians substantially all of the economic benefits from the use of the identified asset throughout the period of use; and. Directs the use of the assets throughout the period of use.