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Where to present Right-of-use assets and lease liability in financials as per IFRS ? #Financial Reporting

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Question added by Abdul Majid Khatri , A Qualified Chartered Accountant , Honeycomb Logistics Pvt. Ltd.
Date Posted: 2020/11/11
Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

The right of use asset is presented on the statement of financial position as non current asset. it is initially measured at the present value of the minimum lease payments and is subsequently depreciated over the shorter of the useful life and lease term.

The lease liability is also shown on the statement of financial position as a fiancial liability which is measured at amortised cost, using the rate of interest implicit in the lease as effective interest rate.

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