What is the lease liability recognised at the commencement of the lease by a lessee with the following information provided?Lease term: 5 yearsImplicit interest rate: 10%Periodic instalment payment: $234 567 per yearPayment type: In arrearsFair value (FV) of the equipment: $ 820 250Guaranteed residual value (GRV) at the end of the lease: $ 70 000Unguaranteed residual value (URV) at the end of the lese: $ 30 000Included in the periodic instalment of $234 567 is an annual service expense for insurance and maintenance of $ 34 567(Enter your answer rounded to the nearest 1 dollar value. No decimal place required.)

Question

BlackTom AI · Accepted Answer

Lease liability at commencement equals the present value of lease payments the lessee is obliged to make (excluding non-lease components) plus the present value of any guaranteed residual value, discounted at the lease implicit rate.

1) Identify relevant concepts
- Under IFRS 16, exclude non-lease components (service/insurance) from the lease payments used to measure the liability.  
- Include any guaranteed residual value (GRV) payable by the lessee at lease end. Do not include unguaranteed residual value (URV).  
- Payments are in arrears, so treat the periodic payments as an ordinary annuity. Discount rate = implicit rate 10%.

2) Separate the lease payment
Periodic instalment = 234,567. Included non-lease (service) = 34,567.
Lease payment (cash flow for liability) = 234,567 − 34,567 = 200,000 per year.

3) Compute present values (showing intermediate steps)
- PV factor for an ordinary annuity of n = 5 at r = 10%:
PVIFA(10%,5) = [1 − (1+0.10)^(−5)] / 0.10
(1.10)^5 = 1.61051 → (1.10)^(−5) = 1 / 1.61051 = 0.620921
PVIFA = (1 − 0.620921) / 0.10 = 0.379079 / 0.10 = 3.79079

PV of annual lease payments = 200,000 × 3.79079 = 758,158.00

- PV of guaranteed residual value (GRV = 70,000) at year 5:
PV factor = (1.10)^(−5) = 0.620921
PV(GRV) = 70,000 × 0.620921 = 43,464.47

4) Sum and round
Lease liability = PV(payments) + PV(GRV)
= 758,158.00 + 43,464.47 = 801,622.47 → rounded to nearest dollar = 801,622

5) Why alternatives would be wrong
- Including the service component (34,567) would overstate the lease liability because that portion is a non-lease expense.  
- Including the unguaranteed residual value (URV = 30,000) would be incorrect because the lessee has no obligation to pay it under the guarantee.  
- Using annuity-due factors (payments at beginning) would be wrong because payments are stated to be in arrears.

Conclusion: The correct lease liability at commencement is $801,622, which matches the provided answer.

类似问题

You are viewing a graph that plots the NPVs of a project to various discount rates that could be applied to the project's cash flows. What is the name given to this graph?

Assume the price of a product is $20, and the table below shows total costs for various levels of output. [table] Quantity | 0 | 1 | 2 | 3 | 4 | 5 | 6 Total Costs | $15 | $20 | $22 | $28 | $37 | $58 | $105 [/table] What is the profit when output is 1? (Do not use the dollar sign in your answer)

So far, how many in-class activities have you completed? 16 or more

From the list below, the best definition of the term 'excise tax' is

From the list below, the best definition of the word 'subsidy' is

An increase in a excise tax imposed on wine producers is likely to result in

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单