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Lessor Form C

Lessor Form C

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Quick guide on how to complete lessor form c

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Video instructions and help with filling out and completing Lessor Form C

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Instructions and help about Lessor Form C

let's do an example of how a lessor would account for a lease under ifrs 16 when there's a guaranteed residual value so let's say that the lessor is a manufacturer or a dealer and we've got a three year lease the lessor's implicit interest rate is 5 percent okay so that is what is going to be used for any discounting when we do our present value calculations remember when we did the accounting from the lessee's perspective and we said well if the lessee doesn't know the lessors implicit rate the lessee would use their incremental borrowing rate well we don't have to worry about the lessee's incremental borrowing rate at all because we are doing this from the perspective of the lessor and the lessor is going to know their own implicit interest rate so we're always going to use that so this would be five percent in this example to do the discounting now we have a guaranteed residual value of 20 000 that means

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