Lessee subsequent measurement: lease liability and right-of-use asset

Context

Studio Arvel (a fictitious company), an architecture firm, closes its accounts on 31 December and applies IFRS 16. On 1 January 20X1, it leases an office floor in a building owned by Foncière Talmont (a fictitious lessor). According to the case data, the contract is a lease under IFRS 16, Studio Arvel is the lessee and no exemption is applied. You are preparing the accounting at the commencement date and the 20X1 year-end.

Assignment

Workpaper Lessee subsequent measurement: lease liability and right-of-use asset.

Purpose of the workpaper

Prepare the movement in the lease liability for the period (opening balance, interest at a constant periodic rate, payments made, closing balance reconciled to the ledger), calculate the depreciation of the right-of-use asset over the period retained, record the entries and check the presentation in the statement of financial position, the statement of profit or loss and the statement of cash flows.

Questions of the file covered by this workpaper

• Calculate the 20X1 interest and the lease liability at 31 December 20X1.
• Determine the depreciation period, the 20X1 depreciation charge and the carrying amount of the right-of-use asset at 31 December 20X1.
• Which entries do you record in 20X1?

• ContractExtract from the leaseOpen
• MemoTreasury memo on the rateOpen
• InvoiceEstate agency invoiceOpen
• ScheduleTechnical sheet of the buildingOpen
• ContractFurniture insurance contractOpen