Helvane leases a shop. At the commencement date: lease liability of 300,000; initial direct costs paid in cash of 5,000; contractual obligation to restore the shop, recognised as a provision under IAS 37 for 20,000 (given). No lease payment was made in advance. Record the initial recognition entry.
- Initial lease liability
- 300,000
- Initial direct costs paid
- 5,000
- Restoration provision (IAS 37)
- 20,000