On 1 January 20X1, Lisandre leases out business premises under an operating lease with a lease term of 4 years, at a constant payment of 50,000 a year payable in advance. It incurs initial direct costs of 12,000 to obtain it. Lease income is recognised on a straight-line basis. Compute the 20X1 expense for the initial direct costs and the amount of these costs still included in the carrying amount of the premises at 31 December 20X1.
- Initial direct costs
- 12,000
- Lease term
- 4
- Constant annual payment
- 50,000