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

• Lease and period analysed

  TextRequired

• Lease liability at the beginning of the period

  NumberRequired

  267,109.34

• Periodic discount rate (initial or revised rate)

  NumberRequired

  4 %

• Interest for the period (periodic rate × outstanding balance)

  NumberRequired

  10,684.37

  Interest produces a constant periodic rate on the remaining balance (para. 37). With payments in advance, the interest-bearing balance is the one remaining after the payment at the beginning of the period.

• Lease payments made during the period (included in the lease liability)

  NumberRequired

  60,000

• Closing lease liability per the ledger

  NumberRequired

  217,793.71

• Part of the closing lease liability repaid within twelve months (schedule)

  Number

  The current / non-current split is governed by IAS 1; it is not set by IFRS 16 and is not part of the entries of this workpaper.

• Variable payments not included in the lease liability (expense for the period)

  Number

• Cost of the right-of-use asset (adjusted for remeasurements of the lease liability)

  NumberRequired

  271,609.34

• Residual value retained for the right-of-use asset (0 in general)

  NumberRequired

  0

• Transfer of ownership or purchase option reflected in the cost

  ChoiceRequired

  No: to the earlier of the end of the useful life and the end of the lease term

  Yes: depreciation over the useful life of the underlying asset / No: to the earlier of the end of the useful life and the end of the lease term

• Depreciation period retained (in years)

  NumberRequired

  5 years

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 16 §29IFRS 16 §30IFRS 16 §31IFRS 16 §32IFRS 16 §33IFRS 16 §34IFRS 16 §35

• Model and depreciation period

  ChecklistRequired

  • Cost model: cost less depreciation and impairment, adjusted for remeasurements of the liability
  • Depreciation under the requirements of IAS 16
  • Period: useful life if transfer or purchase option reflected, otherwise to the earlier of the end of the useful life and the end of the lease term
  • Indications of impairment examined under IAS 36
  • Investment property at fair value (IAS 40) or revaluation model of the class (IAS 16)

IFRS 16 §36IFRS 16 §37IFRS 16 §38

• Movements in the lease liability

  ChecklistRequired

  • Interest at a constant periodic rate on the remaining balance
  • Lease payments made deducted from the balance
  • Variable payments not included recognised in profit or loss when they occur

IFRS 16 §31IFRS 16 §32IFRS 16 §36IFRS 16 §37

• Closing lease liability recalculated

  CalculationRequired

  217,793.71

  Lease liability at the beginning of the period ; Interest for the period (periodic rate × outstanding balance) ; − Lease payments made during the period (included in the lease liability) ; Closing lease liability per the ledger

• Difference with the ledger (0 expected)

  CalculationRequired

  0

  Lease liability at the beginning of the period ; Interest for the period (periodic rate × outstanding balance) ; − Lease payments made during the period (included in the lease liability) ; Closing lease liability per the ledger

• Interest recalculated (opening balance × periodic rate, payments in arrears)

  Calculation

  10,684.37

  Lease liability at the beginning of the period ; Periodic discount rate (initial or revised rate)

  Interest recalculated when payments are made in arrears: the interest-bearing balance is the opening balance. With payments in advance, the interest-bearing balance is the one remaining after the payment at the beginning of the period (para. 37): the difference flagged by the check is then explained by that payment and documented.

• Annual depreciation of the right-of-use asset

  CalculationRequired

  54,321.87

  Cost of the right-of-use asset (adjusted for remeasurements of the lease liability) ; Residual value retained for the right-of-use asset (0 in general) ; Depreciation period retained (in years)

• Interest on the lease liability

  EntryRequired

  Account	Debit	Credit
  Interest expense	10,684.37
  Lease liability		10,684.37

• Payment of the lease payments

  EntryRequired

  Account	Debit	Credit
  Lease liability	60,000
  Cash		60,000

• Depreciation of the right-of-use asset

  EntryRequired

  Account	Debit	Credit
  Depreciation expense	54,321.87
  Accumulated depreciation of the right-of-use asset		54,321.87

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IFRS 16 §47IFRS 16 §48IFRS 16 §49IFRS 16 §50

• Lessee presentation

  ChecklistRequired

  • Right-of-use assets and lease liabilities presented separately or line items disclosed in the notes
  • Right-of-use asset meeting the definition of investment property presented within it
  • Interest expense presented separately from depreciation, within finance costs
  • Principal in financing, interest under IAS 7, exempt and variable payments in operating activities

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The closing lease liability is recalculatedPass
• The interest entered agrees with the interest recalculatedPass
• The depreciation charge is determinedPass
• The interest entry is balancedPass
• The payment entry is balancedPass
• The depreciation entry is balancedPass

Assets

-114,321.87

Liabilities

-49,315.63

Profit or loss

-65,006.24

OCI

0

Equity

-65,006.24

• Lease and period analysed

  TextRequired

• Lease liability at the beginning of the period

  NumberRequired

  326,789.76

• Periodic discount rate (initial or revised rate)

  NumberRequired

  5 %

• Interest for the period (periodic rate × outstanding balance)

  NumberRequired

  16,339.49

  Interest produces a constant periodic rate on the remaining balance (para. 37). With payments in advance, the interest-bearing balance is the one remaining after the payment at the beginning of the period.

• Lease payments made during the period (included in the lease liability)

  NumberRequired

  0

• Closing lease liability per the ledger

  NumberRequired

  343,129.25

• Part of the closing lease liability repaid within twelve months (schedule)

  Number

  120,000

  The current / non-current split is governed by IAS 1; it is not set by IFRS 16 and is not part of the entries of this workpaper.

• Variable payments not included in the lease liability (expense for the period)

  Number

  80,000

• Cost of the right-of-use asset (adjusted for remeasurements of the lease liability)

  NumberRequired

  447,789.76

• Residual value retained for the right-of-use asset (0 in general)

  NumberRequired

  0

• Transfer of ownership or purchase option reflected in the cost

  ChoiceRequired

  No: to the earlier of the end of the useful life and the end of the lease term

  Yes: depreciation over the useful life of the underlying asset / No: to the earlier of the end of the useful life and the end of the lease term

• Depreciation period retained (in years)

  NumberRequired

  4 years

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 16 §29IFRS 16 §30IFRS 16 §31IFRS 16 §32IFRS 16 §33IFRS 16 §34IFRS 16 §35

• Model and depreciation period

  ChecklistRequired

  • Cost model: cost less depreciation and impairment, adjusted for remeasurements of the liability
  • Depreciation under the requirements of IAS 16
  • Period: useful life if transfer or purchase option reflected, otherwise to the earlier of the end of the useful life and the end of the lease term
  • Indications of impairment examined under IAS 36
  • Investment property at fair value (IAS 40) or revaluation model of the class (IAS 16)

IFRS 16 §36IFRS 16 §37IFRS 16 §38

• Movements in the lease liability

  ChecklistRequired

  • Interest at a constant periodic rate on the remaining balance
  • Lease payments made deducted from the balance
  • Variable payments not included recognised in profit or loss when they occur

IFRS 16 §31IFRS 16 §32IFRS 16 §36IFRS 16 §37

• Closing lease liability recalculated

  CalculationRequired

  343,129.25

  Lease liability at the beginning of the period ; Interest for the period (periodic rate × outstanding balance) ; − Lease payments made during the period (included in the lease liability) ; Closing lease liability per the ledger

• Difference with the ledger (0 expected)

  CalculationRequired

  0

  Lease liability at the beginning of the period ; Interest for the period (periodic rate × outstanding balance) ; − Lease payments made during the period (included in the lease liability) ; Closing lease liability per the ledger

• Interest recalculated (opening balance × periodic rate, payments in arrears)

  Calculation

  16,339.49

  Lease liability at the beginning of the period ; Periodic discount rate (initial or revised rate)

  Interest recalculated when payments are made in arrears: the interest-bearing balance is the opening balance. With payments in advance, the interest-bearing balance is the one remaining after the payment at the beginning of the period (para. 37): the difference flagged by the check is then explained by that payment and documented.

• Annual depreciation of the right-of-use asset

  CalculationRequired

  111,947.44

  Cost of the right-of-use asset (adjusted for remeasurements of the lease liability) ; Residual value retained for the right-of-use asset (0 in general) ; Depreciation period retained (in years)

• Interest on the lease liability

  EntryRequired

  Account	Debit	Credit
  Interest expense	16,339.49
  Lease liability		16,339.49

• Payment of the lease payments

  EntryRequired

  Debit Lease liability ← Lease payments made during the period (included in the lease liability) ; Credit Cash ← Lease payments made during the period (included in the lease liability)

• Depreciation of the right-of-use asset

  EntryRequired

  Account	Debit	Credit
  Depreciation expense	111,947.44
  Accumulated depreciation of the right-of-use asset		111,947.44

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IFRS 16 §47IFRS 16 §48IFRS 16 §49IFRS 16 §50

• Lessee presentation

  ChecklistRequired

  • Right-of-use assets and lease liabilities presented separately or line items disclosed in the notes
  • Right-of-use asset meeting the definition of investment property presented within it
  • Interest expense presented separately from depreciation, within finance costs
  • Principal in financing, interest under IAS 7, exempt and variable payments in operating activities

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The closing lease liability is recalculatedPass
• The interest entered agrees with the interest recalculatedPass
• The depreciation charge is determinedPass
• The interest entry is balancedPass
• The payment entry is balancedNot evaluated
• The depreciation entry is balancedPass

Assets

-111,947.44

Liabilities

16,339.49

Profit or loss

-128,286.93

OCI

0

Equity

-128,286.93

• Lease and period analysed

  TextRequired

• Lease liability at the beginning of the period

  NumberRequired

  1,089,299.21

• Periodic discount rate (initial or revised rate)

  NumberRequired

  5 %

• Interest for the period (periodic rate × outstanding balance)

  NumberRequired

  54,464.96

  Interest produces a constant periodic rate on the remaining balance (para. 37). With payments in advance, the interest-bearing balance is the one remaining after the payment at the beginning of the period.

• Lease payments made during the period (included in the lease liability)

  NumberRequired

  400,000

• Closing lease liability per the ledger

  NumberRequired

  743,764.17

• Part of the closing lease liability repaid within twelve months (schedule)

  Number

  400,000

  The current / non-current split is governed by IAS 1; it is not set by IFRS 16 and is not part of the entries of this workpaper.

• Variable payments not included in the lease liability (expense for the period)

  Number

• Cost of the right-of-use asset (adjusted for remeasurements of the lease liability)

  NumberRequired

  552,509.45

• Residual value retained for the right-of-use asset (0 in general)

  NumberRequired

  0

• Transfer of ownership or purchase option reflected in the cost

  ChoiceRequired

  No: to the earlier of the end of the useful life and the end of the lease term

  Yes: depreciation over the useful life of the underlying asset / No: to the earlier of the end of the useful life and the end of the lease term

• Depreciation period retained (in years)

  NumberRequired

  3 years

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 16 §29IFRS 16 §30IFRS 16 §31IFRS 16 §32IFRS 16 §33IFRS 16 §34IFRS 16 §35

• Model and depreciation period

  ChecklistRequired

  • Cost model: cost less depreciation and impairment, adjusted for remeasurements of the liability
  • Depreciation under the requirements of IAS 16
  • Period: useful life if transfer or purchase option reflected, otherwise to the earlier of the end of the useful life and the end of the lease term
  • Indications of impairment examined under IAS 36
  • Investment property at fair value (IAS 40) or revaluation model of the class (IAS 16)

IFRS 16 §36IFRS 16 §37IFRS 16 §38

• Movements in the lease liability

  ChecklistRequired

  • Interest at a constant periodic rate on the remaining balance
  • Lease payments made deducted from the balance
  • Variable payments not included recognised in profit or loss when they occur

IFRS 16 §31IFRS 16 §32IFRS 16 §36IFRS 16 §37

• Closing lease liability recalculated

  CalculationRequired

  743,764.17

  Lease liability at the beginning of the period ; Interest for the period (periodic rate × outstanding balance) ; − Lease payments made during the period (included in the lease liability) ; Closing lease liability per the ledger

• Difference with the ledger (0 expected)

  CalculationRequired

  0

  Lease liability at the beginning of the period ; Interest for the period (periodic rate × outstanding balance) ; − Lease payments made during the period (included in the lease liability) ; Closing lease liability per the ledger

• Interest recalculated (opening balance × periodic rate, payments in arrears)

  Calculation

  54,464.96

  Lease liability at the beginning of the period ; Periodic discount rate (initial or revised rate)

  Interest recalculated when payments are made in arrears: the interest-bearing balance is the opening balance. With payments in advance, the interest-bearing balance is the one remaining after the payment at the beginning of the period (para. 37): the difference flagged by the check is then explained by that payment and documented.

• Annual depreciation of the right-of-use asset

  CalculationRequired

  184,169.82

  Cost of the right-of-use asset (adjusted for remeasurements of the lease liability) ; Residual value retained for the right-of-use asset (0 in general) ; Depreciation period retained (in years)

• Interest on the lease liability

  EntryRequired

  Account	Debit	Credit
  Interest expense	54,464.96
  Lease liability		54,464.96

• Payment of the lease payments

  EntryRequired

  Account	Debit	Credit
  Lease liability	400,000
  Cash		400,000

• Depreciation of the right-of-use asset

  EntryRequired

  Account	Debit	Credit
  Depreciation expense	184,169.82
  Accumulated depreciation of the right-of-use asset		184,169.82

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IFRS 16 §47IFRS 16 §48IFRS 16 §49IFRS 16 §50

• Lessee presentation

  ChecklistRequired

  • Right-of-use assets and lease liabilities presented separately or line items disclosed in the notes
  • Right-of-use asset meeting the definition of investment property presented within it
  • Interest expense presented separately from depreciation, within finance costs
  • Principal in financing, interest under IAS 7, exempt and variable payments in operating activities

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The closing lease liability is recalculatedPass
• The interest entered agrees with the interest recalculatedPass
• The depreciation charge is determinedPass
• The interest entry is balancedPass
• The payment entry is balancedPass
• The depreciation entry is balancedPass

Assets

-584,169.82

Liabilities

-345,535.04

Profit or loss

-238,634.78

OCI

0

Equity

-238,634.78