Thank you so much for this! I feel that my CPA study material went over this fast and I didn't have a true understanding of accounting for leases, but you help break down difficult concepts and explain it with ease and cover all the holes that I don't understand.

@PanduPandu-uy7cj

3 жыл бұрын

this is not for ifrs 16 right? coz there is no depreciation , the calculation is different

@Edspira

3 жыл бұрын

This is U.S. GAAP. I produced a different series of videos on IFRS 16

Thank you very much for these videos, they have helped me in my CMA exam preparation!

@ccrunner9723

3 жыл бұрын

This topic is covered in the CMA exam?

Thank you! This new type of accounting is interesting. I would have though that the accounting would have separated out the interest expense and depreciation to make the operating lease more in line with the financing lease accounting. In this method the amounts still go straight through above EBIT and therefore the operating lease accounting vs. finance lease would product different EBITS

Absolutely love it!

Thank you!

Hello can you please provide an example for lease which requiring prepayments? How to do the JE for the prepayment? As we are no longer allowed to book into prepaid expense ?

Thank you so much!

Thank you! again

This is ingenious

What do you do for a FMV (Fair Market Value) where the residual value isn't stated?

Amazing explanation 👏

@Edspira

2 жыл бұрын

Glad you think so!

Thanks so much for the video! The way you explain things makes so much sense. It seems to me that the right of use asset account is in a way being amortized. Would that be fair to say?

1st :') Thanks for uploading!!

hello sir...I wanna ask....the fair value calculation you showed...is it the formula to find the fair value?

Hey Michael! Thanks alot for helping the students.. I have a doubt regarding the incremental borrowing rate used in operating lease.. it's mentioned something related to collateral borrowing something like that. Can you help me with this?

@Edspira

3 жыл бұрын

The incremental borrowing rate is the rate of interest the lessee would incur if the lessee instead borrowed the money to purchase the asset

I am not understanding how the depreciation is being accounted for?

Just to be sure, this apply to operating leases, such as rent/lease of an building for office space?

@Edspira

6 жыл бұрын

You'd first have to determine if the lease is an operating or finance lease (kzread.info/dash/bejne/hI2ql5OahKi1pco.html). If it is an operating lease, then yes...this video would apply to leasing a building. Thanks for watching!

@noone4331

6 жыл бұрын

Thank you! One more question- for an operating lease, how would you determine the residual value of a building you are leasing from the lessor? Would that information have to come from the lessor?

This is IFRS though right? Not ASPE.

How we will close the lease expense account in the above case?

@miked6523

5 жыл бұрын

How do you close out all your expenses? To Retained Earnings perhaps?

I thought the asset would only be recognized under a capital lease?

@Edspira

6 жыл бұрын

In 2016, a new lease accounting rule was released for operating leases. This video is up-to-date with the new accounting rule. Thanks for watching!

@olenalanska6318

6 жыл бұрын

That's the new ASC standard just came out in 2016 i think, no more capital leases. financing and operating for lessee

@ravingagunawardana178

4 жыл бұрын

@@Edspira Is this Video still up to date with The standards?

@Kcazbarach

4 жыл бұрын

@@ravingagunawardana178 yes

sir plzz give me your email , i have a question with no intrest rate and having different payments over the time .. i will send u question .. if possible . thnaks