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FRS 102 and effect on Leases

  • 22-02-2016 02:44PM
    #1
    Avatar MIA
    Closed Accounts Posts: 6,748 ✭✭✭


    I've a feeling more and more FRS 102 queries may start popping up from here on out.

    I joined a company in Jan 2015 and started preparing new leases using actuarial method (thanks Excel!). However, the CEO said he wanted all the leases to continue straight line basis, so back they went.

    Now, with FRS 102 it has to be done anyway. My question (hopefully you're still reading)...

    Do I need to recalculate all the leases (there's a lot) based on FRS 102 or just those entered into from the 1st of Jan 2014 (still a lot, but less).

    I could ask the auditors, but would rather not. :D


Comments

  • #2
    HeinekenTicket
    Registered Users, Registered Users 2 Posts: 146 ✭✭HeinekenTicket


    Any finance lease cost yet to be allocated to profit or loss on existing leases at transition date should be done using actuarial method.
    Retrospective adjustment not required.


  • #3
    Avatar MIA
    Closed Accounts Posts: 6,748 ✭✭✭Avatar MIA


    HeinekenTicket wrote: »
    Any finance lease cost yet to be allocated to profit or loss on existing leases at transition date should be done using actuarial method.
    Retrospective adjustment not required.

    Just back from a meeting.

    Ah, okay - just take the balances as at the 31-12-2013 and account for costs per actuarial method.

    Thanks :)


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