IFRS 16 Leases IFRS Lectures Finance Lease International Counteracting ACCA Exam default

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  • čas přidán 5. 07. 2024
  • IN this session, I explain IFRS 16. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months. IFRS 16 closed the loophole which allowed corporations to hide certain assets and liabilities off-balance sheet. The IASB published IFRS 16 Leases in January 2016 with an effective date of 1 January 2019.
    ✔️Accounting students and CPA Exam candidates, check my website for additional resources: farhatlectures.com/
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    The objective of IFRS 16 is to report information that (a) faithfully represents lease transactions and (b) provides a basis for users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. To meet that objective, a lessee should recognise assets and liabilities arising from a lease.
    IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments.
    My website: farhatlectures.com/
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Komentáře • 64

  • @pritamlaskar7265
    @pritamlaskar7265 Před 2 lety +4

    Wow. Never understood anything in class but here it looks so simple. Thank you for the video!

  • @yakutahussainnomani7428
    @yakutahussainnomani7428 Před 4 lety +7

    This was such a helpful video. I have actually resorted to watching your videos than what I had been provided to me in my class (unnecessarily complicated). Thank you sir, this might even make my career.

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      You are most welcome. Please subscribe and share.
      If you want to access more resources, check my website: farhatlectures.pathwright.com/library/
      Connect with me:
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      Email: Mansour.farhat@gmail.com

  • @sunseek5
    @sunseek5 Před 2 lety +1

    Crystal clear explanation found nowhere else. Kudos🙏🙏🙏👍👍👍

    • @AccountingLectures
      @AccountingLectures  Před 2 lety

      Thanks. My course catalogue: farhatlectures.pathwright.com/library/

  • @lolo1001001
    @lolo1001001 Před 4 lety +4

    You are extremely knowledgeable..Thanks a lot for sharing your knowledge

    • @AccountingLectures
      @AccountingLectures  Před 4 lety +1

      You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
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      🎤Email: Mansour.farhat@gmail.com

  • @bb8328
    @bb8328 Před 3 lety +1

    Very easy to understand.
    Thank you Farhat.

    • @AccountingLectures
      @AccountingLectures  Před 3 lety

      You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
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  • @aaroacademy
    @aaroacademy Před rokem

    Thank you for sharing this.

  • @shajmohd9935
    @shajmohd9935 Před 2 lety +1

    Thank you so much sir..You explained it in a simple way..Thank you so much..May god bless you

  • @jonathanwieler8863
    @jonathanwieler8863 Před rokem +1

    Love your channel. Thank you.

    • @AccountingLectures
      @AccountingLectures  Před rokem

      Thank you and please visit the website for more farhatlectures.com/

  • @jayrajjavheri8740
    @jayrajjavheri8740 Před 4 lety +1

    Superb Explanation!

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
      ✔farhatlectures.com/
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      🎤Email: Mansour.farhat@gmail.com

  • @mahtabuddin5386
    @mahtabuddin5386 Před 2 lety +1

    Excellent professor..!!

  • @rachelng2048
    @rachelng2048 Před 4 lety +2

    How will the new lease standard affect the deferred tax liability and asset - how do I compute it

  • @nicolaspeters9217
    @nicolaspeters9217 Před 4 lety +1

    Such an Awesome Video.......

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      You are most welcome. Please subscribe and share. If you want to access more resources, check my website:
      farhatlectures.com/ Connect with me: Instagram Account:
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  • @bob6168able
    @bob6168able Před 3 lety +3

    Excellent Mr Farahat, from a CPA.
    Kindly, it will be useful to include also in the example a bonus payment by the lessor and a disposal value at the end of the lease period. And to be more like real life , method to calculate the discount rate ,, implicit or incremental borrowing rate .. etc.
    Also under IFRS, also they use the term “Right of use asset”.

    • @AccountingLectures
      @AccountingLectures  Před 3 lety

      I might have those scenarios under my intermediate accounting.
      Please subscribe and share. If you want to access more resources, check my website:
      ✔farhatlectures.com/
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      🎤Email: Mansour.farhat@gmail.com

  • @edreesalimy5166
    @edreesalimy5166 Před rokem +1

    APPRECIATED

    • @AccountingLectures
      @AccountingLectures  Před rokem

      Thank you and please visit the website for more farhatlectures.com/

  • @angapydiraju7557
    @angapydiraju7557 Před 4 lety +1

    Thank u sir

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      You are most welcome. Please subscribe and share.
      If you want to access more resources, check my website: farhatlectures.pathwright.com/library/
      Connect with me:
      Instagram Account: instagram.com/farhatlectures/
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      Email: Mansour.farhat@gmail.com

  • @fnader1000
    @fnader1000 Před 4 lety

    Dear Mr farahat in case I didn't pay the payment as contract and there is accrual how it will be tackled in this case

  • @ahsanubaidi2288
    @ahsanubaidi2288 Před 2 lety +1

    Thank you

    • @AccountingLectures
      @AccountingLectures  Před 2 lety +1

      Most welcome. Please take a look at my website: farhatlectures.com/ then choose your course.

  • @michaelmcfarlane9120
    @michaelmcfarlane9120 Před 2 lety +1

    why is int payments financing and not investing in the Cash FLow?

  • @cagricelik4937
    @cagricelik4937 Před 10 měsíci

    My uni lecturer sucks. I am so happy to find you, I guess we'll be walking together for long. Can we find enough courses for IFRS just like GAAP here ?

  • @mfilipe2010
    @mfilipe2010 Před 4 lety

    If the lessee has not intention to to buy the asset at the end of the period of lease....like a building that, after 10 years of rent, he want it back to lessor........How to proceed at that moment....

  • @nishadbachu
    @nishadbachu Před 2 lety +2

    with 8%, present valuse of the lease payment is $154,626. Please explain any one about the formula used to reach this figure. I know remaining is interest. Just want to understand the formula to reach $154,626

    • @hamzatawwab
      @hamzatawwab Před 10 měsíci

      Its simple annutity formula, where term of contract (n) is 3 years, interest rate is 8%, annual payment (P) is 60000. PV = P x 1-(1+r)^-n / r

  • @nikclaus2372
    @nikclaus2372 Před 4 lety +1

    Any lectures/videos concerning sale and leaseback under ifrs 16?

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      All about leases here:
      czcams.com/play/PLxP0KZzCGFYPUR3GuCs5zkHfQg09VvmKb.html
      You are most welcome. Please subscribe and share.
      If you want to access more resources, check my website: farhatlectures.pathwright.com/library/
      Connect with me:
      Instagram Account: instagram.com/farhatlectures/
      Linkedin: www.linkedin.com/in/professorfarhat/ Facebook: facebook.com/accountinglectures
      Twitter: twitter.com/farhatlectures
      Email: Mansour.farhat@gmail.com

  • @FB-tr2kf
    @FB-tr2kf Před 4 lety

    Just a quick recap Farhat:
    TIme Stamp 14:37.
    For IFRS 16, Lessees will show the following in the Income Statement: Interest & depreciation expense.
    & In the BS, they will show "right-of-use" asset which is 154.626K, and a liability of the same amount - correct?

  • @rahulsawant4264
    @rahulsawant4264 Před 4 lety +1

    Could you please show Journal Entries for Finance & Operating Lease in the books of Lessee & Lessor with same example?

    • @alisonali1
      @alisonali1 Před 4 lety +1

      Rahul Sawant czcams.com/video/4Unu0VBplQQ/video.html

  • @saad4246
    @saad4246 Před 4 lety +2

    Any videos to explain mid year lease, would be helpful sir

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      Maybe in the future.
      You are most welcome. Please subscribe and share.
      If you want to access more resources, check my website: farhatlectures.pathwright.com/library/
      Connect with me:
      Instagram Account: instagram.com/farhatlectures/
      Linkedin: www.linkedin.com/in/professorfarhat/ Facebook: facebook.com/accountinglectures
      Twitter: twitter.com/farhatlectures
      Email: Mansour.farhat@gmail.com

    • @alisonali1
      @alisonali1 Před 4 lety

      king saad czcams.com/video/4Unu0VBplQQ/video.html

  • @Mahmoudalgindy
    @Mahmoudalgindy Před 4 lety +1

    Hi sir, Thank so much, I got confused!, How can I calculate the present value?
    Assume that Leasing a Car with this info:
    Cash Price $131,050
    10% Advance Payment $13,105.00
    Agreement 4 Years
    Monthly Payment $3,390.93 (Total installments $3,390.93 x 48 Months = $162,764.64 )
    I hope it's clear, I want to know the ROU Asset Value?

    • @AccountingLectures
      @AccountingLectures  Před 4 lety

      You need to revisit the time value of money chapter,
      czcams.com/play/PLxP0KZzCGFYO1NtpU1NGpelY0XB_VyjcC.html

    • @Nubianqu33n88
      @Nubianqu33n88 Před 4 lety +1

      To calculate the present value you can use the excel formula (PV) with the information you have above such as lease term, payment per year, interest rate.

  • @anandkumar-xu3yq
    @anandkumar-xu3yq Před 4 lety

    Can you make video realted Backlog, order entry, pipeline

    • @AccountingLectures
      @AccountingLectures  Před 4 lety +1

      Hi Anand, I don't believe I cover those topics.
      Please subscribe and share the channel on
      social media.
      Please connect with me:
      Instagram: instagram.com/farhatlectures/
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  • @reynardonainggolan1298

    awesome. please teach how to analyze the financial statements on this issue.

  • @sonerguney3225
    @sonerguney3225 Před 3 lety

    No excel to download?

  • @adunyarko9164
    @adunyarko9164 Před rokem +1

    Budget

  • @ahsanubaidi2288
    @ahsanubaidi2288 Před 2 lety +1

    Sir please share notes, do you have notes of all ias and ifrs

  • @rashmiladdha4204
    @rashmiladdha4204 Před 4 lety

    Superb explanation..
    But there is a mistake..lease lesser than 12 months are treated as operating lease..please confirm

    • @pm.nishashakoor3394
      @pm.nishashakoor3394 Před 4 lety

      its not obligatory , you can treat it as finance or operating . whatever you want

  • @lettymhlongo6879
    @lettymhlongo6879 Před 4 lety

    😫😫😫 you didn’t touch on things like residual value guarantee because you spend so much time comparing the old and new standards