FAC3762 - Template

Leases - Lessee Accounting

Journal entries:

Date Description Debit Credit Reference
1. Initial recognition (par 24(a) & 26)
Right of use assets (SFP) -
VAT (SFP) -
Lease liability (SFP) -

2. Prepaid lease payments (Par 24(b))
Right of use asset (SFP) -
Bank (SFP) -

3. Capitalise initial direct costs (par 24©)
Right of use asset (SFP) -
VAT (SFP) -
Bank (SFP) -

4. Dismantling provision (par 24(d))
Right of use asset (SFP) -
Provision (SFP) -

5. Recognition of finance costs (par 36(a))
Finance costs (PL) -
Lease liability (SFP) -

6. Payment of lease liability (par 36(b))
Lease liability (SFP) -
Bank (SFP) -

7. Depreciate ROU asset
Depreciation (PL) -
Accumulated Depreciation (SFP) -

8. Accrue for interest at reporting date
Finance income (PL) -
Lease liability / Accrual (SFP) -

9. Reverse accrual from previous year
Lease liability / Accrual (SFP) -
Finance costs (PL) -

10. Reflect current portion of lease liability
Lease liability - non current (SFP) -
Lease liability - current (SFP) -

11.Recognise deferred tax

, Deferred Tax (SFP/ PL) -
Deferred Tax (SFP/ PL) -

Reassessment of lease liability

Right of use asset (SFP) / Expense (PL) -
Lease liability (SFP) -
OR
2. Decrease in lease liability (par 39 - 43)
Lease liability (SFP) -
Right of use asset (SFP) / Income (PL) -
- -